Event: the company disclosed its third-quarter results and realized revenue of 1.314 billion yuan, an increase of 34.98% over the same period last year. Of this total, revenue in the third quarter alone reached 472 million yuan, an increase of 148.97% over the same period last year. The net profit of returning to the mother was 83.86 million yuan, an increase of 46.49% over the same period last year. Of this total, the net profit in the third quarter was 16.63 million yuan, an increase of 854.80% over the same period last year.
The accelerated landing of orders has promoted the rapid growth of the company's performance.
During the reporting period, the company expanded its business scale, increased the number of bid-winning projects, increased the number of construction projects started, and steadily advanced the settlement of completed projects. Tianjin Wuqing Project (the project medium-and long-term loans are all in place in the third quarter), Jiuquan Suzhou Project, Inner Mongolia Tongliao Project and Xinjiang Shaya Project have made good progress in a number of major projects, which have become the core reasons for the company's high performance growth. The financing of a number of major projects such as Suzhou in Gansu, Xiangyun and Midu in Yunnan are progressing smoothly, providing an important support for this year and future business development. In addition, the company's strategic transformation to agricultural science and technology and agricultural services has made steady progress. The construction of intelligent agricultural water projects and agricultural water design services increased by 2% and 26% respectively over the same period last year, while agricultural water informatization, agricultural water project operation services, and sales and services of agricultural water science and technology products and services increased by 1677%, 983% and 84% respectively over the same period last year. At the same time, the company's cooperation with Israel's Metzerplas is expected to significantly improve the company's technology and service level.
With the promotion of the rural revitalization strategy, the trade friction between China and the United States has further highlighted the domestic food security problem, and the company has ushered in a period of development opportunities.
Since the central government put forward the strategy of rural revitalization in 2017, the state has been continuously increasing its support for agriculture, rural areas and farmers.
Especially after the trade friction between China and the United States, the problem of domestic food security has become more prominent. To enhance domestic agricultural production capacity and ensure the high standard supply of domestic agricultural products has become an important direction of China's agricultural development. As a leading enterprise of farmland water-saving irrigation in China, the company provides integrated agricultural science, technology and operation services for China's agricultural production from water-saving irrigation, the integration of water and fertilizer, and intelligent agriculture, which is very important for the improvement of China's agricultural productivity and is expected to usher in a good development opportunity.
The "Yuanmou model" opens a new chapter in the upgrading of the company's business model, and the company's farmland operating area is expected to expand quickly.
"Yuanmou model" means that the company realizes the operation of irrigation and water conservancy facilities on the basis of farmland water-saving projects, and provides farmers with extended water and fertilizer integration, planting technology and other value-added services. Yuanmou model will realize the transformation and upgrading of the company's business model from engineering contractor to "farmland housekeeper". According to estimates, under the "Yuanmou model", the company's theoretical profit space per mu can reach 600 yuan / mu. As of 2018, Yuanmou project has an operating area of 76000 mu, and is expected to achieve full operation of 90,000 mu in 2019.
As a forerunner, the company is expected to rely on the dominant position of its listed companies and the experience of Yuanmou model to find and occupy superior agricultural resource areas throughout the country to achieve the rapid expansion of its farmland operating area. At present, the company has Yunnan Xiangyun, Binchuan and Gansu Wushan three projects with a total area of 150000 mu is in the construction period. It is estimated that the operating area of cash crops in 2019-2021 is expected to reach 150000 mu, 300000 mu and 600000 mu.
Give "buy" rating: it is estimated that in 2019-2021, the company will achieve an income of 26.253.441 million, an increase of 47.51%, 30.07%, 31.14%, and a net profit of 2.20, 330, 490, and 119.28%, 50.25, 48.35%, respectively, corresponding to EPS 0.28, 0.41 and 0.61 yuan, respectively, taking into account the company's broad space for development and rapid growth of performance. Continue to give a "buy" rating!
Risk tips: 1, the change of national policy; 2, the landing of the order is not as expected; 3, business transformation is not as expected.
