The company released its quarterly report for 2022 on October 25. 1-3Q achieved revenue of 3.06 billion yuan, a decrease of 14.2%, and a net profit of 210 million yuan, or 9.9% less than 0.29 yuan per share. Under the high growth rate of infrastructure investment, the company is operating steadily, waiting for the demand improvement brought about by the physical workload, and maintaining the company's buy rating.
Support the main points of rating
Q3 revenue net profit is the same as decrease: 1-3Q company realized revenue of 3.06 billion yuan, with a decrease of 14.2%; return to the mother net profit of 210 million yuan, with a decrease of 9.9% EPS0.29 yuan per share. Q3 realized revenue of 1.05 billion yuan, with a decrease of 18.2%, and a net profit of 70 million yuan, with a decrease of 9.8%. The overall performance of the company is relatively stable. The net cash flow of 1-3Q operating activities was 160 million yuan, an increase of 31.9% over the same period last year. The net operating cash flow of TX Q3 was 20 million yuan, with a decrease of 93.3%.
Q3 profitability improved, expense rate increased: 1-3Q company gross profit margin 20.5%, with an increase of 2.1pctbot Q3 gross profit margin of 21.0%, with an increase of 3.4pct, a ring increase of 0.6pct. The expense rate increased with the same month-on-month increase, with an increase of 12.3% in the four items of 1-3Q, 13.0% in the same increase in 1.4 pct / Q3, and an increase in 1.8pct and 1.7pct. The increase in the expense rate makes the improvement of the net interest rate weaker than the gross profit margin, with a net interest rate of 6.8% for 1-3Q, an increase of 6.9% for Q3, an increase of 0.4pct, and an annular decline of 0.2pct.
The company is operating steadily, waiting for the demand to be repaired. In September, infrastructure investment totaled 2.2 trillion yuan, up 16.3 percent from the same period last year, and the growth rate continued to expand compared with August. New orders signed by four central construction enterprises, namely, China Construction, China Metallurgical, China Chemical and China Electric Power Construction, increased by 22%, 13.1%, 65.2% and 102.9% year-on-year. 1-3Q under the influence of macro external factors, the company maintains a sound operation, with the future physical workload of capital construction gradually falling to the ground, the demand may be improved.
Valuation
The company's performance is sound, considering the physical workload of infrastructure in the fourth quarter, we slightly adjust the profit forecast, the company's revenue from 2022-2024 is estimated to be 48.8,54.7 and 6.15 billion yuan, the return net profit is 2.8,3.8 and 460 million yuan, and the EPS is 0.39,0.52,0.64 yuan, maintaining the company's buying rating.
Main risks faced by rating
Production capacity is lower than expected, raw material prices are rising, and demand is lower than expected.