Events:
The company released three quarterly reports. In the first three quarters of 2022, total operating income reached 77.279 billion yuan, up 20.27 percent over the same period last year; net profit returned to the home was 1.278 billion yuan, up 22.72 percent over the same period last year; and 1.233 billion yuan was deducted from non-return net profit, an increase of 24.22 percent over the same period last year.
Comments:
The performance is smooth. The company's Q1~Q3 realized total operating income of 25.276 billion yuan / 26.524 billion yuan / 24.479 billion yuan, net profit of 423 million yuan / 396 million yuan / 459 million yuan, and non-return net profit of 414 million yuan / 379 million yuan / 440 million yuan respectively. In the first three quarters, the gross profit margin of sales was 8.44%, a slight increase of 0.08 pct over the same period last year; the net sales margin was 2.31%, a slight increase of 0.01 pct over the same period last year; and 1.60% was deducted from the non-net interest rate, which slightly increased 0.05pct over the same period last year.
There are plenty of orders. By the end of 2021, the company had an order of 232.479 billion yuan, which is about 2.78 times the total revenue in 2021. In the first three quarters of 2022, the company signed a new order of 95.521 billion yuan.
An increase of 2.68 billion yuan is proposed to support the expansion of the business scale. On September 30, 2022, the company announced that it was planned to increase by no more than 2.68 billion yuan, of which the company's controlling shareholder, China Nuclear Corporation, planned to subscribe for 600 million yuan, and the funds raised were to be invested in the road project of Yiling section of Gangyao Road in Yichang City. The fixed increase of successful issuance will enhance the company's capital strength, optimize the financial structure, and meet the needs of business expansion.
Nuclear power audit accelerated, optimistic about the company's nuclear power project prospects. On September 14, 2022, the executive meeting of the State Council approved a total of 4 new nuclear power units in Zhangzhou Phase II in Fujian and Lianjiang Phase I in Guangdong Province. by this time, 10 new nuclear power units have been approved in 2022, which is an all-time high, or marks the enhancement of the importance of nuclear power under the dual-carbon strategy and the overall acceleration of construction. The company is the only listed platform of CNNC, the main body of the national nuclear technology industry, which is engaged in construction projects. It has occupied an absolutely dominant position in the domestic nuclear power construction market for a long time and is expected to benefit significantly.
Maintain the "buy" rating with a target price of 10.20 yuan. It is estimated that from 2022 to 2024, the EPS is 0.69, 0.82 and 0.96 yuan, and the corresponding PE is 11.62, 9.70 and 8.29 times.
Risk tips: nuclear power investment is not as expected, ESG risk, company performance is not as expected