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宏信建发(9930.HK):业绩稳健增长 首次中期派息

Hongxin Construction and Development (9930.HK): Steady growth in performance, first interim dividend

華泰證券 ·  Aug 9, 2024 14:16

24H1 revenue/net profit to mother was +15.9%/+13.1%, maintaining the “purchase” 24H1 company's revenue/net profit of 4.87/0.27 billion yuan, +15.9%/+13.1% year-on-year, and continued steady growth, mainly due to the continuous growth in the company's equipment management scale and number of outlets. The controlling shareholder of 24H1 completed the second physical distribution of the company's shares. At the same time, the company first announced that it plans to pay HK$0.05 per share for the first time, continuing to work to improve liquidity and shareholder returns. We expect the company's net profit to be 1.08/1.23/1.41 billion yuan in 24-26, and comparable companies Bloomberg and Wind agree that the average is 12.5xPe in 24 years. Considering that the company's liquidity improvements will take time, the company will be given 7xPE in 24 years, with a target price of HK$2.59 to maintain a “purchase”.

The scale of asset-light management equipment increased dramatically, and the rental rate and gross margin declined slightly. 24H1 achieved revenue of 1.9/1.95/1.03 billion yuan, -24.3%/+70.6%/+84.1%, respectively; gross margin was 37.1%/27.0%/32.1%, respectively, -2.4/+6.3/-5.3pct. Overall gross margin decreased by 2.1 pct to 32.0%, mainly due to the decline in rental rate and rent. As of the end of 24H1, the management scale of the company's aerial work platform/new support system/new mold frame system reached 0.205 million units/1.613 million tons/0.748 million tons respectively, +28.1%/+4.0%/+14.9% year-on-year. Among them, the scale of the aerial work platform managed by the asset-light model increased 160.9% year-on-year to 0.073 million units, driving a significant increase in the company's asset management service revenue.

The decline in financing interest rates led to a marked decrease in the financial expense ratio. Capital expenditure mainly reflected the 24H1 company's period expense ratio of 21.9% in the first half of the year, with sales/management/financial expenses ratios of 5.4%/8.7%/7.8%, and +2.5/-1.7/-3.0pct, respectively. Among them, the increase in the sales expense ratio was mainly due to an increase in the number of company outlets and an increase in related employee expenses; while the decrease in average financing interest rate of 0.3 pct led to a marked decrease in the company's financial expenses ratio. 24H1's net operating cash flow was 1.35 billion yuan, +0.05 billion yuan year-on-year, mainly due to revenue growth. On the other hand, as the company increased its overseas equipment layout and actively developed new products, the company's capital expenditure increased by 3.43 billion yuan to 4.37 billion yuan year-on-year in the first half of the year.

Continuing to encrypt the layout of domestic outlets, the accelerated expansion of overseas business contributed. In the first half of the year, the company firmly implemented the “deep domestic cultivation” regional market business strategy in the domestic market, and continued to develop and cultivate in empty domestic areas and regions with low market share. As of 24H1, the domestic core business network layout reached 515, an increase of 24.1% over the previous year. In terms of overseas markets, while speeding up the development of the original Malaysian market, the company continues to explore potential markets in the Middle East. As of 24H1, the number of overseas business outlets reached 35, an increase of 31 over the previous year, and overseas business has begun to contribute to revenue growth.

Risk warning: Demand growth has slowed, asset management efficiency has fallen short of expectations, and profitability has declined.

The translation is provided by third-party software.


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