Overview of events
The company released the third quarter report of 2020, the company's revenue in the first three quarters was 2.33 billion yuan,-2.44% compared with the same period last year, and the net profit was 152 million yuan, + 4.29%, 146 million yuan, + 4.88%, and 0.16 yuan per share.
In the single quarter of Q3 in 2020, the company achieved revenue of 879 million yuan, year-on-year-1.88%, net profit of 24 million yuan, year-on-year-3.7%, non-return net profit of 22 million yuan, year-on-year-2.46%, basic earnings per share of 0.026 yuan.
Although the revenue of Q3 company decreased compared with the same period last year, the increase in gross profit margin and the sharp increase in investment income contributed to the positive growth of total profits, and the increase in expenses dragged down the performance growth of Q3 company.
In the single quarter of Q3 in 2020, the company achieved revenue of 879 million yuan, year-on-year-1.88%, operating cost of 729 million yuan, year-on-year-5.48%, gross profit of 17.1%, 3.1 percentage points higher than the 14% gross profit of the same period last year, and gross profit of 151 million yuan, + 20.2% year-on-year.
In the single quarter of Q3 in 2020, the company's net investment income was 17 million yuan, + 124% compared with the same period last year.
In the single quarter of Q3 in 2020, the company's sales expenses were 27 million yuan, year-on-year-12.1%; management expenses were 61 million yuan, + 31.6% year-on-year; and financial expenses were 33 million yuan, + 75.9% year-on-year. It is judged that the main reason is the increase in borrowing such as ultra-short financing and corporate bonds during the reporting period. The total three fees of Q3 company is about 120 million yuan, which is + 26.5% compared with the same period last year.
In the single quarter of Q3 in 2020, the company's total profit was 43 million yuan, + 7.7% year-on-year, and income tax expenses were 14 million yuan, + 40.8% year-on-year.
The substantial year-on-year increase in costs during the reporting period was a drag on performance growth.
During the reporting period, the company made progress in a number of acquisitions in the port industry, energy and environmental protection industry, and the scale of business is expected to be further expanded.
During the Q3 period in 2020, the company made progress in a number of acquisitions:
According to the announcement of the company on September 25, as of September 24, 2020, the non-interested shares that accepted the offer had completed the registration procedures for the change of shareholds. after the change, Zhuhai Port Hong Kong, a wholly-owned subsidiary of the company, held 95.9% of Xinghua Port and became the controlling shareholder of Xinghua Port. The net profit of H1 in Xinghua Port 2019 will be RMB 0.84 billion in 2020. The acquisition of Xinghua Port will expand the company's port business to the economically developed Yangtze River Delta region, which is expected to improve the company's business scale and profitability.
According to the company's announcement on September 23, Zhuhai Port Gang, a wholly-owned subsidiary of the company, plans to acquire 100% equity of Anhui Tianyang Energy Technology Development Co., Ltd. (hereinafter referred to as "Anhui Tianyang") held by Yongzhou Jie Brand, with an investment transaction amount of 220 million yuan. The relevant agreement has not yet been signed. Anhui Tianyang currently holds a 100% stake in Tianchang aggregation Wind Power Co., Ltd., and actually controls the Tianchang aggregation Yangcun 48MW wind farm project. Anhui Tianyang has revenue of 55 million yuan and net profit of 18 million yuan in 2019.
According to the company's announcement on September 23, Zhuhai Port Gang, a wholly-owned subsidiary, intends to acquire 49% of Suqian Xiehe New Energy Co., Ltd. (hereinafter referred to as "Suqian Xiehe") held by Xiehe Wind Power. The equity acquisition price is 52 million yuan, and the relevant agreement has not yet been signed. Suqian Cooperative operates the roof distributed photovoltaic project, and the total installed capacity of the project is 9.3MW.
In 2019, the revenue of accommodation and relocation cooperation was 59 million yuan, and the net profit was 8.3 million yuan.
Investment advice: it is expected that the completion of Xinghua Port acquisition will improve the company's profitability, raise the company's profit forecast, and maintain the "buy" rating.
Taking into account the impact of the Xinghua port acquisition on the company's financial data, we raised the company's revenue in 2020-22 to RMB 3.83 billion (the original profit forecast for 2020-22 was RMB 3.70 billion), and raised the net profit to 239,278,295 million. (the original profit forecast for 2020-22 is 233,270pm), and the corresponding EPS is 0.26Universe 0.30Unix 0.32 yuan (the original estimate for 2020-22 EPS is 0.25Unix 0.29pence 0.31). According to the closing price of 5.46yuan per share on October 28th, 2020, the corresponding PE is 21.2918.29pm 17.20 times respectively. Based on the long-term positive view of the economic development of the Xijiang River Basin, the Pearl River Delta and the Yangtze River Delta, as well as the future development of the company's port and shipping business, energy and environmental protection, we maintain the company's "buy" rating.
Risk hint
There is a possibility that the macroeconomic downturn may exceed expectations, the duration of the epidemic, the progress of resumption, and the risk of goodwill impairment.