Longyuan Construction released the third quarterly report of 2021: the operating income in the first three quarters of 2021 was 15.158 billion yuan, an increase of 2.23% over the same period last year, and the net profit was 605 million yuan, an increase of 6.29% over the same period last year. Of this total, Q3 achieved an operating income of 4.86 billion yuan, an increase of 1.78% over the same period last year, and a net profit of 195 million yuan, an increase of 4.22% over the same period last year.
In the first three quarters of 2021, the operating income reached 15.158 billion yuan, an increase of 2.23% over the same period last year. From a quarterly point of view, the company achieved operating income of 5.063 billion yuan, 5.236 billion yuan and 4.86 billion yuan in Q1, Q2 and Q3 respectively, with year-on-year changes of + 7.25%,-1.8% and + 1.78% respectively.
In the first three quarters of 2021, the company achieved a comprehensive gross profit margin of 16.09%, an increase of 5.64pct over the same period last year. The large change in gross profit margin is related to the adjustment of the classification of PPP projects. The net interest rate reached 3.99%, an increase of 0.12pct over the same period last year. The increase in gross profit margin is significantly higher than that of net profit margin, which is mainly due to the substantial increase in the rate of financial expenses.
In the first three quarters of 2021, the company's credit plus asset impairment loss was 135 million yuan, accounting for 0.89% of revenue, an increase in 0.31pct compared with the same period last year. We judge that the increase in impairment loss of credit assets is mainly due to the increase in the loss of bad debts of accounts receivable. In the first three quarters of 2021, the net operating cash flow per share was-1.05 yuan, which was 1.20 yuan more than the same period last year. The increase in cash-to-cash ratio was greater than the cash-to-cash ratio, which was the main reason for the increase in cash outflow.
Earnings forecast and rating: we maintain the profit forecast for the company. It is estimated that the company's EPS forecast for 2021-2023 will be 0.60,0.66,0.73 yuan respectively, corresponding to the closing price PE of 11.6,10.5,9.4 times on October 28, respectively, maintaining the "prudent overweight" rating.
Risk hints: macroeconomic downside risks, lower-than-expected landing of prefabricated buildings, lower-than-expected development of EPC business, lower-than-expected recovery of accounts receivable, and cyclical fluctuations of chemical fiber products.
