\u3000\u3 Shengda Resources Co.Ltd(000603) 357 Anhui Transport Consulting & Design Institute Co.Ltd(603357) )
Core view:
Event: the company released the annual report of 2021. The company achieved an operating revenue of 2.357 billion yuan, a year-on-year increase of 23.41%; The net profit attributable to the parent company was 388 million yuan, a year-on-year increase of 6.9%.
The performance improved steadily as scheduled, and the asset liability ratio and period expense ratio decreased. In the whole year of 2021, the company achieved an operating revenue of 2.357 billion yuan, a year-on-year increase of 23.41%; Among them, the revenue of survey and design business (survey and design, consulting and R & D, test and testing) was 1.495 billion yuan, a year-on-year increase of 7.68%; The revenue of engineering management business was 124 million yuan, a year-on-year increase of 43.25%; The revenue from EPC and other businesses was 734 million yuan, a year-on-year increase of 69.60%. The net profit attributable to the parent company was 388 million yuan, a year-on-year increase of 6.9%; The company achieved a net profit of 367 million yuan, a year-on-year increase of 6.65%. During the reporting period, the net operating cash flow of the company was 170 million yuan, a year-on-year decrease of 235 million yuan, mainly due to the higher salary and project purchase payment paid in the current period than in the same period of last year. At the end of the reporting period, the company’s asset liability ratio was 34.26%, a year-on-year decrease of 1.43pct. At the end of the reporting period, the company’s gross profit margin was 33.08%, a year-on-year decrease of 6.01pct. The net interest rate was 16.56%, a year-on-year decrease of 2.49pct. The expense rate during the period was 11.89%, a year-on-year decrease of 0.42pct.
The number of newly signed contracts increased steadily, and the general contracting of projects developed at a high level. During the reporting period, the company signed 3.953 billion yuan of new contracts, a year-on-year increase of 6.44%, and 6.639 billion yuan of orders on hand, a year-on-year increase of 27.67%. The total amount of newly signed contracts in the province is 3.253 billion yuan, and the amount of newly signed contracts outside the province is 700 million yuan. The newly signed contract amount of survey and design business totaled 2.463 billion yuan, a year-on-year increase of 16.14%. The newly signed contract amount of engineering management projects totaled 171 million yuan, a year-on-year increase of 12.50%. The total amount of newly signed EPC contracts was 1.319 billion yuan, with a revenue of 734 million yuan, a year-on-year increase of 69.60%, and the overall development level remained high.
Traffic construction in Anhui Province has helped development, and the expansion outside the province has yielded fruitful results. In 2021, Anhui’s investment in fixed assets increased by 9.4% over the previous year, 4.5pct higher than that of the whole country, ranking ninth in the country and second in the Yangtze River Delta. Under the guidance of the “two new and one heavy” policy, the construction of a large number of major transportation and water conservancy projects was accelerated. In the whole year, the investment in transportation fixed assets was 94.52 billion yuan, a year-on-year increase of 13.2%, an increase of 19.9% over the same period in 2019, and 126.0% of the annual plan target was achieved. Among them, the completed investment of expressway was 37.61 billion yuan, a year-on-year increase of 60.2%; Ordinary national and provincial trunk lines completed an investment of 33.18 billion yuan, a year-on-year increase of 2.3%. As a leading enterprise of traffic design in Anhui Province, the company is expected to benefit from the rapid development of traffic construction in the province in the future. The company’s subsidiaries Sichuan Tianshui, Hangzhou Tianda, Guangdong branch and Yunnan branch seize the development opportunities and actively expand the regional market outside the province. The total new contract amount of Yunnan Guichuan, Yangtze River Delta and Guangdong, Hong Kong and Macao Bay area is 341 million yuan, and the expansion outside the province has made remarkable achievements.
Investment suggestion: it is estimated that the company’s EPS will be 1.00 yuan / share in 2022, and the corresponding dynamic P / E ratio will be 9.83 times respectively, 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.
