\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 668 China State Construction Engineering Corporation Limited(601668) )
Matters: the company released its annual report for 2021, and achieved an operating revenue of 1.89 trillion yuan in 2021, with a year-on-year increase of 17.11%; The net profit attributable to the listed company was 51.408 billion yuan, a year-on-year increase of 1.408 billion yuan; Realize basic eps1 25 yuan / share. A cash dividend of 2.50 yuan (tax included) will be distributed for every 10 shares, with a cash dividend ratio of 20.40%.
The growth of operating revenue accelerated, and all sectors achieved positive growth. The company achieved 1.89 trillion yuan in 2021, a record high, with a year-on-year increase of 17.11%, and the growth rate increased by 3.36 PCT over the previous year. From the perspective of business type, the company’s revenue from real estate construction, infrastructure, real estate and survey and design business has achieved positive growth year-on-year, with revenue of 114786 billion yuan, 409977 billion yuan, 330943 billion yuan and 10.821 billion yuan respectively, yoy + 14.60%, + 17.7%, + 22.0% and + 2.0%, of which the revenue growth of infrastructure sector has significantly increased by 8.20 PCT year-on-year. The proportion of revenue of each business is: 60.65% (year-on-year -0.34 PCT), 21.68% (year-on-year + 0.11 PCT), 17.50% (year-on-year + 0.70 PCT) and 0.57% (year-on-year -0.09 PCT). The proportion of revenue of each business is stable as a whole.
The overall gross profit margin was improved, the net profit attributable to the parent company was accelerated, and the operation efficiency was improved. During the period, the company’s comprehensive gross profit margin reached 11.33%, an increase of 0.50 PCT compared with 2020, mainly due to the year-on-year increase in the gross profit margin of real estate construction and infrastructure business. The gross profit margins of main businesses during the period were: real estate construction 7.80% (year-on-year + 1.10 PCT), infrastructure 10.4% (year-on-year + 1.9 PCT), real estate business 21.1% (year-on-year – 5.1 PCT) and survey and design 21.1% (year-on-year – 3.1 PCT). The gross profit margin of the company’s real estate and survey and design business decreased. In terms of period expenses, the expense rate in 2021 was 4.86%, with a year-on-year increase of 0.67 PCT, mainly due to the year-on-year increase of 0.53 PCT and 0.11 PCT in R & D expense rate (2.11%) and financial expense rate (0.59%) respectively. During the period, the profit and loss of minority shareholders increased by 1.22% year-on-year, significantly slower than that of last year (2020yoy + 21.96%), and the net profit attributable to the parent increased by 14.43% year-on-year, an increase of 7.12 PCT over the same period last year. In terms of net interest rate and roe, the net profit margin of sales during the period was 4.11%, a decrease of 0.28 PCT compared with 2020; Roe (weighted) is 15.93%, which is 0.39 PCT higher than that in 2020. The company’s total asset turnover rate has increased by 0.07 times year-on-year, and the operation efficiency has been improved.
The operating cash flow maintained a net inflow, and the asset liability ratio continued to decline. During the reporting period, the net cash flow generated by the company’s operating activities was 14.361 billion yuan, maintaining a net inflow. The company’s cash to cash ratio was 107.8%, an increase of 0.3 percentage points year-on-year, and the net cash flow from operating activities decreased by 29.16% year-on-year, mainly due to the increase in project funds, real estate development funds and purchase loans. At the end of the period, the company’s monetary capital balance was 327461 billion yuan, an increase of 13.71% over the beginning of the year, the total amount of accounts receivable and notes receivable was 107733 billion yuan, an increase of 3.13% over the beginning of the year, and the contract assets were 215697 billion yuan, an increase of 52.91% over the beginning of the year. In terms of capital structure, the company’s asset liability ratio at the end of the period was 73.21%, down 0.46 PCT from the end of 2020, the lowest level in the same period since listing.
The volume of newly signed contracts is sufficient, which is expected to benefit from steady growth and marginal improvement of real estate policies, and the proportion of dividends will continue to increase. According to the contents of the annual report, the newly signed contract amount of the company in 2021 was 35295 billion yuan, which was 1.87 times of the revenue of the year, with a year-on-year increase of 10.3%. Among them, the newly signed contracts of housing construction and infrastructure construction increased by 8.3% and 24.1% respectively, and the newly signed contracts of infrastructure construction increased rapidly. At present, the steady growth policy continues to increase, the local construction investment plans are huge, and the acceleration of infrastructure investment is expected. The company is the leader of the central enterprise of basic housing construction, with strong comprehensive strength, obvious project contracting advantages, orders and performance are expected to continue to grow. At the same time, the acceleration of infrastructure business may help to continuously improve the profitability. The company owns two major real estate brands, CNOOC real estate and CSCEC real estate. The brand value of CNOOC real estate has always been in the leading position in China’s real estate industry. CSCEC real estate’s main business is middle-end real estate development in first and second tier cities and localized operation of real estate projects in third and fourth tier cities. The company has formed unique industrial chain advantages in the field of real estate, and is expected to usher in valuation repair and asset revaluation under the background of marginal improvement of policies in the real estate industry. The proportion of cash dividends of the company has continued to increase in the past three years. In 2021, the cash dividends exceeded 10 billion yuan for the first time, with a dividend proportion of 20.40%, and 21 / 22pe only 4.5 / 4.1 times. The undervalued value is high, and the long-term investment value of the leader of red central enterprises is significant.
Investment suggestion: it is predicted that the revenue growth rate of the company from 2022 to 2024 will be 11.5%, 10.0% and 9.0% respectively, the net profit growth rate will be 10.2%, 9.4% and 9.3% respectively, the EPS will be 1.35 yuan, 1.48 yuan and 1.62 yuan respectively, and the PE will be 4.5, 4.1 and 3.7 times respectively. Maintain the company’s “Buy-A” investment rating.
Risk tips: epidemic control is less than expected, policy promotion is less than expected, macro-economy fluctuates sharply, industry competition intensifies, project progress is less than expected, overseas operation risk, project payment collection risk, etc.
