\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 668 China State Construction Engineering Corporation Limited(601668) )
Core view:
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 1891339 billion yuan, a year-on-year increase of 17.11%; The net profit attributable to the parent company was 51.408 billion yuan, a year-on-year increase of 14.43%; The net profit attributable to the parent company after deduction was 49.490 billion yuan, a year-on-year increase of 16%.
The revenue reached the best level in history, and the cash dividend exceeded 10 billion for the first time. In 2021, the company achieved a revenue of 1891.3 billion yuan, with a year-on-year increase of 17.1%, creating the best performance in history. The company gave full play to the advantages of the whole industrial chain layout, integrated into the national service strategy, continued to do a good job in marketing and project performance management, constantly cultivated new market growth points, and achieved steady growth in overall revenue. Among them, housing construction engineering / infrastructure construction and investment / real estate development and investment / survey and design / other businesses achieved revenue of 1147 / 4100 / 3309 / 108 / 28 billion yuan respectively, with a year-on-year change of 14.6% / 17.7% / 22.0% / 2.0% / 31.3% respectively. The net profit attributable to the parent company was 51.408 billion yuan, a year-on-year increase of 14.4%; The net operating cash flow was 14.361 billion yuan, a decrease of 29.2% over the same period last year, mainly due to the increase in project funds, real estate development funds and purchase funds paid in the current period. The cash dividend to be distributed in 2021 is about 10.49 billion yuan, accounting for 20.4% of the net profit attributable to the parent company in the current period. The proportion of cash dividend has increased for three consecutive years, exceeding 10 billion yuan for the first time.
The newly signed contracts increased by 10.3%, and the newly signed contracts for infrastructure grew rapidly. In 2021, the total amount of new contracts signed by the company reached 35295 billion yuan, a year-on-year increase of 10.3%. Among them, the newly signed contract amount of construction business / real estate business was 31074 / 422.1 billion yuan respectively, with a year-on-year change of + 12.1% / – 1.5%. In the construction business, the newly signed contract amount of housing construction was 2250.6 billion yuan, an increase of 8.3% year-on-year. Adhering to the marketing strategy of “high-end market, high-end customers and high-end projects”, it has more solid advantages in medium and high-end housing construction fields such as super high-rise buildings, industrial plants, educational facilities and medical and health facilities; The newly signed contracts for infrastructure amounted to 843.9 billion yuan, an increase of 24.1% year-on-year. Focusing on key areas of infrastructure construction, we implemented classified policies and continued to work, and won a number of major projects; The newly signed contract amount of survey and design was 12.9 billion yuan, a year-on-year decrease of 9.8%. It continued to make efforts in advantageous sectors such as urban planning, airport transportation and cultural venues, and contracted a number of representative design consulting businesses.
In the context of steady growth, the role of investment is prominent, and the leader is expected to benefit. At present, under the background of repeated epidemics in China and severe and complex international situation, investment is expected to play a greater role in achieving stable economic growth. In the first quarter of 2022, infrastructure investment (excluding power, heat, gas and water production and supply industries) increased by 8.5% year-on-year, and the growth rate increased by 0.4pct month on month. As a leading enterprise in the construction industry, the company signed more than 3 trillion yuan of new orders in 2021, which is expected to benefit from future development.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 2175 / 2477.4 billion yuan respectively, with a year-on-year increase of 15% / 13.9%, the net profit attributable to the parent company will be 57.628/63.967 billion yuan, with a year-on-year increase of 12.1% / 11%, and the EPS per share will be 1.37/1.52 yuan, corresponding to 4.3 / 3.9 times of the current share price PE 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.
