\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 800 China Communications Construction Company Limited(601800) )
Matters: the company released its annual report for 2021, and achieved an operating revenue of 685639 billion yuan in 2021, a year-on-year increase of 9.25%; The net profit attributable to shareholders of listed companies was 17.993 billion yuan, a year-on-year increase of 11.03%. Realize basic eps1 02 yuan / share. It is proposed to pay a cash dividend of 2.04 yuan (including tax) for every 10 shares, with a cash dividend ratio of 20%.
The operating revenue grew steadily, and the revenue growth of infrastructure design and dredging business increased significantly. The year-on-year growth rate of the company’s total operating revenue in 2021 was 9.25%, which slowed down compared with the same period of the previous year, with a year-on-year decrease of 3.74 PCT. The company achieved year-on-year revenue growth of 59.01%, 25.05%, 7.53% and – 22.23% respectively in 2021q1 / Q2 / Q3 / Q4, and Q4 revenue fell year-on-year. In terms of business types, the revenue of infrastructure construction business during the period was 607412 billion yuan, yoy + 8.49% (year-on-year – 5.58 PCT), accounting for 89.13% of the company’s revenue; The revenue of survey and design business was 47.593 billion yuan, yoy + 18.99% (year-on-year + 7.99 PCT), accounting for 6.98% of the company’s revenue; The revenue of dredging business was 42.852 billion yuan, yoy + 12.06% (year-on-year + 6.66 PCT), accounting for 6.29%. In 2021, the growth rate of the company’s infrastructure construction revenue slowed down, and the revenue of infrastructure design and dredging business increased significantly.
During the period, the cost rate was effectively controlled and the profitability was improved overall. In terms of gross profit margin, the company’s comprehensive gross profit margin during the reporting period reached 12.52%, down 0.45 PCT from 2020. From the perspective of business structure, the gross profit margin of each main business is: infrastructure construction 11.31% (year-on-year -0.50 PCT), infrastructure design 17.95% (year-on-year -0.71 PCT), dredging business 13.78% (year-on-year -1.72 PCT) and other business 7.19% (year-on-year -1.27 PCT). The gross profit rate of each business has decreased during the period. In terms of period cost, the period cost rate in 2021 was 7.25%, a year-on-year decrease of 0.62 PCT, and the period cost rate was effectively controlled, mainly due to the year-on-year decrease of 0.33 PCT and 0.42 PCT in the management cost rate (2.84%) and financial cost rate (0.90%) respectively. In terms of asset and credit impairment, the total asset and credit impairment occurred during the period was 7.140 billion yuan, an increase of 1.49 billion yuan compared with 2020, or due to the increase of bad debt reserves withdrawn from receivables and inventories with the normal development of business. In terms of net interest rate and roe, the net profit margin of sales during the period was 3.43%, an increase of 0.35 PCT compared with 2020; Roe (weighted) is 7.59%, which is 0.47 PCT higher than that in 2020.
The net cash flow from operating activities showed a net outflow state, and the asset liability ratio decreased year-on-year. During the reporting period, the net cash flow generated by the company’s operating activities was -12.643 billion yuan, which changed from the net inflow of the previous year to the net outflow. Assuming that the changed accounting policies were implemented in early 2020, the operating cash outflow in 2021 decreased by 59.31% year-on-year. At the end of the period, the monetary capital balance of the company was 104576 billion yuan, a decrease of 18.34% over the beginning of the year. The total amount of accounts receivable and notes receivable was 107733 billion yuan, a decrease of 3.44% over the beginning of the year. In terms of capital structure, the company’s asset liability ratio at the end of the period was 71.86%, down 0.70 PCT from the end of 2020, the lowest level in the same period since listing; After excluding advances received, the debt ratio was 66.11%, up 0.34 PCT year-on-year.
Newly signed contracts are growing rapidly, and the proportion of franchise assets is high. In 20201, the newly signed contract amount of the company was 1267912 billion yuan, 1.86 times of the revenue in 2021, with a year-on-year increase of 18.85%. Among them, new orders for domestic port construction (YoY + 27%), railway construction (YoY + 62%) and urban construction (YoY + 27%) increased significantly, and new orders for roads and bridges increased by 12% year-on-year. By the end of 2021, the amount of unfinished contracts under execution was 3128254 billion yuan, with sufficient order reserves and continuous optimization of structure, providing guarantee for the sustainable and steady development of the company. At the end of the period, the total intangible assets of the company were 249157 billion yuan, accounting for 17.91% of the assets, including 231417 billion yuan of franchise assets, accounting for 16.64% of the assets. By 2021, the company had 27 franchise projects in operation (another 19 equity participation projects), most of which were Expressway assets, with a cumulative investment of 185.1 billion yuan. In 2021, the operating income was 7.765 billion yuan. At present, the company has large-scale highway assets, and is expected to fully benefit from the continuous promotion of infrastructure REITs in the future, so as to improve financial indicators, expand financing channels and revalue assets.
Investment suggestion: the company is one of the leaders in the field of infrastructure construction in China. Based on the construction of roads, bridges and ports, the field of urban construction is developing rapidly. There are sufficient orders on hand and it is expected to continue to benefit from the release of market demand under the background of steady growth. At the same time, the company has a large scale of expressway operation assets. At present, China’s infrastructure REITs continues to promote, and the company is expected to fully benefit, help revitalize the stock assets, reduce the leverage ratio, and realize asset revaluation at the same time. It is predicted that the revenue growth rate of the company from 2022 to 2024 will be 11.8%, 11.5% and 10.0% respectively, the net profit growth rate will be 12.6%, 12.2% and 11.3% respectively, and the EPS will be 1.25 yuan, 1.41 yuan and 1.57 yuan respectively. Maintain the company’s “Buy-A” investment rating.
Risk tips: the epidemic control is less than expected, the policy promotion is less than expected, the macro-economy fluctuates sharply, the industry competition intensifies, the project progress is less than expected, overseas operation risks, project payment collection risks, etc.
