Incident: The company released the 2023 Yili Report. During the reporting period, the company's current operating revenue reached 16.165 billion yuan, YOY +11.25%, achieving net profit/net net profit of 3,48/372 million yuan after deducting non-net profit, YOY +11.35%/+28.79%. The performance was in line with expectations.
Net profit returned to the mother increased by 11.4%, and net profit after deducting non-net profit increased by 28.8%
In 2301, the company's revenue was 16.165 billion yuan, an increase of 11.25% over the previous year. Net profit attributable to the mother and net profit after deducting non-net profit was 388/372 million yuan respectively, and YOY increased +11.35%/+28.79% respectively. The increase in net profit after deducting non-recurrent profit and loss was mainly due to a sharp decline in “other profit and loss items that meet the definition of non-recurring profit and loss” among non-recurring profit and loss items.
Gross margin remained stable, and expense ratios and cash flow improved dramatically
On the gross profit side: 2301, the company's gross margin was 10.84%, a slight increase of 0.01 pct from the previous year, and remained stable: in terms of expenses: the period expense ratio was 5.92%, yoy-0.52pct, the sales/management/finance/R&D expenses ratio was 0.35% /3, 08% /2, 49%/1.22%, respectively. The year-on-year ratio was +0.06/-0, 32/-0.26/-0.08pct, respectively. The management fee bill and financial expense ratio improved significantly: cash flow: net operating cash flow of -1,565 billion yuan, a year-on-year decrease of 13.2,505 billion yuan in outflows of 13,505 billion yuan This is mainly due to a decrease in net cash outflow from PPP projects.
The business structure was further optimized, and the number of new signings increased steadily by 16.6%
The number of new contracts signed by the company in 2301 was 38.452 billion yuan, an increase of 16.56% over the previous year. By business, the amount of new contracts signed for infrastructure and housing projects was 263.45/12.107 billion yuan, yoy +26.31%/-0.19% of the company's new contract amount, respectively, accounting for 68.51%/31.49% of the company's new contract amount, which was +5.28/-4.83pct over the previous year; among infrastructure projects, the highway bridge acquisition/municipal engineering/hydraulic engineering/port and aviation engineering business achieved a new contract amount of 105,88/147.64/611/682 billion yuan respectively. YOY -24.03% /+149.525/ -35.21%/+526.23% The company's order structure continues to be optimized, the proportion of housing construction projects has declined, and the proportion of infrastructure projects has increased.
It is expected to benefit from the new refinancing regulations in the short term, driving the “investment, finance, construction and operation” integrated model and engineering inspection to drive medium- to long-term development: On November 28, 22, the Regulatory Commission issued new financing regulations for listed companies involving housing. In 18-22, the company's balance ratio remained about 84%, and PB (LF) was 1.11 times. From a practical level, it is driven by medium- to long-term equity refinancing regulations: 1) The company will continue to develop integrated infrastructure investment, construction and operation capabilities, etc., and achieve an integrated capacity for infrastructure investment, construction and operation in 2022, achieving 5.10 billion yuan, corresponding gross profit margin of 22.4%; 2) Controlling the operation of energy sources ability, It owns a controlled operation of hydropower plants, with a total installed capacity of 0.25 GW, and total revenue and profit of the hydropower business in 2022 was 188/55 million yuan respectively; 3) Testing capacity was leading in the province. The two inspection stations and road and bridge inspection/loop inspection ranked among the highest in the province in terms of housing construction inspection and infrastructure inspection respectively. Among them, road and bridge inspection and loop inspection had the highest inspection capabilities in the province in the fields of highways, municipal administration, rail transit, etc., all approved for comprehensive grade A qualifications for highway engineering inspection. Five companies in the province took into account profit predictions and suggestions: In terms of the company's order acquisition in the province, Youmeng is expected to stand out and be superimposed Benefiting from the new housing refinancing regulations, the company's operations in 2023-2025 are expected to reach 933.15, 1106.17, and 132,732 billion yuan, an increase of 16.47%, 18.54%, 19.99% over the previous year, and net profit of 1,678, 20.47 and 2,513 billion yuan. The corresponding EPS is 0.98, 1.19, and 1.46 yuan. The current price corresponds to PE 6.45, 5.28, 4.30 times. Maintain a “buy” rating.
Risk warning events: The “14th Five-Year Plan” infrastructure construction investment in Anjiao Province fell short of expectations, business progress fell short of expectations, and the risk of repayment from housing construction and infrastructure investment business.