Main points of investment
The third quarterly report of Guangdong Hydropower Development and Distribution in 2022 announced that the company achieved operating income of 9.4 billion yuan in the first three quarters of 2022, down 5.07% from the same period last year, and realized net profit of 251 million yuan, an increase of 8.30% over the same period last year. Of this total, Q3 achieved an operating income of 3.137 billion yuan, an increase of 1.21% over the same period last year, and a net profit of 67 million yuan, down 8.50% from the same period last year.
The value of new contracts signed by the company in the first three quarters of 2022 was 9.416 billion yuan, an increase of 71.66 percent over the same period last year. From a quarterly point of view, the newly signed contract amounts of Q1, Q2 and Q3 are 2.665 billion yuan, 2.005 billion yuan and 4.746 billion yuan respectively, with year-on-year changes of + 103.71%, + 0.08% and + 118.36%, respectively. The strong demand for infrastructure in the Greater Bay area where the company is located, the rapid growth of newly signed orders for green power, transportation and other infrastructure projects, and the company's future performance is guaranteed.
The company's total operating income reached 9.4 billion yuan in the first three quarters of 2022, down 5.07% from the same period last year. From a quarterly point of view, the company's Q1, Q2 and Q3 achieved revenue of 3.303 billion yuan, 2.96 billion yuan and 3.137 billion yuan respectively, with year-on-year changes of-5.31%,-10.69% and + 1.21%, respectively. Among them, business income declined significantly in the Q2 quarter, mainly due to the decline in revenue related to engineering construction, as well as land expropriation, floods and other factors affected the construction progress of some water conservancy, track, road and bridge projects, affected the revenue recognition, Q3 quarter operating income stabilized and rebounded, returned to the positive growth track, as newly signed orders continued to convert to physical workload, the company's revenue is expected to speed up again.
In the first three quarters of 2022, the company achieved a comprehensive gross profit margin of 12.26%, an increase of 0.73 pct over the same period last year, and a net profit margin of 2.86%, an increase of 0.17pct over the same period last year. The increase of net interest rate is less than that of gross profit margin, which is mainly due to the loss of credit impairment.
In the first three quarters of 2022, the net operating cash flow per share was 0.11 yuan, which was 0.21 yuan more than the same period last year, mainly due to the increase in VAT retention tax rebate received.
Earnings forecast and rating: we maintain the profit forecast for the company. It is estimated that the EPS of the company from 2022 to 2024 is 0.33,0.40,0.49 yuan respectively, and the corresponding PE of the closing price on October 27 is 20.2,16.8,1.38 times 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.