Matters: the company released the first quarter report of 20201, during the reporting period, the company achieved operating income of 524 million yuan, an increase of 26.76% over the same period last year; net profit belonging to shareholders of listed companies was 99.8501 million yuan, up 26.05% over the same period last year; net profit belonging to shareholders of listed companies excluding non-recurring profits and losses was 99.6339 million yuan, up 28.60% over the same period last year; basic earnings per share was 0.31 yuan, an increase of 24.00% over the same period last year.
The growth rate of revenue performance has improved, the gross profit margin has declined slightly, and the expense rate has been effectively controlled during the period. The company's 2021Q1 realized operating income of 524 million yuan, an increase of 26.76% over the same period last year, an increase of 21.67% over 2019Q1 revenue, and a net profit of 99.8501 million yuan, an increase of 26.05% over the same period last year, and 21.89% higher than that of 2019Q1. The company's 2021Q1 revenue and performance achieved steady growth, the year-on-year growth rate and higher than the 2019Q1 growth rate are higher than the 2019Q1 and 2020Q1 growth level. During the period, the company's gross profit margin was 27.91%, down 0.27 pct from the same period last year. During the period, the expense rate was 5.45%, a decrease of 0.49 pct, compared with the same period last year, and the management expense rate decreased by 0.70 pct to 3.71% compared with the same period last year. The company's net interest rate was 18.78%, a slight decline of 0.28 pct,ROE (weighted) to 3.06% (year-on-year + 0.39 pct).
Operating cash outflow has narrowed, and there is plenty of room for leverage improvement. During the period, the net operating cash flow of the company was-137 million yuan, which was 5.52% lower than that of the same period last year. The net cash flow generated by fund-raising activities was-94 million yuan, an increase of 50 million yuan over the same period last year, mainly due to a substantial increase in margin deposits on bank acceptance instruments paid over the previous period. The net cash flow from investment activities was-72 million yuan, an increase of 69 million yuan over the same period last year. The monetary capital of the company at the end of the period was 699 million yuan, which was lower than that at the end of 2020 and the end of 2019Q1, accounting for 9.39% of the total assets. Accounts receivable and contract assets together accounted for 65.79% of total assets, an increase of 4.86 pct over the same period last year. The company's total liability at the end of the period is 4.074 billion yuan, which is mainly composed of notes payable and accounts payable (3.743 billion yuan). There are no interest-bearing liabilities. During the period, the company's asset-liability ratio was 54.73%, which was 0.67% lower than at the beginning of the period. Pct, 's debt ratio is at a low level in the garden industry, and there has been no interest-bearing debt, so there is plenty of room for leverage improvement in the future.
Under the background of carbon neutralization, the development of the garden industry is promising, and high-quality garden companies are expected to fully benefit. According to the company announcement, 2021Q1 Company accumulated 174 million yuan in winning projects, 477 million yuan in newly signed contracts (+ 72.40% compared with the same period last year), 1.94 billion yuan in winning projects in 2020, 1.886 billion yuan in newly signed contracts, and double the amount of newly signed contracts in 2019. At present, the company has sufficient orders on hand, which has a certain guarantee for future development. The company released the draft of the first phase of the employee stock ownership plan in 2021, which intends to implement the employee stock ownership plan to no more than 150 middle and senior managers and other core key employees with the repurchase shares of the company, which will help to fully mobilize the enthusiasm of employees, retain excellent management personnel and business backbones, and improve the cohesion of the company's employees and the competitiveness of the company. Under the background of the continuous promotion of the construction of ecological civilization and carbon neutralization and carbon peak, the garden industry is expected to usher in new development opportunities, the landing scale and progress of ecological projects can be expected, and high-quality garden enterprises may fully benefit, superimposed company currency funds are relatively abundant, no interest-bearing liabilities, sufficient leveraged promotion space, more room for future development.
Valuation and investment suggestions: the company's operating income from 2021 to 2023 is expected to be 2.852 billion yuan, 3.366 billion yuan and 3.904 billion yuan respectively, an increase of 22.0%, 18.0% and 16.0% respectively over the same period last year; the net profit belonging to the shareholders of the parent company is 465 million yuan, 553 million yuan and 645 million yuan respectively, up 22.1%, 19.0% and 16.6% year-on-year The EPS was 1.46,1.73,2.02 yuan respectively, the dynamic PE was 11.1,9.3,8.0 times, and the dynamic PB was 1.4,1.3,1.1 times, respectively. The company has more sufficient orders on hand to ensure future performance flexibility, while there is much room for improvement in the leverage of non-interest-bearing liabilities, which is expected to fully benefit the development of the industry in the context of new infrastructure and carbon neutrality.
Maintain the company's "buy-A" rating.
Risk hints: risks such as slow recovery of infrastructure investment, lower-than-expected project progress, and lower-than-expected performance.
