Pudong Construction (600284) 2018 Annual Report Review: Deep Plowing Shanghai Project’s High-Quality Q4 Indicators, Bright Debt Ratio, Low Expansion and Transformation
Event: The company released its 2018 annual report and achieved annual revenue of 36.
7.2 billion, an increase of 12.
59%, net profit attributable to mother 63.
7.2 billion, an increase of 5.
12%, achieving a deduction of 3.
6.1 billion, an increase of 14.
91%; Q4 indicators shine brighter than expected, driving expected orders and performance.
The company expects that revenue in 2019 will increase significantly by 65% to 6 billion, with great confidence in future operations.
Q4 revenue / attribution / deduction was increased by 10 respectively.
16% / 54.
74% / 72.
13%, the growth rate increased significantly by 13pp / 78pp / 112pp month-on-month, and changed by -10pp / 38 each year.
3pp / 69pp, the performance exceeded expectations, and judged that the workload of projects under construction has increased.
Gross profit margin 21.
15% increase by 6.
8pp, ring increase 11pp, period rate is 1.
17% decrease by one.
6pp, ring minus 5.
6pp, investment income 61.5 million increased by 52%, accounting for 25% of net profit, tax rate 19.
34% decrease by 4.
5pp, 14% net interest rate increased substantially by 3.
8pp; the new millennium alone was 3.4 billion, an increase of 68%, and the growth rate increased by 141pp, which led to a new record high of 6.5 billion contracts, an increase of 10%.
59% / 21.
95%, year to year change -16pp / 18.
5pp; the company expects revenue in 2019 to be 60.
3.8 billion, corresponding to an increase of 65%, demonstrating business ambitions; gross margin / period rate / net margin increased simultaneously, business expansion caused cash flow deterioration, and the return rate was at a level.
The reported average gross profit margin was 15%, an increase of 2.
4pp; sales / management / finance rates are 0.
16% / 6.
37%, a change of -0 in ten years.
1pp / 2.
4pp / -0.
1pp, the period fee also increased by 72%, the rate is 5.
68% increase by 2pp; investment income 2.
2.8 billion increased by 11%, accounting for 49% of net profit; 18% tax rate decreased by 1.
7pp; net interest rate 12.
57%, with an increase of 0.
6%; payments are now longer than this, with changes of -3.
6pp / 16.
8pp, operating cash flow-0.
2.3 billion, compared with the previous year 3.
The significant decline of US $ 5.3 billion was due to the increase in cash paid for business expansion; the end-period debt ratio was only 48.
8%. As of the end of the third quarter, the company’s dividend yield is 16pp lower than the average of the infrastructure sector companies. In the future, there is enough space to invest in the business.
Actively transform investment and financing operators. The project is located in a developed area with steady returns.
The company’s ground construction technology is in a leading position in the country. It has first-level qualifications such as general contracting for construction and municipal construction. It is rooted in Shanghai and faces the Yangtze River Delta. It has undertaken a large number of highway and road network projects in the region and will continue to benefit from the integrated construction 夜来香体验网 of the Yangtze River Delta.
Reported core company revenue in Shanghai32.
0.8 billion, a 16% increase, a 2pp to 87% increase, and a gross profit margin of 14.
62%, an increase of 1.
1pp; road and bridge construction to maintain the main business sector, income 35.
1.2 billion, accounting for about 97%, an increase of 15%.
6%, gross margin of 14.
16%, the same increase of 1.
7pp; The company actively transforms investment and financing operators, with incremental investment exceeding 30 billion yuan. Infrastructure investment projects in hand are mainly concentrated in the Yangtze River Delta, and the source of project revenue is stable.The replacement without affecting the company’s operating and financial conditions will help the company integrate regional development and tap more business and investment opportunities; profit forecast and investment grade: It is expected that the company’s operating income in 2019-2021 will be 50.
5.5 billion, 64.
09 billion, 78.
5.8 billion; net profit attributable to mothers was 5.
3.4 billion, 6.
04 billion and 6.
81 ppm; EPS is 0.
55 yuan, 0.
62 yuan and 0.
7 yuan, corresponding to PE are 16.
3X and 12.
Covered for the first time and given a “Recommended” rating.
Risk reminders: 1. Infrastructure investment falls short of expectations; 2. Market competition risk; 3. Material price risk.