Event: the company publishes its 2021 semi-annual report. During the reporting period, the company achieved operating income of 42.544 billion yuan, an increase of 29.11% over the same period last year, and a net profit of 557 million yuan, an increase of 33% over the same period last year, deducting 520 million yuan of non-net profit, an increase of 32.15%.
The performance grew steadily. 2021H1 achieved operating income of 42.544 billion yuan, an increase of 29.11% over the same period last year, mainly due to: 1, the reorganization of task reserves, and the increase in income from various sectors; 2. The scale of income affected by the epidemic in the same period last year was relatively low. 2021H1 is building a total of 18 nuclear power units at home and abroad, including 17 at home and 1 abroad. Hualong No. 1 has entered the stage of batch construction. The construction of nuclear power projects such as Zhangzhou I, Changjiang II, Taipingling I and Sanao I is safe, quality and progress are controlled, and the construction of the project is carried out in an orderly manner. The construction of the ITER project in France is progressing smoothly. The company achieved a net profit of 557 million yuan, an increase of 33% over the same period last year, deducting 520 million yuan from non-net profit. The gross profit margin and net profit rate of 32.15%2021H1 Company increased by 8.15% and 1.89% respectively over the same period last year, with changes in 0.31pct and 0.14pct respectively. The net cash flow of operating activities was-3.503 billion yuan, an increase of 845 million yuan compared with-2.658 billion yuan in the same period last year. The main departments are: 1. The amount paid for the project has increased over the same period last year. 2. The salary paid by the staff and workers increased by 1.08 billion yuan compared with the same period last year, and the manpower investment increased this year. At the same time, they enjoyed social security relief during the epidemic in the same period last year As of June 30, 2021, the company's asset-liability ratio was 83.58%, a year-on-year decrease in 1.51pct.
The value of new contracts signed by 2021H1 increased by 24%. The newly signed contract value of 2021H1 Company was 63.4 billion yuan, an increase of 24% over the same period last year. Among them, in the field of nuclear power construction, the company's newly signed contracts include Lufeng No. 5 and No. 6 nuclear island civil engineering contract, Sanao No. 1 and No. 2 nuclear island installation contract, Tianwan No. 7 and No. 8 nuclear island civil engineering contract, Xudabu No. 3 and No. 4 nuclear island civil engineering contract In the field of industrial and civil engineering construction, the company has successfully undertaken the construction of supporting service facilities in Zhangqiu Mingshui Ancient City of Jinan and the construction of Chengnan New District Hospital of Anyue County people's Hospital. As of July, the company signed a new contract of 72.832 billion yuan, an increase of 20.6% over the same period last year. Of this total, military engineering contracts totaled 17.156 billion yuan, an increase of 391.4 percent over the same period last year. New contracts for nuclear power projects totaled 16.999 billion yuan, an increase of 5.2 percent over the same period last year. New contracts for industrial and civil projects totaled 38.677 billion yuan, down 5 percent from the same period last year.
Non-carbon energy construction welcomes opportunities. After the goal of "carbon neutralization and carbon peak" was put forward, China's non-carbon energy, especially nuclear energy, ushered in new opportunities. In the "14th five-year Plan" and in the medium and long term, the position of nuclear energy in China's clean energy low-carbon system will be more clear, and nuclear power construction is expected to continue to advance steadily according to 6-8 units per year. The company leads the world in nuclear power construction capacity, occupies an absolutely dominant position in the domestic nuclear power construction market for a long time, and will usher in major development opportunities.
There is a large space for urban renewal market. Under the orientation of "housing without speculation", the real estate industry will gradually change from the incremental mode to the stock mode. At the same time, considering that some cities in our country have been built for a long time, the building standards no longer meet the current requirements, and there will be more market space for urban renewal in the future. The Ministry of Housing and Construction estimates that the overall investment scale of the old reform will exceed 4 trillion yuan. at present, various localities have issued three-year action plans for the renovation of old residential areas, and the Ministry of Housing and Construction has launched pilot projects for the transformation of old urban residential areas in 15 cities such as Xiamen and Guangzhou. from the perspective of market segmentation, rail transit, underground space, ecological environmental protection, and telecommunications facilities are expected to become the fastest growing areas, and the total amount of road and railway markets continues to remain high. The future development of the company's industrial and civil engineering construction business will benefit.
Investment suggestion
It is estimated that from 2021 to 2023, the EPS of the company will be 0.55 soybean 0.63 yuan per share, and the corresponding dynamic price-to-earnings ratio will be 15.07 soybean 13.16 cyber 11.68 times, maintaining the "recommended" rating.
Risk hint: the risk that the newly signed order is not as expected when it is landed; the risk that the epidemic is not controlled as expected.