Description of the event
The company released its 2024 quarterly report, achieving operating income of 176.904 billion yuan, an increase of 0.18% over the previous year; attributable net profit of 6.141 billion yuan, an increase of 10.00% over the previous year; and net profit after deduction of 6.102 billion yuan, an increase of 12.14% over the previous year.
Incident comments
The company has solidly promoted the “Year of High Quality Development and Enhancement” campaign, adhered to the general working tone of seeking progress through progress, and breaking first before breaking, paid close attention to market management, continuously improved value creation capabilities, and achieved steady growth in its main business indicators. Operating revenue reached 176.904 billion yuan, up 0.18% year on year; operating profit reached 9.325 billion yuan, up 10.10% year on year; net profit attributable to shareholders of the parent company was 6.141 billion yuan, up 10.00% year on year.
Increased gross margin and credit impairment rebound led to an increase in net attributable margin. The company's comprehensive gross profit margin for the first quarter was 11.90%, up 0.27pct year on year. In terms of cost ratio, the company's expense ratio for the first quarter was 6.38%, up 0.23pct year on year. Among them, sales, management, R&D and finance expenses changed 0.12, 0.08, -0.20, 0.23pct to 0.41% year on year (mainly due to increased business development, increased market development expenses), 2.49%, 2.65% and 0.83% (mainly due to the entry of some investment projects into operation, financial expenses increased). Credit impairment gains of 357 million yuan increased by 612 million yuan year-on-year (mainly due to individual project collections and depreciation transfers); asset impairment losses of 238 million yuan increased by 0.2 billion yuan year-on-year. Taken together, the company's net attributable interest rate for the first quarter was 3.47%, up 0.31pct year on year, and 3.46% after deduction, up 0.38pct year on year.
The net operating cash outflow has increased, and the balance to liability ratio has increased. The company's net cash flow from operating activities in the first quarter was 39.635 billion yuan, an increase of 14.01 billion yuan year on year, mainly due to the increase in the company's business scale, the revenue ratio was 96.46%, down 0.27 pct year on year; the company's balance ratio increased 0.73 pct to 74.15% year on year, and the number of accounts receivable turnover days increased 5.53 to 59.63 days year on year.
New signings continued to grow steadily in the first quarter. In terms of new orders, 2024Q1 signed a new contract amount of 507.298 billion yuan, up 10.81% year-on-year, and completed 25.49% of the annual target. Among them, infrastructure construction business, infrastructure design business, dredging business and other businesses were 464.426 billion yuan (+15.75%), 10.131 billion yuan (-41.77%), 29.219 billion yuan (-17.82%), and 3,522 billion yuan (-3.23%), respectively.
Actively plan a market value management system, and clear business goals for 2024. 1) In terms of market value management, the company actively plans a market value management system, continuously promotes special work to improve the quality of listed companies of central enterprises, and strengthens the equity management and market value assessment and evaluation of listed companies. 2) The company guides the business target for 2024. The newly signed contract amount plan is a year-on-year growth rate of not less than 13.5%, and the revenue plan is a year-on-year growth rate of not less than 8.2%. The company's operations are steady, moderate and positive, and its performance is expected to continue to improve. The company is expected to achieve net profit of 26.121 billion yuan and 28.527 billion yuan in 2024 and 2025, corresponding to the current closing price PE is 5.72 and 5.24 times, respectively, with a “buy” rating.
Risk warning
1. Policy progress falls short of expectations;
2. Prices of raw materials fluctuate greatly.