\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 800 China Communications Construction Company Limited(601800) )
Event:
The company released the first quarterly report of 2022, and 22q1 achieved a 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; The net profit attributable to the parent company after deducting non profits was 4.93 billion yuan, an increase of 17.2% at the same time.
At the same time, the company announced to jointly invest with CCCC industrial investment to establish an offshore wind power company: the company’s subsidiary, the Third Navigation Bureau, and its related parties, CCCC industrial investment and 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. Among them, the Third Navigation Bureau invested a total of 925 million yuan in currency and in kind, holding 37% equity of offshore wind power company.
Comments:
Revenue growth was resilient enough, and the newly signed single ring ratio increased significantly to achieve a “good start”: 2022q1 company achieved revenue of 172.1 billion yuan, an increase of 13.3% at the same time, and still achieved double-digit growth on the basis of last year’s high base. In 2022q1, the newly signed contract amount of the company was 430.7 billion yuan, with a year-on-year increase of + 4.9% and a month on month increase of + 64.9%, achieving 30% of the annual target (calculated as an increase of 11.8% on the basis of 1267912 billion yuan in 2021). Among them, the newly signed orders of infrastructure construction / infrastructure design / dredging business / other businesses were 3793 / 165 / 325 / 2.4 billion yuan respectively, with an increase of 5.9% / 25.2% / – 10.5% / – 18.7% respectively.
The profitability was generally stable and the expense rate was well controlled during the period: in 2022q1, the company’s comprehensive gross profit margin was 11.7%, an increase of -0.2pct, which remained stable compared with the same period last year. During the comprehensive period, the expense rate was 6.5%, with an increase of 0.7pct, of which the sales / management / Finance / R & D expense rate was 0.2% / 2.5% / 1.1% / 2.6% respectively, with an increase of -0.02 / – 0.8 / – 0.2 / 0.3 percentage points. The increase in R & D expense rate was mainly due to the company’s increasing R & D efforts. In 2022q1, the net operating cash flow of the company was – 33.36 billion yuan, which was mainly due to the fact that the Accounting Standard No. 14 standardized the PPP project contract, resulting in the difference in the presentation of cash flow from operating activities in this period from the same period of last year.
Establish a joint venture Haifeng Company to consolidate the leading position of Haifeng: the company entered the field of offshore wind power installation and maintenance earlier, has rich offshore construction experience and excellent operation equipment, and has absolute advantages in this field. The joint establishment of offshore wind power company this time will give full play to the leading position of the Third Navigation Bureau in the business fields of offshore construction, operation, wind turbine equipment detection and later operation and maintenance services, build the brand and competitiveness of offshore wind power industry, and play a positive role in the company’s large-scale and refined market.
Optimistic about the revaluation of the company’s value by the public offering REITs of infrastructure: the REIT of Huaxia China Communications Construction Company Limited(601800) expressway was listed today, with an offer price of 9.399 yuan / share, realizing a premium rate of 75% of the book net assets. The existing expressway assets of the company are huge (by the end of 2021, the company has completed a total investment of 223.6 billion yuan in franchise projects; among them, the cumulative investment scale of projects during the operation period has reached 185.2 billion yuan, accounting for 13% of the total assets), which will fully benefit from the historical opportunity of REITs and is expected to usher in value revaluation. At the same time, REITs can make the company’s roe and free cash flow get marginal improvement, and can provide equity funds for the company to help it accelerate its expansion.
Maintain the “buy” rating of the company’s A-shares and H-shares: China Communications Construction Company Limited(601800) strong revenue growth toughness, and the newly signed single ring ratio increased significantly
“A good start”; Establish a joint venture Haifeng Company to consolidate the leading position of Haifeng; We are optimistic about the revaluation of the company’s value by public REITs of infrastructure construction. We maintained the company’s EPS of 1.24 yuan, 1.36 yuan and 1.54 yuan from 2022 to 2024, and the current price corresponding to the dynamic P / E ratio of a / H shares in 2022 was 8.6x/3.1x respectively, maintaining the “buy” rating of A-Shares and H shares.
Risk tip: infrastructure investment is less than expected, order collection is less than expected, and REITs promotion is less than expected.
