The company is the road and bridge construction enterprise with the most complete construction qualification and the highest qualification level in Qinghai province, and is the leader in the construction industry of road and bridge projects in Qinghai province. The company has two first-class general contracting qualifications for road and bridge engineering and municipal public works construction, four professional contracting first-class qualifications for bridges, roads, roadbeds and tunnels, the second-class general contracting qualification for water conservancy and hydropower projects, and the third-level general contracting qualification for railway project construction. and the qualification for contracting projects abroad. The company is building or building about 3000 kilometers of roads, of which more than 90% are located in ethnic minority areas, with an average elevation of more than 3000 meters above sea level accounting for more than 70%. The company has strong engineering experience in permafrost, saline soil and other regional projects.
The company has transformed from a single engineering contractor to a strategic pattern of "four businesses and four industries". The company has successively acquired Longdi Electric Power, which is qualified for the third level of professional contracting for power transmission and transformation projects, Class C for power transmission and transformation design, and Guizhou Water Conservancy, which has the qualification for general contracting of water conservancy and hydropower projects. The company's qualification system has been further enriched. In the future, it will participate in the construction of power grid and energy Internet, strengthen the construction of electric power operation and maintenance center, and the construction of water conservancy and hydropower. The four major business areas of highway, electric power, water conservancy and hydropower and urban projects have been formed, and the upstream and downstream industrial chains have been ploughed deeply. The transformation of engineering contractors has been transformed into a full-life-cycle industrial chain pattern that integrates four major commercial sectors in the infrastructure field: engineering contractors, investors, product manufacturers and maintenance service providers.
Winning the bid PPP and two large orders of railway projects will form a strong support for the performance in the next few years.
In 17 years, as the leader of the consortium, the company won the bid for the first PPP highway project, with a total investment of about 5.749 billion yuan, which is an important starting point for the company's expansion in the PPP model; in January 18, the company won the bid for the general contract project for the construction project from Sanmenxia to Yuzhou of Sanyang Railway, with a construction cost of about 7 billion, which is a major breakthrough for the company to enter the field of railway construction as a private enterprise. Since 17 years ago, the company has announced that the cumulative amount of winning projects is about 13 billion yuan, which is more than 6 times the revenue of last year. The implementation of the two large orders is very important for future performance.
Profit forecast and valuation: the company's revenue for 17-19 years is estimated to be 2.06 Universe 2.49 trillion, the net profit of return to the parent is 0.86, 0.99 and 1.24 million, and the EPS is 0.22, 0.25 and 0.31 yuan, respectively. Corresponding to PE 66X/57X/46X, the company will be given the rating of "overweight" for the first time.
Risk increase: PPP project is not as expected, railway construction project is not as expected.