\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 548 Shenzhen Expressway Company Limited(600548) )
Key points
Event: the company issued the 2021 annual report. The company achieved an operating revenue of about 10.9 billion yuan in 2021, with a year-on-year increase of 35.5%; The net profit attributable to the parent company was about 2.61 billion yuan, a year-on-year increase of about 26.9%; The net profit deducted from non parent company was about 2.34 billion yuan, with a year-on-year increase of about 19.3%. The company plans to pay a cash dividend (before tax) of 0.62 yuan per share, with a cash dividend rate of about 56%, which has remained above 45% in recent three years.
Endogenous + extension, the revenue of toll road business returns to growth. The effect of epidemic prevention and control in China is good, and the toll road business of the company has basically returned to normal. In 2021, the total daily traffic volume of toll roads (excluding outer ring road project and Longda Expressway) controlled by the company increased by 19.2% compared with the same period of 19 years, and the average daily toll income increased by 5.6% compared with the same period of 19 years (the company confirmed the toll compensation income during the epidemic of Changsha Ring Road, Yichang Expressway and Wuhuang Expressway in 2021); In addition, with the opening of phase I of the outer ring road and the consolidation of the acquired Longda expressway, the company’s toll road business achieved an operating revenue of 5.89 billion yuan in 2021, an increase of 29.0% over the same period in 19 years.
The gross profit margin of toll road business recovered rapidly year-on-year. The gross profit margin of the company’s toll road business in 2021 was 49.1%, an increase of 4.3 PCT year-on-year in 2020 and a decrease of only 1.2 PCT compared with the same period in 2019, mainly due to the good operating benefits of the first phase of the newly opened outer ring expressway and the growth of the revenue of most affiliated toll roads.
The toll road business continues to expand, and the acquisition of bay area development improves the profitability. The preliminary design scheme (8 + 8 double-layer composite channel) and budget estimate of the reconstruction and expansion of the company’s machine load expressway have been approved by the Ministry of transport, and the company is actively carrying out construction drawing revision, bidding and other related work; Yangmao reconstruction and expansion project (four to eight) has been completed and officially opened to traffic on December 16, 2021; The company’s outer ring phase II was opened to traffic on January 1, 2022, and the preliminary work of outer ring phase III has been started; In addition, the company has completed the acquisition of 71.83% of the controlling interest in Bay Area Development (0737. HK) (the total cost does not exceed HK $10.5 billion). The bay area has developed and operated Guangzhou Shenzhen Expressway Company Limited(600548) , Western Line Expressway. The above roads are located in the core area of Guangdong, Hong Kong and Macao, with obvious location advantages. At the same time, Guangzhou Shenzhen Expressway Company Limited(600548) can also have synergy with Shenzhen regional highways such as riverside Expressway operated by the company, so as to further improve the profitability of the company.
The company’s wind power business continues to expand. In 2021, the company’s clean energy business and solid waste resource management business achieved operating revenue of 710 million yuan and 870 million yuan respectively, with year-on-year changes of – 57.2% and + 3.2% respectively. The main reason is that Nanjing wind power is affected by many factors, such as the intensification of market competition after the “rush to install wind turbines”, the slow implementation of stock projects and the delayed implementation of incremental orders; The wind power business continued to expand. By the end of 2021, the cumulative installed capacity of wind power projects invested and operated by the company had reached 648mw, and the contribution income of wind power in 21 years was about 580 million yuan, a year-on-year increase of 144%. In 2021, the company’s large environmental protection business contributed a total gross profit of about 470 million yuan, a year-on-year decrease of 2.6%.
The gross profit of real estate business decreased year-on-year. In 2021, the company recognized a real estate sales revenue of 300 million yuan and realized a gross profit of about 160 million yuan, a year-on-year decrease of 10.8%, mainly due to the decrease in the number of houses delivered by Guilong development project.
Investment suggestion: the company has abundant toll road reserve projects, and its large environmental protection business keeps expanding. Under the background of the company’s stock toll road business resuming growth, the company’s profits will return to the growth track in the future. Regardless of the impact of the additional issuance of H shares and the acquisition of the development of the bay area, we raised the company’s eps0.00 for 22-23 years 9% / 2.5% to 1.24/1.31 yuan respectively, adding 24-year EPS to 1.35 yuan, maintaining the company’s a and H “overweight” ratings.
Risk warning: the new road network in the region will divert the toll road business of the company; The toll standard of toll roads has decreased; The revenue of the company’s large environmental protection and other businesses was lower than expected.
