Main points of investment
Sent shares released the third quarterly report of 2021: the company's operating income in the first three quarters was 2.09 billion yuan, down 4.98% from the same period last year; the net profit attributed to the shareholders of the parent company was 85 million yuan, down 39.03% from the same period last year.
Of this total, Q3 realized operating income of 721 million yuan, down 19.03% from the same period last year, and realized net profit of 29 million yuan, down 43.92% from the same period last year.
In the first three quarters, the operating income reached 2.09 billion yuan, down 4.98% from the same period last year. The judgment was mainly due to the impact of the epidemic and the delay in project acceptance and settlement. From a quarterly point of view, the company's operating income of Q1, Q2 and Q3 reached 607 million yuan, 761 million yuan and 721 million yuan respectively, representing year-on-year changes of 1.34%, 7.33% and-19.03%, respectively.
In the first three quarters, the company achieved a comprehensive gross profit margin of 17.85%, an increase of 0.89 pct over the same period last year, and a net profit margin of 4.04%, down 2.32pct from the same period last year. In the first three quarters, the gross profit margin increased while the net profit rate decreased significantly, we concluded that it mainly includes three reasons: 1) the company's premium rate rose 1.10pct during the first three quarters compared with the same period last year; 2) the company's bad debt provision increased in the first three quarters, assets + credit impairment loss increased by about 41 million yuan, accounting for 1.77pct of income compared with the same period last year; 3) the company's net investment income in the first three quarters decreased by about 12 million yuan compared with the same period last year.
The company's expense rate for the first three quarters was 4.78%, which was lower than that of the same period last year (0.12pct). In the first three quarters, the company's asset impairment loss + credit impairment loss totaled 41 million yuan, accounting for 1.98% of income, an increase in 1.77pct over the same period last year. The increase in impairment losses is mainly due to the impact of the epidemic, resulting in delays in project acceptance and settlement, an increase in the age of accounts receivable and an increase in bad debts in the current period.
In the first three quarters, the company's net operating cash flow per share was-0.43 yuan, with an increase of 0.07 yuan per share compared with the same period last year, mainly due to the company's normal payment to upstream suppliers in order to ensure the normal operation of the project and maintain the stability of the supply chain. In addition, due to the increase in the price of raw materials, the company prepared materials in advance, and the cash paid for goods and services increased by 8.97% this year compared with the same period last year. The ratio of income and cash in the first three quarters changed 9.90pct and 13.97pct respectively compared with the same period last year.
The carbon peak action plan has been launched with a view to building new public institutions and building new factory roofs with photovoltaic coverage of 50% by 2025. BIPV policy continues to increase, the market is on the eve of the outbreak, optimistic about the company to join hands with Longji shares to expand the business prospects of BIPV.
Profit forecast and valuation: we expect the EPS of the company from 2021 to 2023 to be 0.33,0.64,0.97 yuan respectively, and the corresponding PE of the closing price on October 29 will be 134.2 times, 68.5 times and 45.5 times respectively, covering for the first time and giving the rating of "prudent overholdings".
Risk tips: macroeconomic downside risks, orders are not advancing as expected, newly signed orders are not as expected, cash flow conditions are deteriorating, and overseas projects fail to take effect.
