Main points of the report
Event description
Beixin Road and Bridge released the 2015 mid-term report, with operating income of 1.525 billion yuan, down 11.25% from the same period last year, gross profit of 18.76%, up 5.12% over the same period last year, and net profit of 15 million yuan, down 27.90% from 0.03 yuan. According to this calculation, the company's operating income in the second quarter was 1.059 billion yuan, down 15.28% from the same period last year, the gross profit was 18.17%, up 4.91% from the same period last year, and the attributable net profit was 11 million yuan, down 42.69% from the same period last year.
Event comment
The downturn in demand has led to a decline in revenue, and rising costs are a drag on performance: constrained by fiscal revenue and debt pressure, it is difficult for the central and local governments to invest heavily in infrastructure projects, and traditional highway and municipal construction projects decline. as a result, the company's road and bridge construction revenue fell 12.18% in the first half of the year compared with the same period last year, which in turn dragged down the overall revenue by 11.25%. Or due to a large decline in the prices of upstream cement and other raw materials, the company's gross profit margin in the first half of the year increased by 5.12% compared with the same period last year, driving gross profit up 52 million yuan. In terms of expenses, due to the increase in advertising fees and business publicity fees for subsidiary real estate sales projects, sales expenses increased by 47.01%, financial expenses increased by 32.00% due to the increase in current borrowing, and the expense rate increased by 4.71% over the same period last year. The loss of impairment of superimposed assets increased and non-operating income decreased, and the company's first-half net profit decreased by 27.09% compared with the same period last year.
Similarly, due to the decline in revenue and the sharp increase in fees during the period, the company's second-quarter net profit fell 42.69% from a year earlier.
In addition, the company forecasts a net profit of 0.22-37 million yuan in the first three quarters of 2015, an increase of-30%, 20%, and 0.04 yuan, respectively, and a net profit of 0.07-22 million yuan in the third quarter, an increase of 34.26%, 116.97% and 0.04 yuan, respectively.
Xinjiang road and bridge leader, significant location advantages: the company is located in Xinjiang, is one of the most competitive road and bridge construction enterprises in the northwest region, the current infrastructure in western China is relatively backward, domestic road and bridge projects still have some room for growth. At the same time, the company has rich overseas engineering experience and has undertaken projects in Kyrgyzstan, Tajikistan, Pakistan and other countries. With the gradual promotion of the national "Belt and Road Initiative" strategy, the company's overseas business is expected to grow rapidly.
It is estimated that the company's EPS in 2015 and 2016 will be 0.08 yuan and 0.13 yuan respectively, corresponding to PE130X and 83X.