1. Investment event
The company publishes three quarterly reports for 2020. In the first three quarters of 2020, the company realized operating income of 5.984 billion yuan, an increase of 21.02% over the same period last year, a net profit of 254 million yuan, an increase of 12.30% over the same period last year, and a net profit of 200 million yuan, an increase of 6.16% over the same period last year.
two。 Analysis and judgment
The results were in line with expectations and Q3's net profit improved in a single quarter. 1) in terms of revenue: in the first three quarters of 2020, the company achieved operating income of 5.984 billion yuan, an increase of 21.02% over the same period last year. Of this total, Q3 had a single-quarter operating income of 2.217 billion yuan, an increase of 47.90% over the same period last year. 2) net profit: in the first three quarters of 2020, the company actually realized a net profit of 254 million yuan, an increase of 12.30% over the same period last year, and a net profit of 200 million yuan, an increase of 6.16% over the same period last year. Of which Q3 returned to its mother in a single quarter with a net profit of 64 million yuan, an increase of 14.29% over the same period last year. 3) Gross / net profit margin: in the first three quarters of 2020, the company's gross profit margin was 19.97%, which was 2.59pct lower than the same period last year; and the net profit rate was 4.84%, lower 0.26pct than the same period last year. 4) expense rate: the expense rate during the first three quarters of 2020 was 14.84%, which was lower than that of the same period last year (2.36pct). Among them, the sales expense rate is 0.77%, which is 0.30pct lower than the same period last year; the management expense rate is 14.04%, which is 1.96pct lower than the same period last year; and the financial expense rate is 0.03%, which is lower 0.10pct than the same period last year. 5) in terms of assets and liabilities: accounts receivable and bills were 2.318 billion yuan, up 5.23% from the same period last year, accounting for 20.06% of total assets, down 3.93pct from the same period last year; accounts and bills payable were 4.173 billion yuan, up 43.38% from the same period last year, accounting for 51.09% of liabilities, up 3.25pct from the same period last year; the asset-liability ratio was 70.69%, increasing 4.45pct over the same period last year. The contract assets were 2.451 billion yuan, an increase of 82.53% over the same period last year, mainly due to the corresponding increase in the project payment to be settled with the increase of the project contracting business. 6) Cash flow: the company's operating cash flow was-229 million yuan, which was 31 million yuan lower than the same period last year, mainly due to the increase in actual income in the main business sector compared with the same period last year.
Diversified business layout + market development drives revenue growth. 1) based on the local market in Shanghai, the company actively develops domestic and foreign markets. Domestic market: the company closely follows the strategy of national key industries and key regions, and follows up the construction hotspots such as Xiongan New area, Guangdong-Hong Kong-Macau Greater Bay Area and Shanghai Lingang New area. In 2020, the company has undertaken major projects such as Shanghai Light Source Phase II, New Development Bank headquarters Building, Comac aircraft Test Flight Center and Expo Cultural Park. Foreign market: focus on the countries and regional markets along the "Belt and Road Initiative" route for overseas development, such as the company successfully signed the Phnom Penh BOCC project in Cambodia in 2020. 2) the company carries on horizontal expansion, the business link covers the whole life cycle, focuses on the middle and high-end market, and the differentiated service enhances the company's core competitiveness.
3. A brief Analysis of Finance
Since 2014, the company's operating income and return net profit have maintained a steady growth trend. In the first three quarters of 2020, the company achieved an operating income of 5.984 billion yuan, an increase of 21.02% over the same period last year, and a net profit of 254 million yuan, an increase of 12.30% over the same period last year.
The company's 2020Q3 revenue increased significantly in a single quarter. 2020Q3's single-quarter operating income was 2.217 billion yuan, an increase of 47.90% over the same period last year, and its net profit was 64 million yuan, an increase of 14.29% over the same period last year.
The expense rate has been declining during the company period since 2014. In the first three quarters of 2020, the company's expense rate was 14.84%, a year-on-year reduction in 2.36pct. Among them, the sales expense rate is 0.77%, which is 0.30pct lower than the same period last year; the management expense rate is 14.04%, which is 1.96pct lower than the same period last year; and the financial expense rate is 0.03%, which is lower 0.10pct than the same period last year. In recent years, the company's gross profit margin has continued to decline, and the net profit margin has remained stable. In the first three quarters of 2020, the company's gross profit margin was 19.97%, down 2.59pct from the same period last year; and the net profit margin was 4.84%, lower 0.26pct than the same period last year.
4. Investment suggestion
It is estimated that the EPS of the company from 2020 to 2022 will be 0.59 soybean 0.66 RMB 0.72 per share, and the current stock price corresponding to the dynamic price-to-earnings ratio will be 14.0 pm 12.5 pm 11.5 times, maintaining the "recommended" rating.
Risk tips: the risk of a sharp decline in the growth rate of fixed asset investment; market operation risk; project management risk.
