Main points of the report
Event description
Chengdu Luqiao released its 2015 mid-term report, with operating income of 523 million yuan, down 34.33% from the same period last year, gross profit 13.64%, 1.95% lower than the same period last year, and net profit attributable to 11 million yuan, down 66.23% from the same period last year. Based on this, it is calculated that the company achieved operating income of 336 million yuan in the second quarter, down 21.35% from the same period last year, 13.89% gross profit, 1.78% lower than the same period last year, and 4 million yuan net profit, down 82.44% from the same period last year. EPS0.005 yuan.
Event comment
Project start decreased, revenue and gross profit margin dropped: in recent years, major national infrastructure investment was mainly concentrated in railways, rail transit and other projects, and investment in highway and traditional municipal construction projects declined, resulting in a continuous decline in the company's order income. Under the large superimposed funding gap, the proportion of unstarted projects increased. In the first half of the year, the company's revenue decreased by 34.33% compared with the same period last year, and the gross profit margin decreased by 1.95 percentage points. Under the combined effect of the two, the company's gross profit decreased by 53 million yuan compared with the same period last year. Although the three fees and income taxes have declined, it still cannot reverse the 66.23% decline in the company's net profit. At the same time, due to the continuous decline in order revenue, it is difficult for the company's operating income to pick up in the short term.
From a quarterly point of view, in addition to being affected by the decline in project start and the decline in revenue and gross profit margin brought about by intensified competition, the increase in accounts receivable leads to an increase in the provision of bad debts, and the expansion of asset impairment loss is also one of the main reasons why net profit dropped sharply by 82.44% in the second quarter compared with the same period last year.
The company expects to achieve a net profit of 0.17 to 50 million yuan in the first three quarters, an increase of-85 percent to 55 percent and EPS0.02~0.07 yuan over the same period last year. Based on this, the company calculates a net profit of 0.05 to 39 million yuan in the third quarter, an increase of-93 percent, 50 percent, and 0.05 yuan on a year-on-year basis.
The company's main business is concentrated in Sichuan Province, with greater location advantages. At present, the urbanization of Sichuan Province is relatively low compared with the central and eastern regions, and there is still a lot of room for infrastructure investment in the future. As one of the few fully qualified road and bridge enterprises in the province, the company is expected to fully benefit.
It is estimated that the company's EPS in 2015 and 2016 will be 0.09 yuan and 0.24 yuan respectively, corresponding to 77x and 29x PE respectively, maintaining the "overweight" rating.