\u3000\u3000 Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) (601669)
Event: Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) announced that in January 2022, the total amount of new contracts signed by the company was about 65.495 billion yuan, a year-on-year increase of + 3.10%. Among them, the amount of newly signed contracts in China was about 52.199 billion yuan, a year-on-year increase of + 5.69%; The amount of newly signed contracts abroad was about 13.296 billion yuan, a year-on-year increase of - 5.96%. For the first time, the company disclosed the newly signed contract amount of energy, power, water resources and environment, infrastructure and other businesses, which were 14.78 billion yuan, 13.804 billion yuan, 28.9 billion yuan and 8.011 billion yuan respectively, and the number of newly signed projects was 327, 153, 255 and 117 respectively.
Comments:
The newly signed contract amount of the company in January of 22 years was about 65.495 billion yuan, a year-on-year increase of + 3.10%, and the orders in a single month maintained a steady growth. From the company's historical order data, the proportion of newly signed contracts in January of 20 and January of 21 in the annual order amount was 7.8% and 8.1% respectively. From a regional perspective, the newly signed contract amount in China was about 52.199 billion yuan, a year-on-year increase of + 5.69%; The amount of newly signed contracts abroad was about 13.296 billion yuan, a year-on-year increase of - 5.96%; The company's order growth in January was mainly driven by Chinese orders.
According to the large order data released by the company, the total amount of newly signed large orders (single orders with a contract amount of more than 500 million yuan) in January 22 was about 18.746 billion yuan, accounting for 29% of the newly signed contract amount, which was significantly lower than that in December 21 (54%). From this, it can be judged that the growth of the newly signed contract amount of the company in January 22 was not due to the signing of large orders, but due to the steady growth of market demand as a whole.
In terms of the types of large orders, the new large orders signed by China in January 22 are mainly distributed in the field of infrastructure construction and new energy construction, including aviation and Power Engineering (shipping development superimposed hydropower), highway engineering, hydropower station, river water treatment, comprehensive treatment of water environment, offshore wind power and other subdivided fields. The company continues to make efforts in the field of water conservancy and hydropower with competitive advantages. Foreign newly signed large orders are mainly distributed in Iraq, Angola, the Philippines and other countries, involving refining and chemical plants, mining plant water supply, school construction, photovoltaic projects and other fields.
Profit forecast, valuation and rating: Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) has competitive advantages in the fields of power construction and operation investment, water conservancy and water environment treatment and operation. In January 22, the company's orders maintained steady growth and continued to make efforts in the field of water conservancy and hydropower with competitive advantages. We are optimistic about the company's business development in the field of new energy power generation operation assets and its competitive advantage in the engineering field during the 14th Five Year Plan period. Maintain the company's EPS forecast of 0.58 yuan, 0.65 yuan and 0.72 yuan from 2021 to 2023, and the current price corresponds to the company's 22-year dynamic P / E ratio of 12x, maintaining the "buy" rating.
Risk tip: the demand for contracted construction of new energy power generation projects is lower than expected, the growth rate of newly signed orders slows down, the project payment collection is lower than expected, and the profitability of real estate business is lower than expected.
