China Power Construction (601669) Annual Report Review Report: During the period, the expense ratio remained stable and the net cash flow from operations increased significantly
The company recently announced its 2018 annual report and achieved operating income of 2,952.
800,000 yuan, an increase of 10.
61%, net profit attributable to mother 76.
9.5 billion, an increase of 3.
The comments are as follows: Orders are steadily increasing, and overseas orders are growing faster. In 2018, the company’s orders steadily increased, and the 西安耍耍网 new contract value was 4,558.
1.4 billion yuan, an increase of 12.
05%; of which, the value of new domestic contracts was 3,021.
8.2 billion, an increase of 4.
New overseas contracts amounted to 1,536.
32 trillion, an increase of 29.
29%, the main company 18 years of vigorous development of South Africa and other new country businesses, participating in the “Belt and Road” countries along the infrastructure.
The total number of new contracts signed in the first quarter of 2019 was approximately RMB 1,753.
5.4 billion yuan, an increase of 16.
15%, the main overseas business orders increased rapidly (the same increase of 20.
The company plans to sign 4930 trillion new contracts in 2019, an increase of 8.
Revenue grew steadily, and gross profit margin remained stable. The company’s operating income in 2018 was 2,952.
800,000 yuan, an increase of 10.
61%, of which the engineering contracting, survey and design business grew steadily, with revenue of 2413.
1.1 billion, an increase of 9.
98%, mainly due to the steady increase in the scale of non-traditional businesses such as infrastructure engineering; power investment and operations 144.
1.3 billion with an increase of 46.
37%, mainly due to the increase in the total installed capacity of generators under control and the further increase in power generation.
Real estate development business 198.
5.1 billion with an increase of 7.
41%, the main company adjusted the investment layout and improved operating efficiency, the company’s gross profit margin in 201814.
77%, increasing by 0 every year.
69 grades, of which the gross profit margin of real estate development business is 22.
55%, up 2 every year.
95 single items, mainly due to the combined effects of factors such as the high-margin project’s centralized profit settlement, and the power investment operation business43.
17%, a decrease of 2 per year.
The 11 levels, mainly the overseas thermal power operation projects allowed by the gross margin level, have entered the operating period this year.
The company’s 2019 budget revenue target is 315.1 billion, a growth rate of 6.
The expense ratio during the period remained stable, and the net profit attributable to the mother increased steadily.18%, basically the same as last year, of which the sales expense ratio was 0.
32%, basically the same; management expense ratio 3.
53%, rising by 0 every year.
15 single, mainly due to rising staff budgets, financial expense ratio 2.
18%, a decline of 0 per year.
The 35 single ones are mainly due to the increase in interest rate income and the increase in net exchange gains; the R & D expense ratio3.
14%, an increase of 0 every year.
28 units, mainly related to personnel costs, increased raw materials.
Asset impairment losses 29.
1.7 billion, an increase of 235.
97%, the main department’s bad debt losses increased.
Net profit attributable to mother 76.
9.5 billion yuan, an increase of only 3.
79%, the growth rate of dividends of certain subsidiaries of the main debt-to-equity swap resulted in a substantial increase in profit and loss of minority shareholders.
Net cash flow from operating activities increased significantly, and the asset-liability ratio decreased somewhat. The company’s 2018 cash ratio was zero.
95, up 2 every year.
The 91 tiers are mainly due to the increase in income in the current period and a cash-out ratio of 0.
75%, rising by 1 every year.
62 units, or due to the increase in the advancement of construction projects, the net cash flow from operating activities in 2018 was 191.
8.3 billion, an increase of 136 over the previous year.
The company’s asset-liability ratio in 2018 was 79.
97%, reducing by 0 every year.
78 single items were mainly due to the increase in intangible assets and long-term receivables, which resulted in an increase in total assets.
Investment suggestion: The company’s orders and revenue have grown steadily in 2018, gross profit margin and period expense ratio have remained stable, net cash flow from operating activities has increased, and the asset-liability ratio has decreased, and the business layout of countries along the Belt and Road has gradually expandedTherefore, we increase the company’s EPS for 2019-2021 to 0.
78 yuan (the original 2019-2020 EPS forecast is 0.
64 yuan), corresponding PE is 9, 8, 7 times, maintaining the “buy” level.
Risk warning: fast transition of the growth rate of investment in fixed assets; expected growth of gross profit margin; project advancement fails to meet expectations