\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 186 China Railway Construction Corporation Limited(601186) )
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 102001 billion yuan, a year-on-year increase of 12.05%; The net profit attributable to the parent company was 24.691 billion yuan, a year-on-year increase of 10.26%; The net profit attributable to the parent company after deduction was 22.43 billion yuan, a year-on-year increase of 9.07%.
The revenue exceeded trillion, and the revenue of all business segments increased. In 2021, the company achieved a revenue of 102001 billion yuan, a year-on-year increase of 12.05%, breaking trillion yuan for the first time, mainly due to the growth of engineering contracting, industrial manufacturing and real estate business during the reporting period. By sector, the revenue of engineering contracting business, survey and design consulting business, industrial manufacturing business, real estate development business and material logistics business reached 893.82 193.2 218.62 506.62 103723 billion yuan respectively, with a year-on-year increase of 9.9% 5.2% 21.13% 23.78% 35.37% respectively. In 2021, the net profit attributable to the parent company was 24.691 billion yuan, with a year-on-year increase of 10.26%. The gross profit margin and net profit margin were 9.6% and 2.87% respectively, with a year-on-year increase of 1.04 PCT and 0.05 PCT respectively. The net cash flow from operating activities was -7.304 billion yuan, a decrease of 47.413 billion yuan compared with the same period last year, mainly due to the increase in cash paid for purchasing goods and receiving labor services during the reporting period.
Newly signed contracts increased by 10.39%, and the growth rate of newly signed contracts for material logistics was higher. In 2021, the company signed 2819652 billion yuan of new contracts, with a year-on-year increase of 10.39%. Among them, the newly signed contracts for engineering contracting amounted to 241504 billion yuan, a year-on-year increase of 8.54%; The newly signed contract amount of survey, design and consultation was 26.555 billion yuan, a year-on-year increase of 17.74%; The newly signed contract amount of industrial manufacturing was 34.084 billion yuan, a year-on-year decrease of 1.24%; The newly signed contract amount of material logistics was 181.95 billion yuan, an increase of 51.12% year-on-year, mainly due to the company’s strengthening of centralized procurement and improving the service level of the supply chain; The newly signed real estate contracts amounted to 143225 billion yuan, a year-on-year increase of 13.20%. In the engineering contracting sector, the newly signed contract amount of railway engineering was 376471 billion yuan, a year-on-year increase of 30.17%, mainly due to the start of national key construction projects. The company gave full play to its competitive advantages in the industry and ensured the maximization of orders.
Under the background of steady growth, infrastructure investment welcomes opportunities. This year’s economic work should adhere to the principle of stability and seek progress while maintaining stability. On March 29, the executive meeting of the State Council pointed out that we should pay close attention to issuing the remaining special debt quota. The quota issued in advance last year should be issued before the end of May and this year before the end of September. Under this background, infrastructure investment is expected to rebound. From January to February 2022, infrastructure investment (excluding power, heat, gas and water production and supply industries) increased by 8.1% year-on-year. As a central construction enterprise, the company will benefit from the recovery of infrastructure investment.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 11322111245432 billion yuan respectively, with a year-on-year increase of 11% / 10%, the net profit attributable to the parent company will be 27.16/29.604 billion yuan, with a year-on-year increase of 10% / 9%, the EPS per share will be 2.00/2.18, and the PE corresponding to the current stock price will be 3.84/3.53 times respectively, maintaining the “recommended” rating.
Risk warning: the risk of intensified market competition; Risk of covid-19 epidemic affecting project progress; The risk that the recovery of accounts receivable is less than expected.
