The company released its 2020 report: the company achieved an operating income of 17.787 billion yuan, down 16.99% from the same period last year, and a net profit of 809 million yuan, down 20.75% from the same period last year. Of this total, Q4 realized operating income of 2.96 billion yuan, down 44.15% from the same period last year, and realized net profit of 240 million yuan, down 39.04% from the same period last year.
In 2020, the newly signed contracts totaled 24.236 billion yuan, an increase of 19.02% over the same period last year, driven by the substantial increase in infrastructure orders, and the growth in housing construction orders was relatively stable. New Q1-Q4 signatures changed-23.36%, 129.84%,-25.87% and 5.61%, respectively, compared with the same period last year.
The new signatures for housing construction, infrastructure projects, professional engineering and architectural decoration changed by 10.58%, 117.64%,-40.56% and-4.44% respectively compared with the same period last year. The number of new projects in the single construction and financing contract mode increased by 11.81% and 56.20% respectively compared with the same period last year.
Revenue reached 17.787 billion yuan in 2020, a decrease of 16.99% compared with the same period last year, of which Q4 revenue decreased by 44.15% compared with the same period last year. This is mainly due to the fact that the company takes into account the market environment and the balance between capital investment and investment recovery to actively control the construction pace of the PPP project. As a result, the income contributed by the PPP project has declined. Q1-Q4 revenue fell 19.27%, 2.71%, 0.53% and 44.15%, respectively, compared with the same period last year. The income of civil construction, decoration and steel structure, water conservancy construction, PPP investment and real estate changed-22.73%, 53.98%,-21.32%, 30.89% and-62.03% respectively compared with the same period last year. The growth rate of decoration and steel structure income is remarkable. The company ploughs the assembly field, and has the first complete steel structure prefabricated housing system that has passed the evaluation of scientific and technological achievements of the Ministry of Housing and Construction. The business is expected to continue to grow in the future.
In 2020, the comprehensive gross profit margin reached 10.84%, an increase of 0.62 pct over the same period last year, indicating an increase in the gross profit margin of the main industry of civil construction.
The net profit rate was 4.68%, down 0.14pct from the same period last year. The increase in gross profit margin and the decrease in net profit margin were mainly due to the increase in expenses during the period. The expenditure rate for the whole year was 3.61%, an increase of 1.06 pct over the same period last year, and management, finance and R & D rates increased. The loss of credit + asset impairment was 132 million yuan, accounting for 0.74% of income, an increase of 0.14pct over the same period last year.
The net operating cash flow per share was 0.21 yuan, which was 0.03 yuan lower than that of last year, of which Q1-Q4 changed 0.32 yuan, 0.68 yuan,-0.02 yuan and-1.01 yuan respectively compared with the same period last year. The decline in Q4 was significantly due to the impact of slowing down the progress of PPP projects. The company has abundant PPP project reserves and has gradually entered the operation period. throughout the year, 10 new projects have entered the operation period, and the new government rebate has increased by 34%. It is expected that the progress of the PPP project will be accelerated in the future, which will lead to the overall performance repair and fund recovery.
Profit forecast and rating: we downgrade the company's EPS forecast for 2021-2023 to 0.60,0.66,0.73 yuan respectively, corresponding to the closing price PE of 8.5,7.7x and 7.0x respectively on April 20, maintaining the "prudent overweight" rating.
Risk tips: macroeconomic downside risks, lower-than-expected landing of on-hand orders, slow progress of construction projects, deterioration of cash flow, and higher-than-expected losses on bad debts.
