Main points of investment
Guangdong Hydropower released a report for the first quarter of 2022: the company's operating income in the first quarter of 2022 was 3.303 billion yuan, down 5.31% from the same period last year; its net profit was 47 million yuan, down 4.55% from the same period last year; and the net profit was 50 million yuan after deducting it, an increase of 2.77% over the same period last year.
The company signed 2.665 billion yuan in construction projects in the first quarter of 2022, an increase of 103.71% over the same period last year.
The high growth of newly signed orders in the first quarter is mainly due to the strong demand for infrastructure in the Greater Bay area where the company is located and the rapid growth of newly signed orders for water conservancy, transportation and other infrastructure projects.
The company achieved operating income of 3.303 billion yuan in the first quarter of 2022, down 5.31% from the same period last year. Our judgment is mainly due to the impact of the epidemic, the slowdown in the construction progress of some projects and the impact of revenue recognition.
In the first quarter of 2022, the company achieved a comprehensive gross profit margin of 10.90%, an increase of 2.49 percentage points over the same period last year, and a net profit rate of 1.62%, an increase of 0.07 percentage points over the same period last year. The increase in net profit margin was less than that of gross profit margin, mainly due to the increase in expense rate during the period.
In the first quarter of 2022, the company recouped assets + credit impairment loss of 38 million yuan, accounting for 1.14% of revenue, more than 4 million yuan more than the same period last year. In the first quarter of 2022, the net operating cash flow per share was-0.24 yuan, which was 0.46 yuan less than the same period last year.
Earnings Forecast and rating: we maintain our profit forecast for the company. It is estimated that the EPS for 2022-2024 will be 0.33,0.40,0.49 yuan, and the corresponding PE at the closing price on April 29 will be 21.9x, 18.2x, 15.0x respectively, maintaining the "prudent overweight" rating.
Risk hints: macroeconomic downside risks, the landing of on-hand orders is not as expected, business development outside the province is not as expected, and the progress of construction projects is not as expected.