报告期新签合同同比增长78.47%，业绩有保障。报告期内，公司累计新签工程施工项目数量总计为166 个，累计新签项目金额为206.73 亿元，累计新签项目数量较上年同期减少18.63%，累计新签项目金额同比增长78.47%。2023年第三季度，公司新签工程施工项目数量总计为56 个，新签项目金额为50.88亿元，新签项目数量较上年同期减少37.08%，新签项目金额同比增长31.38%。Event: The company released its 2023 three-quarter report.
Revenue grew at a high rate as planned, and the fee rate declined during the period. In 2023Q1-3, the company achieved operating income of 13.51 billion yuan, an increase of 45.51% over the previous year, mainly because the amount of work achieved by projects under construction in this phase was higher than in the same period last year; the company achieved net profit of 500 million yuan, an increase of 18.33% over the previous year, and realized net profit after deducting 405 million yuan, an increase of 19.45% over the previous year. As of the end of the reporting period, the company's net operating cash flow was 758 million yuan, an increase of 518 million yuan over the same period last year, mainly due to an increase in value-added tax and additional tax payments, an increase in payment of performance guarantees, and an increase in cash payments to and to employees after merging the Pudong Design Institute. The company's gross margin for the reporting period was 7.45%, down 0.06pct year on year; the company's net profit margin was 3.74%, down 1.11pct year on year. The company's balance ratio was 75.04%, a year-on-year increase of 3.9 pct. The company's fee rate for the reporting period was 4.67%, down 0.16pct from the previous year. Among them, the management fee rate was 4.61%, down 0.01pct from the previous year.
The sales expense ratio was 0.03%, an increase of 0.01pct over the previous year. The financial expense ratio was 0.03%, down 0.17% year over year.
The number of new contracts signed during the reporting period increased by 78.47% year on year, and performance is guaranteed. During the reporting period, the total number of new construction projects signed by the company was 166, and the cumulative amount of newly signed projects was 20.673 billion yuan. The cumulative number of newly signed projects decreased by 18.63% compared to the same period last year, and the cumulative amount of newly signed projects increased by 78.47% year-on-year. In the third quarter of 2023, the total number of new construction projects signed by the company was 56, and the amount of newly signed projects was 5.088 billion yuan. The number of newly signed projects decreased by 37.08% compared to the same period last year, and the amount of newly signed projects increased by 31.38% year-on-year.
The company has signed a full range of new projects, and there is no worry about future performance.
The acquisition of Nanhui Construction Engineering strengthens housing construction and municipal businesses. On July 14, the company deliberated and passed the “Proposal on the Wholly-owned Subsidiary to Acquire 100% of the Shares and Related Transactions of Shanghai Nanhui Construction (Group) Co., Ltd.” Shanghai Pudong Road and Bridge (Group) Co., Ltd., a wholly-owned subsidiary of the company, plans to purchase 100% of the shares of Shanghai Nanhui Construction (Group) Co., Ltd. held by Shanghai Nanhui Development (Group) Co., Ltd. in cash. The acquisition constituted a merger of companies under the same control. Nanhui Construction Engineering has qualifications such as Level 1 General Contracting for Construction of Construction Projects, Level 1 General Contracting for Municipal Public Works Construction, and Level 1 Professional Contracting for Building Decoration Projects, etc., which have a positive effect on strengthening the company's housing construction, municipal administration, decoration and other businesses.
Investment suggestions: The company's revenue for 2023-2025 is estimated to be 17.534 billion yuan, 20.977 billion yuan, and 24.075 billion yuan, respectively, up 24.49%, 19.64%, and 14.77% year-on-year respectively. Net profit is 661 million yuan, 751 million yuan and 839 million yuan respectively, up 16.48%, 13.64%, 11.66%, and EPS is 0.68 yuan/share, 0.77 yuan/share, and 0.86 yuan/share. The PE corresponding to the current stock price is 9.53 times, 8.38 times, and 7.51 times, maintaining the “Recommended” rating.
Risk warning: the risk of an order falling short of expectations; the risk of unsuccessful collection of accounts receivable
