\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 039 Sichuan Road & Bridge Co.Ltd(600039) )
Event: the company released the annual report of 2021. The company achieved an operating revenue of 85.049 billion yuan, a year-on-year increase of 31.73%; The net profit attributable to the parent company was 5.582 billion yuan, a year-on-year increase of 85.43%.
The performance increased as scheduled and the profitability improved. In 2021, the company achieved an operating revenue of 85.049 billion yuan, a year-on-year increase of 31.73%; It is mainly due to the impact of the epidemic situation in the previous year and the good production and operation in the current period. The net profit attributable to the parent company was 5.582 billion yuan, a year-on-year increase of 85.43%; The non net profit deducted was 5.474 billion yuan, a year-on-year increase of 86.1%. During the reporting period, the net operating cash flow of the company was -1.023 billion yuan, an increase of 4.3 billion yuan year-on-year, mainly due to the increase in investment in PPP projects under construction such as Meishan Tianhuan and yanpingba. At the end of the reporting period, the company’s asset liability ratio was 77.72%, a year-on-year decrease of 0.41pct. At the end of the reporting period, the company’s gross profit margin was 16.14%, an increase of 1.34 PCT year-on-year. The net interest rate was 6.7%, a year-on-year increase of 1.71pct. The expense rate during the period was 7.49%, a year-on-year decrease of 0.84pct.
The order in hand is full. During the reporting period, 244 projects were awarded with a total amount of 100173 billion yuan, and the total amount of orders in hand at the end of the reporting period was 137.2 billion yuan. Among them, the amount of projects that have signed contracts but have not yet started is 27.49 billion yuan, the amount of uncompleted parts of projects under construction is 93.765 billion yuan, and the remaining projects that have won the bid but have not signed contracts and have not started are 16 billion yuan.
The construction of Chengdu and Chongqing will help the development. The construction of Chengdu Chongqing double city economic circle has been accelerated in an all-round way, the development strategy of “one trunk and multiple branches” has been deeply implemented, and the province with strong transportation has been accelerated. The transportation infrastructure of Sichuan Province will enter a golden period of large-scale construction and development. By 2025, Sichuan’s comprehensive transportation construction is expected to invest more than 1.2 trillion yuan, including 700 billion yuan for roads and waterways, 300 billion yuan for railways and 220 billion yuan for urban rail transit. In February this year, the layout plan of Sichuan Expressway Network (20222035) was released, strengthening the main shaft and adding 4 expressways, and adding 13 Expressways on both wings. Ten expressways will be added in the three zones, six expressways will be added in linkage with the three prefectures, and 18 prefecture level urban expressway ring roads will be planned to form a Provincial Expressway “20, 13 and 13” network, namely 20 Chengdu radiation, 13 vertical lines, 13 horizontal lines, 4 ring lines and 44 connecting lines. By 2035, the total scale of expressways in Sichuan Province will be about 20000 kilometers (including 600 kilometers of capacity expansion double track), including 8500 kilometers of national expressways and 11500 kilometers of provincial expressways. In addition, 1700km long-term outlook line is planned. Of the 20000 kilometers of planned expressways, 8608 kilometers have been built, 3009 kilometers are under construction and 8383 kilometers are to be built. Among them, 5330 kilometers of national highways have been built, 1550 kilometers are under construction and 1620 kilometers are to be built; 3278 kilometers of provincial highways have been built, 1459 kilometers are under construction and 6763 kilometers are to be built. The construction of Chengdu and Chongqing provides a broad market space for the development of transportation infrastructure industry in the jurisdiction.
Investment suggestion: it is estimated that the company’s EPS will be 1.47 yuan / share in 2022, and the corresponding dynamic P / E ratio will be 7.29 times, maintaining the “recommended” rating.
Risk warning: the landing of newly signed orders is less than expected; The risk that the recovery of accounts receivable is less than expected; The risk of declining growth rate of fixed asset investment.
