Production and operation are stable and improving. The company focuses on ready-mixed concrete and related business, and its main products are ready-mixed concrete. The production and sales volume of ready-mixed concrete products in 2021 was 61.0526 million cubic meters, an increase of 18.03% over the same period last year. In 2021, the operating income was 26.926 billion yuan, an increase of 14.96% over the same period last year; the net profit returned to the mother was 845 million yuan, an increase of 7.72% over the same period last year. Q1 in 2022, due to epidemic prevention and control, underemployment and weak market demand during the Spring Festival holiday, the operating income was about 4.662 billion yuan, down 6.19% from the same period last year.
Many advantages are outstanding and the development potential is strong. As the first independently listed specialized company built by China Construction Group and the only development platform for ready-mixed concrete business, it relies on China Construction Group in terms of business resources. the newly signed contract value of the company in 2021 was 53.269 billion yuan, an increase of 6.88% over the same period last year. And has the financing advantage of the listing platform, the company platform resource advantage is obvious. The company has long focused on ready-mixed concrete and related business, the industrial chain is complete and has a number of independent research and development of products, products and services competitive. In terms of business, the company constructs the "two wings" development pattern, one is to develop industrial Internet business and clarify the core product sequence of "5o3" at the present stage, and the other is to develop admixture business. In 2021, admixture sales revenue will increase by 88.88% compared with the same period last year.
Non-public offering of shares to improve the company's ability to resist risks. The company plans to introduce Anhui Conch Cement as the second largest shareholder through a non-public offering. Relationship with the upstream and downstream of the company's industrial chain, reduce the company's raw material procurement cost, and effectively alleviate the problem of raw material cost of ready-mixed concrete products in 2021. After deducting the issuance expenses, all the funds raised in this non-public offering are used to supplement liquidity and repay bank loans, which is conducive to optimizing the capital structure, improving corporate governance, further enriching the company's financial strength and improving the ability to resist risks.
Investment in the downstream market will improve in the future. In 2022, Q1, China's fixed asset investment expanded, an increase of 9.3% over the same period last year. In the context of "steady growth", infrastructure investment is an important starting point, and there is still a positive trend in the future. The downstream market of ready-mixed concrete industry is infrastructure construction, real estate development and so on, which is greatly affected by the scale of investment in fixed assets. Investment in the downstream market will increase the demand for the company's products and develop better in the future.
Cover for the first time, giving the company a "buy" rating. It is estimated that the EPS of the company from 2022 to 2024 is 0.74, 0.89, and the corresponding PE is 10.14, 8.52, and 7.01 times.
Risk hint: raw material prices rose faster than expected and profits fell short of expectations.