\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 390 China Railway Group Limited(601390) )
Event: the company released the annual report of 2021. In 2021, the company achieved a total revenue of 1073272 billion yuan, a year-on-year increase of 10.11%; The net profit attributable to the parent company was 27.618 billion yuan, a year-on-year increase of 9.65%; The net profit attributable to the parent company after deduction was RMB 26.061 billion, with a year-on-year increase of 19.35%.
The performance continued to grow steadily. In 2021, the company achieved a total revenue of 1073272 billion yuan, a year-on-year increase of 10.11%. Among them, infrastructure construction, survey, design and consulting services, engineering equipment and parts manufacturing, real estate development and other businesses achieved revenue of 923436 176.04 238.31 50.249 58.153 billion yuan respectively, with a year-on-year increase of 9.4% 8.75% 3.28% 1.92% 38.22% respectively. Infrastructure construction is the largest source of revenue of the company, among which railway, highway, municipal and other businesses achieved revenue of 2159.1 181708 525818 respectively, Year on year changes were -0.33% 18.39% 10.93%. By region, the revenue of domestic regions reached 1018484 billion yuan, a year-on-year increase of 9.79%; Overseas regions achieved revenue of 54.787 billion yuan, a year-on-year increase of 16.36%. In 2021, the gross profit margin and net profit margin of the company were 10% and 2.85% respectively, with year-on-year changes of 0.85pct and -0.05cpt respectively. The operating net cash flow was 13.069 billion yuan, with a year-on-year inflow of 17.925 billion yuan, which was mainly due to the increase in the investment scale of infrastructure investment projects in the financial asset model and the moderate increase in the land reserve of real estate business.
Newly signed contracts increased by 4.7%, and the structure of business segments continued to be optimized. In 2021, the newly signed contract amount of the company was 272932 billion yuan, a year-on-year increase of 4.7%. Among them, infrastructure construction, survey, design and consulting services, engineering equipment and parts manufacturing, real estate development and other businesses signed new contracts of 241668 205.5 612.8 580.3 172.78 billion yuan respectively, with a year-on-year change of 10.7% – 20.5% 12.9% – 15.4% – 37.0%. In the traditional infrastructure market, the company continues to maintain a leading position, among which the railway market continues to take the lead, and the housing construction, municipal and urban rail markets develop steadily; New progress has been made in emerging fields such as water conservancy and hydropower, clean energy, port and waterway, offshore wind power, pumped storage and water transfer projects, of which about 44 billion yuan has been contracted for 5g projects, wind power and photovoltaic projects and ecological governance projects. New orders in port and waterway and Airport engineering markets increased by 76.9% and 54.6% respectively year-on-year, laying a foundation for the company to promote the “second curve” operation.
Layout mineral resources and increase performance. The company has obtained a number of mineral resources projects by means of acquisition and M & a through “resource finance” and “resource for project”. At present, the mineral products produced and sold by the company include copper, cobalt, molybdenum, lead, zinc and other concentrates, cathode copper and cobalt hydroxide. In 2021, the prices of some mineral resources products were at historic highs. China Railway Resources Group Co., Ltd., a wholly-owned subsidiary of the company responsible for this business segment, achieved a net profit of 3.427 billion yuan, a year-on-year increase of 51.01%.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 11774591283431 billion yuan respectively, with a year-on-year increase of 10% / 9%, the net profit attributable to the parent company will be 30.297/33.054 billion yuan, with a year-on-year increase of 9.7% / 9.1%, EPS per share will be 1.23/1.35, and PE corresponding to the current stock price will be 4.91/4.50 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.
