On the 11th day and 10th board, Zhejiang Construction Investment Group Co.Ltd(002761) (002761, SZ) has become the "popular fried chicken" in the capital market of the year of the tiger. On February 21, Zhejiang Construction Investment Group Co.Ltd(002761) closed at 21.21 yuan and then closed at the daily limit. From February 7 to February 21, the range increased by 170.88%. With the gradual "demon" of stock price, Zhejiang Construction Investment Group Co.Ltd(002761) has also attracted regulatory attention. The exchange requires Zhejiang Construction Investment Group Co.Ltd(002761) to confirm whether there is any major information that should be disclosed but not disclosed, and whether there is any major change in the fundamentals of the company.
On February 21, Zhejiang Construction Investment Group Co.Ltd(002761) announced that there was no need to correct or supplement the information disclosed in the early stage; At present, the operation of the company is normal, and the internal and external business environment has not changed significantly. In addition, Zhejiang Construction Investment Group Co.Ltd(002761) in the risk prompt, it is mentioned that the balance of accounts receivable of the company is large, and affected by the regulation of the real estate industry, the turnover speed of accounts receivable is slow, so there is a certain risk of recovery of accounts receivable. At the same time, the asset liability ratio is also higher than the industry average.
After a careful inventory, Zhejiang Construction Investment Group Co.Ltd(002761) is related to the recent hot concept topics such as East digital West calculation and Hangzhou Asian Games. However, in the 2020 annual report, compared with the municipal, rail transit, PPP and other projects with more infrastructure attributes, Zhejiang Construction Investment Group Co.Ltd(002761) more projects come from real estate construction projects and are more closely related to real estate.
why is the market bullish?
On February 21, Zhejiang Construction Investment Group Co.Ltd(002761) rose again to close at 21.21 yuan / share. The turnover rate on that day was as high as 35.42%, with a total market value of 22.93 billion yuan.
In December 2019, Zhejiang Construction Investment Group Co.Ltd(002761) backdoor multi favorite achieved overall listing. According to the data, the share price of Zhejiang Construction Investment Group Co.Ltd(002761) fell by 27.77% between 2020 and 2021, while the range increase of Zhejiang Construction Investment Group Co.Ltd(002761) has reached 182.05% as of February 21 since 2022.
Market sentiment is high. What is the logic of being bullish?
According to the research report released by Anxin securities on February 20, during the trading hours from February 14 to February 18 (hereinafter referred to as last week), 125 companies in the construction industry recorded an increase, accounting for 86%; The number of companies that rose more than the industry index (+ 3.51%) last week was 92, accounting for 63%. The construction industry recorded an increase last week, the number of companies was the same as last week, and the number of companies that outperformed the industry increased compared with last week. The top five increases in the industry are Hangzhou Landscape Architecture Design Institute Co.Ltd(300649) (+ 92.29%), Chengbang Eco-Environment Co.Ltd(603316) (+ 61.13%), Zhejiang Construction Investment Group Co.Ltd(002761) (+ 52.89%), Yuancheng Environment Co.Ltd(603388) (+ 38.24%), Ningbo Construction Co.Ltd(601789) (+ 28.54%).
According to the analysis of the research report, the previous tone of steady growth was continued last week, and the policy continued to increase. The construction plans of various regions were considerable, and major projects in many provinces and cities were started intensively. From the perspective of the industry, the fundamentals of the construction industry will improve as a whole in 2022, especially the rapid growth of orders from central infrastructure enterprises and local infrastructure leaders, which will help improve the performance. It will take the lead in benefiting from the release of infrastructure demand under the goal of stable growth. At the same time, it will actively layout new businesses, improve comprehensive strength and help repair the valuation.
According to the data of the dragon and tiger list, hot money transactions are very active and have been in and out of Zhejiang Construction Investment Group Co.Ltd(002761) for many times. Hot money seats such as Everbright Shenzhen Jintian Road, China stock market news Lhasa East Ring Road and Huatai Shanghai Mudanjiang Road have appeared in the list of top five business departments for many times recently.
After 11 days and 10 board meetings, on February 21, Zhejiang Construction Investment Group Co.Ltd(002761) announced that the company would verify the abnormal fluctuation of stock trading. The trading of the company's shares would be suspended since the opening of the market on February 22, and the trading would be resumed after the disclosure of the verification announcement.
the company's business chassis is under construction
The main businesses of Zhejiang Construction Investment Group Co.Ltd(002761) include construction business, industrial manufacturing business, engineering service business and infrastructure investment and operation business. Construction business is the main business segment and revenue source of Zhejiang construction group, including housing construction, municipal roads and bridges, rail transit, water conservancy and hydropower, equipment installation, decoration, engineering design and other construction businesses.
According to the data of the third quarterly report of 2021, the total revenue in the first three quarters of 2021 was 68.382 billion yuan, a year-on-year increase of 15.18%, and the net profit was 1.080 billion yuan, a year-on-year increase of 34.26%.
In addition, according to the disclosure of the 2020 annual report, Zhejiang Construction Investment Group Co.Ltd(002761) mentioned that the growth of operating revenue is mainly in the field of "two new and one heavy" of the group (Note: two new and one heavy, that is, the construction of new infrastructure, new urbanization, transportation, water conservancy and other major projects). The expansion of "three markets" (government market, large owner market and two foreign markets) and EPC project has achieved initial results.
In 2020, Zhejiang Construction Investment Group Co.Ltd(002761) 91.59% of the revenue came from the construction business. From the perspective of the projects completed in 2020, Zhejiang Construction Investment Group Co.Ltd(002761) among the projects that have been completed and accepted, the number and revenue of housing construction projects contribute the most, and the revenue recognition amount of municipal projects, rail transit projects, PPP projects and installation projects are relatively low.
In the stock trading abnormal fluctuation and risk prompt announcement released on February 21, Zhejiang Construction Investment Group Co.Ltd(002761) mentioned that the construction industry in which the company is located generally has a long construction period, and there is a certain lag in the completion, acceptance and audit final accounts of the project. Therefore, the balance of accounts receivable of the company is large, and the turnover speed of accounts receivable is slow due to the regulation of the real estate industry, There is a certain risk of recovery of accounts receivable.
As of September 30, 2021, Zhejiang Construction Investment Group Co.Ltd(002761) accounts receivable was 31.890 billion yuan, notes receivable was 2.747 billion yuan, contract assets was 21.429 billion yuan, and the total value of accounts receivable, notes receivable and contract assets was 56.067 billion yuan, accounting for 58.59% of the total assets of the current period. As of September 30, 2021, the company's asset liability ratio was 91.42%.
There are many "themes" in 2022 Zhejiang Construction Investment Group Co.Ltd(002761) , but the focus of the company's chassis is still on housing construction projects. After the resumption of trading, Zhejiang Construction Investment Group Co.Ltd(002761) share price can continue the recent strong momentum? Obviously, it needs further observation.
