Pudong Construction released the third quarterly report of 2022: in the first three quarters of 2022, the company achieved operating income of 8.861 billion yuan, an increase of 21.72% over the same period last year, and a net profit of 426 million yuan, an increase of 31.07% over the same period last year.
Of this total, Q3 achieved an operating income of 4.132 billion yuan, an increase of 48.23% over the same period last year, and a net profit of 195 million yuan, an increase of 76.43% over the same period last year.
The company's total operating income reached 8.861 billion yuan in the first three quarters of 2022, an increase of 21.72% over the same period last year. Driven by the policy of stable growth of infrastructure, the company has accelerated the promotion of projects under construction, accelerated the formation of physical workload, and achieved rapid growth in revenue. From a quarterly point of view, the company's Q1, Q2 and Q3 achieved income of 3.866 billion yuan, 862 million yuan and 4.132 billion yuan respectively, with year-on-year changes of + 35.07%,-47.09% and + 48.22%, respectively.
Q2 quarter operating income declined sharply, mainly because the company's business was mainly concentrated in Shanghai. Affected by the epidemic, risk control in Shanghai led to a lag in project progress. With the resumption of work and production, the company's Q3 revenue returned to the track of rapid growth.
In the first three quarters of 2022, the company achieved a comprehensive gross profit margin of 7.51%, an increase of 0.30 percentage points over the same period last year, and a net profit margin of 4.85%, an increase of 0.34 percentage points over the same period last year. The company completed the merger and acquisition of Pudong Design Institute in the third quarter. Pudong Design Institute's gross profit margin and net profit rate are relatively high, and the statement plays a positive role in improving the company's gross profit margin and net profit margin.
The net operating cash flow per share in the first three quarters of 2022 was-0.25 yuan, an increase of 0.73 yuan over the same period last year. The increase in net operating cash flow is mainly due to the increase in construction business, the increase in project payments received, the decrease in performance bonds paid and the thawing of restricted funds paid in the same period last year.
Profit forecast and rating: with the acquisition of Pudong Design Institute, the company's overall competitiveness continues to improve. We estimate that the company's EPS in 2022-2024 will be 0.72,0.88,1.06 yuan respectively, and the corresponding PE on October 28 closing price will be 8.7,7.2,6.0times respectively, covering for the first time and giving it a "prudent overweight" rating.
Risk tips: macroeconomic downside risks, orders not advancing as expected, newly signed orders not as expected, and the risk of cash flow deterioration.
