\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 502 Anhui Construction Engineering Group Corporation Limited(600502) )
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 71.340 billion yuan, a year-on-year increase of 25.22%; The net profit attributable to the parent company was 1.096 billion yuan, a year-on-year increase of 34.32%; The net profit attributable to the parent company after deduction was 1.031 billion yuan, a year-on-year increase of 36.40%.
The revenue growth rate of infrastructure construction and investment is relatively high. In 2021, the company achieved a revenue of 71.340 billion yuan, a year-on-year increase of 25.22%. Among them, the revenue from housing construction and installation was 18.711 billion yuan, a year-on-year increase of 12.81%; Infrastructure construction and investment achieved revenue of 34.233 billion yuan, a year-on-year increase of 48.90%; Commercial housing sales achieved a revenue of 7.144 billion yuan, a year-on-year decrease of 9.82%; Other businesses achieved a revenue of 9.989 billion yuan, a year-on-year increase of 18.55%. In 2021, the net profit attributable to the parent company was 1.096 billion yuan, with a year-on-year increase of 34.32%; The gross profit margin and net profit margin were 11.18% and 1.98% respectively, with year-on-year changes of -0.44% and -0.15pct respectively; The net operating cash flow was -5.492 billion yuan, 836 million yuan more than last year, mainly due to the increase in investment in PPP projects.
The newly signed orders of engineering construction business increased by 21%, laying a foundation for future development. In 2021, the total amount of newly signed contracts of the company’s engineering construction business was 75.904 billion yuan, a year-on-year increase of 21%. Among them, the newly signed contract amount in Hefei market was 19.481 billion yuan, a year-on-year increase of 60.67%; The newly signed contracts in markets outside the Province amounted to 18.629 billion yuan, a year-on-year increase of 47.90%. Newly signed orders for prefabricated buildings amounted to 755 million yuan, a year-on-year increase of 238%. The leading role of the company’s investment is prominent, and the company has successfully implemented three regional development projects in Zongyang, Shucheng and Feixi, with a total investment of 7.7 billion yuan; The Huaibei section of Xu Huai Fu expressway has become the first expressway project independently invested and constructed, with an investment of 4.4 billion yuan. The future development of the company is guaranteed.
Diversified layout for development. In addition to the main business of engineering construction, the company actively carries out diversified layout. In 2021, the growth of the testing sector accelerated, and the three companies of the second testing station, road and bridge testing and Huantong testing achieved a total revenue of 473 million yuan. Five new assembly bases have been put into operation. The hydropower business owns and operates 7 hydropower stations, with a total installed capacity of 246100 kW and an equity installed capacity of 188100 kW. The annual design power generation is about 1 billion kwh. All the hydropower stations have been completed for power generation. The hydropower stations are located in Huoshan County, Jinzhai County, Anhui Province and Gongshan County, NuJiangZhou, Yunnan Province. In 2021, the online power of hydropower business was 710 million kWh and the revenue was 160 million yuan. In the field of building materials, the subsidiary Anhui building materials technology, as the company’s centralized procurement platform for building materials, helps the company’s construction business reduce costs and increase efficiency. At the same time, it actively develops business abroad and continues to explore markets outside the province.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be RMB 84.181/97.650 billion respectively, with a year-on-year increase of 18% / 16%, the net profit attributable to the parent company will be RMB 1.293/1.513 billion, with a year-on-year increase of 18% / 17%, EPS per share will be 0.75/0.88, corresponding to PE of the current stock price of 6.2/5.3 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.
