Events:
The company issued a forecast of results for the first three quarters of 2022, which is expected to achieve a net profit of 415 million yuan to 435 million yuan in the first three quarters of 2022, an increase of 27.65% to 33.80% over the same period last year, and a net profit of 330 million yuan to 350 million yuan, an increase of 23.39% to 30.87% over the same period last year.
Comments:
The company's Q3 performance exceeded expectations, mainly due to the increase in construction workload and investment income. According to the forecast, the company achieved a net profit of 1.84 to 204 million yuan in the third quarter, an increase of 76 percent to 85 percent over the same period last year, and a deduction of 1.63 to 183 million yuan, an increase of 80 percent and 102 percent over the same period last year. The company's performance accelerated significantly, mainly due to: 1) after the opening of Shanghai, the company's production order recovered well, and the cumulative construction workload increased compared with the same period last year, which contributed to the steady progress of the main business profits; 2) the company acquired Shanghai Pudong Architectural Design and Research Institute Co., Ltd. recognize the investment income; 3) the investment income and fair value change income of the company's financial products increased compared with the same period last year.
The ability of market-oriented finance will be further enhanced to ensure the needs of future development. In April 2022, the shareholders' meeting of the company examined and passed a motion on the company's proposed issuance of bonds of no more than 7 billion yuan. In May, the special asset support plan for the construction of Deloitte Park in Pudong, with the company as the original owner, received a letter from the Shanghai Stock Exchange. the total amount of the special plan issued does not exceed 717 million yuan. In June, the company's application for registration of corporate bonds not exceeding 2 billion yuan was approved. In July, the company's application for green debt registration of no more than 1 billion yuan was approved. The company's market-oriented financial capacity has been further enhanced to ensure the needs of future development, and financing costs are expected to decline.
Comply with the trend of market competition and establish the goal of digital transformation. Focusing on the value of supporting management, enabling business and service industry, the company focuses on Pudong, deep ploughing industry, mining data assets, and begins to build a digital base in Pudong. in order to achieve the digital transformation goal of enabling digital construction, improving management energy efficiency and enjoying financial services. In the construction section, the company continues to deepen the research and development and practical application of BIM technology, explores the application of construction schedule simulation in Linhai Highway and other projects, and uses BIM technology combined with UAV aerial photography and other measures to accurately control the project process and progress in the Yuqiao Road project.
Maintain a "buy" rating. According to the profit forecast adjusted according to the performance, the EPS of the company from 2022 to 2024 is 0.99pm, and the corresponding PE is 8.83 / 7.33max 6.11 times.
Risk tips: the impact of the epidemic, infrastructure investment is lower than expected, performance forecast and valuation are lower than expected
