\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 170 Shanghai Construction Group Co.Ltd(600170) )
The steady growth of revenue performance is in line with expectations, and the dividend yield is attractive. The company announced that in 2021, the annual operating revenue was 281.1 billion yuan, an increase of 21.5% at the same time; The net profit attributable to the parent company was 3.77 billion yuan, an increase of 12.5% at the same time; Deduct non performance of RMB 2.77 billion, an increase of 7.7% at the same time. Quarterly, q1-4 single quarter revenue increased by 56.2% / 13.0% / 19.7% / 10.0% respectively; The net profit attributable to the parent company in a single quarter changed by + 13.4% / + 10.2% / + 58.6% / – 27.0% year-on-year respectively. The decline of Q4 performance was mainly due to the increase of R & D rate and impairment provision, and the income from changes in the fair value of shares held decreased significantly. In terms of business, construction / design consulting / building materials industry / real estate development / urban construction investment achieved revenue of 238.2/52/167139/1.3 billion yuan and yoy + 22.8% / – 3.0% / + 12.0% / + 119.5% / – 9.5% respectively. The high growth rate of real estate business is mainly due to the company’s acceleration of real estate project dematerialization and delivery during the reporting period; The core construction industry achieved steady growth. In the whole year, 442.5 billion yuan of new contracts were signed, an increase of 14.4% at the same time, of which 272.1/162.9/7.5 billion yuan of new orders were signed in Shanghai / other provinces / overseas markets, accounting for 61% / 37% / 2% of the total orders, an increase of 13% / 15% / 76% at the same time, and the regional market share was stable. The total amount of outstanding orders reached 459.6 billion yuan, with abundant orders on hand. The expected goal of the company in 2022 is to achieve an operating revenue of 305 billion yuan and a newly signed contract amount of 485 billion yuan, an increase of 8.5% and 9.6% respectively. In 2021, the company plans to pay 1.45 yuan for 10 shares, with a total dividend of 1.29 billion yuan, with a dividend rate of 34% and a dividend rate of 4.7%.
The profitability of the main construction industry has been steadily improved, and the acceleration of payment collection has significantly improved the cash flow. In 2021, the gross profit margin of the company was 9.43%, yoy-0.24 PCT, of which the gross profit margin of building construction / building materials industry / real estate development / design consulting / urban construction investment was yoy + 0.74 / – 2.24 / – 13.64 / + 0.59 / + 0.29 PCT, and the profit of real estate business fell sharply due to policy regulation, dragging down the overall gross profit margin; The profit level of the main construction industry increased steadily, mainly because the company continued to strengthen project lean management, and the effect of cost control measures gradually appeared. During the period, the expense rate was 7.21%, yoy + 0.01 PCT, of which the sales / management / R & D / financial expense rate was yoy-0.01 / – 0.06 / + 0.01 / + 0.07 PCT, which remained stable as a whole. The decline in the sales and management expense rate was mainly due to the gradual emergence of the benefits of business scale; The increase of financial expense rate is mainly due to the increase of interest expenditure caused by the expansion of financing demand. The impairment loss of assets (including credit) is about 850 million yuan, and the new provision is mainly the depreciation reserve of real estate projects. The investment income increased by 1.3 billion yuan, mainly due to the sale of Shengtang real estate and the recognition of 997 million yuan from the disposal of long-term equity investment. The net interest rate attributable to the parent company is 1.34%, yoy-0.11 PCT. The net operating cash inflow was 10.37 billion yuan, 10.05 billion yuan more than last year, mainly due to 1) Q4 accelerated project collection, with a net cash inflow of 22.1 billion yuan in a single quarter; 2) The ability of upstream bargaining and downstream payment collection was improved at the same time (the cash collection ratio / cash payment ratio was 98% / 92%, yoy + 2 / – 2 PCT respectively).
The scale of the six new businesses continued to expand, and the new nuclear energy infrastructure business was progressing smoothly. In 2021, the company’s six emerging businesses of urban renewal / water conservancy and water affairs / ecological environment / industrial construction / construction service industry / new infrastructure signed new contracts of RMB 23 / 191 / 80 / 276 / 34 / 16.1 billion respectively, with an increase of Na / 38% / 25% / 50% / 30% / Na. The total revenue increased by 10 billion yuan compared with that in 2020. The scale expanded steadily and the business expansion process was smooth. Specifically, 1) urban renewal: newly undertake major urban renewal projects such as the repair and transformation of Jinling East Road and the renewal of Zhangyuan, Shimen 1st Road, Jing’an, and further expand the market influence; 2) Ecological environment: the group integrated and reorganized the establishment of environmental science and technology, laid out the whole industrial chain of soil remediation, and made breakthroughs in the business fields of waste soil resource utilization, double carbon consulting, equipment and pharmaceutical research and development. 3) New nuclear energy infrastructure: the nuclear energy system experimental platform of Wuwei thorium based molten salt reactor is completed and awaiting acceptance; The installation technologies of experimental reactor such as high-clean assembly of nuclear reactor core components and high-precision positioning blind assembly have been overcome, the off-line assembly and integrated hoisting of molten salt experimental reactor body have been completed, and the owner has been actively cooperated in the preparation of pre operation test.
Investment suggestion: we expect the net profit attributable to the parent company in 22-24 years to be 3.9/4.5/4.9 billion yuan respectively, with a year-on-year increase of 4% / 15% / 10%, EPS of 0.44/0.51/0.55 yuan respectively, and the corresponding PE of the current stock price is 7.0/6.1/5.6 times respectively, maintaining the “buy” rating.
Risk tips: real estate policy risk, asset impairment risk, new business development does not meet expectations, etc.
