Events:
The company released its semi-annual report for 2023. 2023H1 realized revenue of 37.473 billion yuan, an increase of 11.23% over the same period last year, a net profit of 656 million yuan, an increase of 5.64% over the same period last year, and a non-return net profit of 709 million yuan, an increase of 23.82%.
Comments:
The performance grew steadily and the cash flow was positive. 2023Q1/Q2, the company achieved operating income of 16.17 billion yuan / 21.31 billion yuan, an increase of 11.3% and 11.2% compared with the same period last year, with a steady growth rate; 2023H1 achieved a sales gross profit of 11.55%, an increase of 1.12pct / 2023Q1amp Q2 over the same period last year to achieve a net profit of 350 million yuan / 310 million yuan 2023H1, the company achieved operating net cash flow of 1.69 billion yuan, from negative to positive compared with the same period last year, mainly contributed by the decrease of net outflow of PPP projects and the increase of net inflow of real estate business.
Newly signed orders reached a new high, and orders outside the province increased rapidly. 2023H1's newly signed engineering orders totaled 74.813 billion yuan, an increase of 10.59 percent over the same period last year, and semi-annual orders reached a new high, of which 10.4 billion yuan were newly signed outside the province, a substantial increase over the same period last year, and remarkable achievements in market expansion outside the province.
The development of the project construction business is stable, and the municipal engineering orders are increasing rapidly. The revenue of 2023H1's engineering construction business reached 27.837 billion yuan, an increase of 4.90% over the same period last year, of which the revenue of infrastructure / housing construction was 15.994 billion yuan / 11.843 billion yuan respectively, up or down 15.83% from the same period last year. 2023H1 newly signed orders for infrastructure projects totaled 53.381 billion yuan, an increase of 25.35 percent over the same period last year, accounting for 71.35 percent of the newly signed orders. The proportion of infrastructure orders with stable returns and good returns continued to increase, and the order structure was optimized. In infrastructure projects, municipal works orders were newly signed 32.099 billion yuan, an increase of 87.89 percent over the same period last year.
There has been a high increase in property sales and a decline in land reserves. 2023H1's real estate business achieved sales of 4.419 billion yuan, an increase of 120.29% over the same period last year, and operating income of 3.613 billion yuan, an increase of 52.15% over the same period last year.
2023H1 company added 207.5 mu of soil storage, and at the end of the period, it decreased somewhat compared with the previous period.
The development of new business has been accelerated. Set up a testing group, complete the integration of testing business, 2023H1 newly signed testing orders of 416 million yuan, an increase of 60.12% over the same period last year. 2023H1, the prefabricated construction business, signed a new order of 1.013 billion yuan, an increase of 142.9% over the same period last year. Explore BIPV business and complete the construction of photovoltaic power station on the roof of 100,000 square meters of factory building in Lu'an steel structure base.
Maintain a "buy" rating. It is estimated that from 2023 to 2025, the EPS is 0.95, 1.19, 1.51 yuan, and the corresponding PE is 5.37, 4.28, 3.39 times.
Risk hint: infrastructure investment is not as expected, payback risk, company performance is not as expected