This report is read as follows:
In the first three quarters, revenue fell by 5%, net profit increased by 8%. Q3 newly signed construction projects increased by 118%. It is proposed to purchase 100% equity in the Construction Engineering Group, raise no more than 2 billion of matching funds, thicken profits, and optimize the efficiency of resource allocation.
Main points of investment:
Maintain and increase holdings. Due to the development of power generation business and other factors, the forecast EPS for 2022-23 is 0.35 yuan 0.40 yuan (formerly 0.32 trillion yuan 0.37 yuan) with a growth rate of 270.15%, and it is predicted that EPS will grow by 12% in 2024.
The target price will be raised to 9.95 yuan, corresponding to 29 times PE in 22 years.
Revenue fell 5% in the first three quarters, while net profit increased by 8%. 1) the operating income of 9.4 billion yuan in the first three quarters decreased by 5% (21Q1-22Q3), while the net profit increased by 8%.
(21Q1-22Q3 single-quarter 37-pound 53-pound 9-pound); 2) gross margin 12.26% (+ 0.73pct), net profit 2.86% (+ 0.17pct). 3) the operating cash flow is 140 million yuan (- 120 million yuan for the same period in 21 years), the accounts receivable is 7.6 billion yuan (+ 16%), the total impairment loss is 100 million yuan (the same as the same period in 21 years), and the asset-liability ratio is 87.8% (+ 0.72pct).
Clean energy installed 1.8 GWJ Q3 newly signed construction projects increased by 118%. 1) the construction of newly signed projects in the first three quarters was 9.4 billion, an increase of 72 percent. Q3 newly signed construction projects 4.7 billion, with an increase of 118% and 137%. 2) as of August 2022, the company has put into production clean energy total installed 1.8GW (hydropower 0.3 / wind power 0.7 / photovoltaic 0.7GW) for power generation, accounting for 69% of the gross profit of the power generation business. 3) announced on October 22 that 4.7 billion Guangdong Hydropower Bachu County 200,000 kilowatt / 800000 kilowatt-hour supporting energy storage and 800000 kilowatt photovoltaic power generation project (EPC general contract).
It is proposed to buy 100% equity in the Construction Group and raise no more than 2 billion of the supporting funds in a non-public way. 1) according to the announcement on November 3, it intends to buy 100% equity held by Construction Engineering Holdings (corresponding), with a transaction price of 10.5 billion yuan. 2) it is proposed to raise no more than 2 billion yuan of matching funds from no more than 35 investors, and the number of shares issued shall not exceed 30% of the total share capital of the listed company before this transaction. 3) Construction Engineering Group is not only the leading enterprise in Guangdong construction industry, but also the undertaker and main force of major deployment and major construction projects of Guangdong Provincial Party Committee and Guangdong Provincial Government. After this transaction, the return net profit may be increased by 9.8 billion (take the 2021 data as an example), which will help to improve the company's profitability.
Risk tips: higher-than-expected tightening of macro policies, repeated epidemic situation, and so on.
