\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 800 China Communications Construction Company Limited(601800) )
Q1 performance increased by 18% at the same time, exceeding expectations, showing strong business resilience. In 2022q1, the company realized an operating revenue of 172.1 billion yuan, an increase of 13.3% at the same time; The net profit attributable to the parent company was 5.09 billion yuan, an increase of 17.7% at the same time. In Q1, under the high base and repeated epidemic, the company’s revenue performance still achieved steady growth and showed strong business resilience. The performance growth rate was slightly higher than the income, mainly due to the gradual improvement of lean management, and the cost rate decreased significantly. Since the beginning of the year, the steady growth policy of infrastructure construction has continued to increase. The newly signed contract amount of Q1 of the company has reached a new high in a single quarter on the basis of an increase of 80% in the same period last year. At present, the company has abundant orders on hand. With the control of the epidemic and the acceleration of order execution rhythm, the annual profit is expected to continue to grow steadily.
The gross profit margin decreased slightly, the expense rate decreased, and the net profit margin increased slightly. The gross profit margin of 2022q1 company is 11.66%, with a year-on-year decrease of 0.23 PCT, which is expected to be mainly affected by the price fluctuation of raw materials and the increase of Engineering epidemic prevention costs. During the period, the expense rate was 6.45%, with a year-on-year decrease of 0.69 PCT, of which the sales / management / R & D / financial expense rate changed by -0.02 / – 0.79 / + 0.32 / – 0.21 PCT respectively year-on-year. The management expense rate decreased significantly, mainly due to the continuous strengthening of lean management and the gradual improvement of operating efficiency; The decrease of financial expense rate is mainly due to the increase of interest income in the current period. The impairment loss of assets (including credit) was 70.7 million yuan more than that in the same period last year, mainly due to the reclassification of the quality assurance deposit in long-term receivables due to the change of accounting policies. The income tax rate was 21.35%, with a year-on-year increase of 2.97 PCT, mainly due to more taxes paid by overseas subsidiaries. The net interest rate attributable to the parent company was 2.96%, with a year-on-year increase of 0.11 PCT. The net outflow of Q1 operating cash flow was 33.36 billion yuan, basically the same as that in the same period last year.
The joint venture with leading wind power enterprises to establish an offshore wind power company is expected to create a new growth point. The company announced that the subsidiary Sanhang Bureau, together with the related party CCCC property investment (member of the controlling shareholder CCCC group), China Three Gorges Renewables (Group) Co.Ltd(600905) , Datang International Power Generation Co.Ltd(601991) , Guohua investment and vision energy, jointly invested about 2.5 billion yuan to establish an offshore wind power company in the proportion of 37%: 20%: 20%: 10%: 10%: 3%. Among them, the Third Navigation Bureau invested a total of 925 million yuan in currency and in kind, holding 37% of the equity of offshore wind power company, and CCCC holds 57% of the shares in total. The business scope of the newly established company is offshore wind power operation and maintenance and offshore wind power equipment investment. With rich offshore operation experience and advanced heavy offshore equipment, the company occupies nearly 50% of the market share in the offshore wind power installation market and has a stable leading position. The subordinate Third Navigation Bureau has an industry-leading position in offshore construction, foundation and fan equipment testing, post operation and maintenance services and other business fields. The company disclosed that during the 13th Five Year Plan period, it has overcome key technologies such as offshore wind turbine installation and equipment, wind power foundation construction and equipment, offshore wind farm maintenance, new wind power materials and durability. The establishment of subsidiaries through cooperation with leading wind power enterprises can effectively coordinate various resources related to offshore wind power within the group, strengthen industrial coordination, and enable the company to continue to maintain strategic initiative in the development and changes of offshore wind power industry. It is expected to extend to the front and back of the industrial chain, including complete machine manufacturing, wind power investment, wind power operation and maintenance, so as to build an all-round industrial chain advantage in the field of wind power, and is expected to create a new growth point.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 21.2/241/27 billion yuan respectively, with a year-on-year increase of 18% / 14% / 12%, EPS of 1.31/1.49/1.67 yuan respectively, and the corresponding PE of the current stock price is 8.2/7.2/6.4 times respectively, maintaining the “buy” rating.
Risk tip: the stable growth policy of infrastructure fails to meet expectations, the offshore wind power business fails to meet expectations, asset impairment risk, overseas operation risk and repeated epidemic risk.
