The company released the first quarter report of 2023. 2023Q1's revenue was 4,063 billion yuan, a decrease of 13.1%; the net profit of the mother was 61 million yuan, a decrease of 273.4%; and EPS-0.05 yuan, a decrease of 273.5%. The 2023Q1 company has a good cashback situation and has set up an international company to carry out overseas business. Maintain the company's buying rating.
Key points to support ratings
The net profit of 2023Q1 returned to the mother declined sharply year over year. 2023Q1 achieved revenue of 4,063 million yuan, a decrease of 13.1%; net profit to the mother was -61 million yuan, a decrease of 273.4%; net profit of the non-return mother was -65 million yuan, a decrease of 319.4%. There was a significant decline in performance in Q1. In the first quarter, the company received 2,058 billion yuan in cash for the sale of goods and the provision of labor services, an increase of 31.3% over the same period, and the repayment situation improved.
Profitability declined, and Q1 payback was better. The comprehensive gross margin of the 2023Q1 company was 6.59%, a decrease of 0.93pct; the net profit margin of the parent company was -1.50%, a decrease of 2.21pct. The 2023Q1 company's expense ratio for the period was 6.65%, an increase of 1.81 pct. Among them, sales/management/R&D/financial expenses increased by 0.52/0.50/0.29/0.50pct respectively over the same period of the previous year, mainly due to the increase in salary bonuses for sales staff and the increase in interest expenses accrued on loans in the first quarter. The decline in gross margin combined with the increase in the cost ratio led to a large decline in the company's net profit.
Q1 The company's new signings and active orders declined year over year. The amount of commercial concrete signed by the 2023Q1 company was 19.4326 million square meters, a decrease of 13.4%; the sales volume was 9.9264 million square meters, a decrease of 0.6%. According to our estimates, the unit sales price of commercial concrete in Q1 was 401.1 yuan/square meter, a decrease of 12.4%; the gross profit per unit was 26.4 yuan/square meter, a decrease of 23.2%. The difference between the company's commercial contracts and sales parties in the first quarter was 9.5062 million square meters, a decrease of 23.6% from the same period. There was a decline in the company's new signings and current orders in the first quarter.
The company is paying more attention to repayment and setting up international companies to promote overseas business. The company will undergo organizational restructuring and pay more attention to payback in 2023. In the future, the company will pay more attention to the development of business in strategic regions and overseas regions such as Beijing and Shanghai. Recently, an international company was set up in Chengdu to further expand overseas markets and accelerate the international market layout.
valuations
The company's performance in the first quarter declined significantly, so we should adjust the company's profit forecast. The company's revenue for 2023-2025 is expected to be $260.9, 284.7, and $31.34 billion, while net profit attributable to the mother is $820, 999, and $1.14 billion respectively; EPS is $0.65, 0.78, and 0.90 yuan. Maintain the company's buying rating.
The main risks faced by ratings
The implementation of infrastructure fell short of expectations, the results of business expansion fell short of expectations, and the results of strategic cooperation fell short of expectations.