Main points of investment
2017Q1 achieved operating income of 547 million yuan, an increase of 71.62% over the same period last year, mainly due to the increase in revenue carried forward according to schedule in the implementation of the project; the company continued the high growth trend since 2016Q2 to verify our judgment: the company's income has entered the inflection point since Q2. The company has sufficient orders on hand, with uneffective orders exceeding 12 billion yuan, which is seven times the income of 16 years. Moreover, the newly signed orders show an accelerated trend. As the "Belt and Road Initiative" strategy continues to advance, the company's 2017 orders are expected to accelerate, and revenue is expected to continue to grow at a high level.
The company's 2017Q1 realized a gross profit margin of 12.86%, a decrease of 4.39% over the same period last year, and a net profit rate of 4.05%, a decrease of 3.53% over the same period last year. The decline in net profit margin was less than that of gross profit margin, mainly due to the reduction of income tax expenses. The cost of corporate income tax was 3.7732 million yuan, down 52.84% from the same period last year, and 1.82% of the income.
The company's expense rate during the 2017Q1 period was 8.06%, an increase of 0.91% over the same period last year, mainly due to the increase in the financial expense rate. The financial expense rate is 2.17%, an increase of 2.80% over the same period last year, which is due to the appreciation of the RMB against the US dollar in the current period. if the impact of foreign exchange is not taken into account, the performance of 2017Q1 has increased by 50%.
The operating cash flow per share of the company's 2017Q1 is 1.23 yuan, compared with-0.45 yuan in the same period last year, mainly due to the increase in project payment received in advance in the current period, indicating that the company is accelerating the execution of orders on hand.
From the balance sheet side: at the end of the reporting period, the balance of the company's accounts receivable was 55 million yuan, an increase of 48.17% over the same period last year, mainly due to the increase in export trade receivables in the current period; the balance of accounts receivable was 770 million yuan, an increase of 35.36% over the same period last year. Mainly due to the increase in the amount of project funds received in advance in the current period, it indicates that the company's revenue is expected to accelerate in the future.
Earnings forecast and rating: the company's EPS from 2017 to 2019 is expected to be 0.50,0.62,0.75 yuan respectively, and the corresponding PE is 36.5,29.2 and 24.3 times respectively, maintaining the "overweight" rating.
Risk hint: the order effective progress is not as expected, the order construction progress is not as expected, and the exchange rate fluctuation risk