\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 502 Anhui Construction Engineering Group Corporation Limited(600502) )
Matters: the company released the first quarterly report of 2022. During the reporting period, the company realized an operating revenue of 14.53 billion yuan, a year-on-year increase of 2.96%; The net profit attributable to the parent company was 312 million yuan, a year-on-year increase of 7.24%; The net profit attributable to the parent company after deduction was 289 million yuan, a year-on-year increase of 2.74%; Earnings per share was 0.18 yuan, a year-on-year increase of 5.88%.
The number of newly signed orders continued to increase, and the profitability was improved. The company achieved an operating revenue of 14.53 billion yuan in Q1 of 2022, with a year-on-year increase of 2.96%. Under the condition of high base growth in the first quarter of last year, the company still achieved steady growth. In terms of orders, the company fully benefited from the national steady growth policy and continued to develop new orders at a high speed. In the first quarter of 2022, the company’s total newly signed orders amounted to 32.988 billion yuan, an increase of 85.13% year-on-year. On the basis of the 118.93% increase in newly signed orders in 2021q1, the company continued to achieve high growth, and the amount of newly signed orders reached 2.27 times of the revenue in 2022q1. It is expected that in the future, with the completion and carry over of order contracts, it will continue to help the rapid release of the company’s performance. At the same time, the order structure of the company continued to be optimized, focusing on infrastructure orders with high gross profit. In 2022, the accumulated newly signed contract amount of Q1 infrastructure engineering business was 20.858 billion yuan, a year-on-year increase of 81.93%, of which the newly signed contract amount of highway and bridge was 13.937 billion yuan, a year-on-year increase of 196.03%. The company’s overall gross profit margin in Q1 in 2022 was 10.83%, an increase of 1.60 PCT year-on-year, the highest level of gross profit margin in the same period of recent five years; In 2022, Q1 net profit achieved 2.75%, increased by 0.19 PCT year-on-year, and also reached the highest level of net interest rate in the same period in recent five years.
The operating cash expenditure increased and the impairment provision basically returned to normal. In terms of cash flow, as of the end of the first quarter of 2022, the net cash flow from the company’s operating activities was -4.078 billion yuan, a year-on-year decrease of 39.09%, mainly due to the increase in the company’s net expenditure on PPP projects and the decrease in the net inflow of real estate. In terms of impairment provision, the company’s impairment provision in 2021 was sufficient to ensure that the company was young in 2022. In Q1 of 2022, the company accrued asset impairment loss and credit impairment loss of 09 million yuan and – 82 million yuan respectively. The impairment loss had little impact on the company’s performance. In Q1 of 2022, the company realized a net profit attributable to the parent company of 312 million yuan, a year-on-year increase of 7.24%. With the rapid growth of new orders signed by the company, the superimposed order structure continued to be optimized, In the next few years, the company’s performance release will still maintain a high growth rate.
Increase investment in prefabricated buildings and have rich experience in hydropower operation. In the field of prefabricated buildings, the company actively responds to the call of national policies, actively arranges green buildings and vigorously develops prefabricated buildings. In August 2015, the company completed and put into operation Feidong PC base, with a design annual output of 160000 cubic meters of PC prefabricated components, which has accumulated rich experience for the development of the company’s assembly industry. In recent years, the company has continued to increase investment in the assembly industry. In 2020, Wushan PC base was completed and put into operation, adding 50000 m3 of PC construction and 50000 m3 of tube production capacity; In 2021, Bengbu PC base phase I and Changfeng Wushan base will be completed and put into operation, adding 160000 m3 of PC capacity and 110000 m3 of rail transit pipe capacity; In January 2022, the company’s Wuhu steel structure base was put into operation, adding 80000 tons of steel structure capacity. At present, the company’s Tongling PC base is under construction. It is expected to enter the trial operation state in the second quarter of 2022, with a design annual capacity of 150000 m3. In the field of hydropower operation, the company has nearly 20 years of experience in the field of hydropower operation. Since 2016, the company has operated and managed 7 hydropower stations such as Bailianya, Liubo, Danzhu River and Dongyue River, with a total installed capacity of 246100 kW. It has rich experience in hydropower station investment, construction, operation, M & A and a mature operation team. At present, the state vigorously develops pumped storage, defines the pricing mechanism of pumped storage, and encourages social capital to participate in the investment and operation of pumped storage power stations. The company is expected to lay out the construction and operation of pumped storage and increase the construction of green energy in the future.
Profit forecast and investment suggestions: structural optimization contributes to rapid growth, adds new impetus to Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) layout, and gives a “overweight-a” rating. It is estimated that the operating revenue of the company from 2022 to 2024 will be 85.608 billion yuan, 98.449 billion yuan and 110263 billion yuan respectively, with a year-on-year increase of 20.00%, 15.00% and 12.00% respectively; The net profit attributable to the parent company was 1.475 billion yuan, 1.846 billion yuan and 2.213 billion yuan respectively, with a year-on-year increase of 34.64%, 25.15% and 19.88% respectively; EPS is 0.86 yuan, 1.07 yuan and 1.29 yuan respectively, dynamic PE is 7.5 times, 6.0 times and 5.0 times respectively, and dynamic Pb is 1.2 times, 1.1 times and 0.9 times respectively. The company is a large state-owned construction enterprise in the province, which fully benefits from the steady growth policy. The newly signed orders have increased rapidly, the order structure has been continuously optimized, and the performance release is expected to accelerate. At the same time, the company actively arranges green buildings and vigorously develops the assembly industry. The “cross” capacity layout is taking shape, and the assembly industry is expected to become a new performance growth point of the company. In addition, the company makes full use of the advantages of investment, financing and construction integration of hydropower stations and professionals, and is expected to add green energy, and the pumped storage industry is expected to be put on the agenda. Optimistic about the growth of the company’s main business and Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) layout, improve the valuation of the company, give the rating of “overweight-a”, the target price is 6.88 yuan, corresponding to 8.03 times of dynamic PE in 2022. ■ risk warning: policy is not as expected, order execution is slow, project payment collection risk, new business development is blocked, etc
