Core views:
Event: The company released its 2022 semi-annual report. During the reporting period, the company achieved revenue of 52.8 billion yuan, an increase of 24.11% over the previous year; it achieved net profit of 819 million yuan to the mother, an increase of 47% over the previous year.
Performance is growing at a high level as planned. In the first half of 2022, the company achieved revenue of 52.8 billion yuan, an increase of 24.11% over the previous year. Among them, the industrial and civil engineering construction sector achieved revenue of about 41 billion yuan, an increase of 21.24% over the previous year, and the nuclear power engineering construction sector achieved revenue of about 8.4 billion yuan, an increase of 30.7% over the previous year. The company achieved net profit of 819 million yuan, an increase of 47% over the previous year, and achieved net profit of 793 million yuan after deducting non-net profit of 793 million yuan, an increase of 52.47% over the previous year.
During the reporting period, the company's gross margin was 8.29%, an increase of 0.14pct over the previous year. The company's net interest rate was 2.19%, an increase of 0.3 pct over the previous year.
The number of new contracts signed increased 10.57% year on year, and nuclear power contracts grew rapidly. The amount of new contracts signed by the company in the first half of 2022 was 70.1 billion yuan, an increase of 10.57% over the previous year. Among them, the amount of new contracts signed in the nuclear power engineering construction sector reached 20.3 billion yuan, an increase of 42.81% over the previous year. The company signed major nuclear power projects such as the Haiyang Unit 3 and 4 Nuclear Island Civil and Installation Project, the Three Gate 3 and 4 Nuclear Island Civil and Installation Project, the Lu Feng Unit 5 and 6 Nuclear Island Installation Project, and the Pakistan Chashima Nuclear Power Station Unit 5 (C-5 Project) construction project. The company's industrial and civil engineering sector covers housing construction, municipal administration, highways, bridges, tunnels, urban tracks, new energy, petrochemicals, hydropower construction and other fields. The amount of new contracts signed reached 49.8 billion yuan, an increase of 1.25% over the previous year. The company successfully undertook ecological management and infrastructure support in the Shouxi area of Putian City through EPC, infrastructure construction in Zhenping County Advanced Manufacturing Development Zone in Henan, and the 500MW wind and light storage integrated energy project (photovoltaic section) in Huanjiang County. As of July 2022, the company signed a total of 75.292 billion yuan of new contracts, an increase of 3.4% over the previous year.
Vigorously promote fine management and enhance competitiveness through scientific research and innovation. The company vigorously promotes “fine” management. All nuclear power units under construction of the company implement the “six controls and seven zeros” fine management model. In terms of multi-stack construction, cluster management, integration of construction and security, and construction technology innovation, etc., the company continues to promote standardization, intensification and integration, improve the management level of nuclear power projects, and ensure that the safety, quality and progress of nuclear power project construction are controlled. While ensuring the management quality of existing projects, the company continues to strengthen investment in scientific research, carry out academic and research cooperation, carry out technical exchanges and cooperation with Southeast University, etc., and independently develop and promote technologies such as automatic welding equipment and smart construction site platforms for Chinese nuclear construction. The company's “method for testing the quality of main circuit piping welds in nuclear power plants using phased array ultrasound” won the 23rd China Patent Award of Excellence.
Investment advice: The company's revenue in 2022 is expected to be 97.579 billion yuan, an increase of 16.55% over the previous year, net profit of 1,801 billion yuan, an increase of 17.51% over the previous year, and EPS is 0.68 yuan/share, corresponding to the current stock price PE 12.03 times, maintaining “recommendation”
ratings.
Risk warning: the risk that the new contract will not be implemented as expected; the risk that the COVID-19 pandemic will affect the progress of the project; the risk that the recovery of accounts receivable falls short of expectations.