Event: the company publishes three quarterly reports for 2023.
The growth of performance is relatively steady. 2023Q1-3, the company realized operating income of 2.036 billion yuan, an increase of 18.61% over the same period last year, a net profit of 375 million yuan, an increase of 11.95% over the same period last year, and a net profit of 376 million yuan, an increase of 15.29% over the same period last year. In a single quarter, 2023Q3 achieved an operating income of 613 million yuan, an increase of 6.38% over the same period last year, a net profit of 126 million yuan, an increase of 8.23% over the same period last year, and a net profit of 99.6998 million yuan, down 12.52% from the same period last year.
Gross profit margin has increased and investment cash flow has improved. 2023Q1-3, the company's gross profit margin was 37.98%, an increase of 0.99pct over the same period last year, and a net profit rate of 18.48%, a decrease of 1.02pct compared with the same period last year. 2023Q1-3, the net cash flow generated by the company's operating activities is-347 million yuan, which is negative compared with the same period last year. The cash flow is under pressure, mainly because the purchase money paid in this period is higher than that in the same period last year. The net cash flow generated by investment activities was 29.5271 million yuan, which was higher than that of the same period last year, mainly due to the investment and purchase of public REITs funds in the same period last year. The net cash flow generated by fund-raising activities was-156 million yuan, which was negative compared with the same period last year, mainly due to the fact that the investment absorbed in the current period was lower than that in the same period last year.
The leading enterprises of engineering design in the province benefit from the high prosperity of infrastructure investment in Anhui. Since 2023, infrastructure "steady growth" and "high-quality development" are still the main macroeconomic policies. In the first half of the year, Anhui Province completed a total of 70.07 billion yuan in fixed assets investment in transportation, exceeding the previous level, an increase of 25.5 percent over the same period last year, and completing the annual planned task of 56.0 percent. The company continues to strengthen the operation and development of the province, closely follow up the provincial highways, provincial highways, municipal roads and bridges and other key projects, continue to carry out multi-field and industry-wide operation, consolidate the leading position of local enterprises, and steadily expand market share. In the third quarter, the company won the bid Anhui Wantong Expressway Co., Ltd. for the comprehensive maintenance of long bridges in 2023, with a total bid amount of 137 million yuan. mainly for the Maanshan Yangtze River Bridge, Wangdong Yangtze River Bridge and other 12 cross-river bridge design consultation, technical services, testing, bridge maintenance construction (including ancillary facilities), emergency and other contents. As a leading enterprise of engineering consulting and design in Anhui Province, the company has a strong competitive advantage in the market. with the high prosperity of infrastructure investment in Anhui Province, there will be more room for growth.
Investment suggestion: the company's revenue from 2023 to 2025 is expected to be 3.253 billion yuan, 3.743 billion yuan and 4.276 billion yuan respectively, an increase of 16.24%, 15.09% and 14.22% respectively, and the net profit of returning mother is 507 million yuan, 579 million yuan and 651 million yuan respectively. The PE corresponding to the current stock price is 9.62,8.43,7.50x respectively, maintaining the "recommended" rating.
Risk hint: the risk that the landing of the order is not as expected; the risk that the recovery of accounts receivable is not as expected.