Shandong Luqiao (000498): Steady growth and improved operating cash flow

Shandong Luqiao (0杭州桑拿00498): Steady growth and improved operating cash flow

Investment Highlights The company achieved operating income of 147 in 2018.

680,000 yuan, an increase of 19.

25%, which is a preliminary agreement for the newly-winning projects from 2017 to 2018 and the project has been fully started, and the completion workload has increased through the same period of the previous year. At the end of 2018, the company’s unfinished project amount was 185.

08 ppm, a decrease of 14 per year.

34%.

Q1-Q4 revenues increased by 52 each year.

19%, 23.

21%, 31.

63%, -2.

76%, the first three quarters of revenue grew faster, but Q4 revenue slightly decreased; road and bridge construction, road and bridge maintenance construction, turnover materials and equipment rental sales, commercial concrete processing sales, engineering design 北京夜网 consulting respectively achieved operating income of 129.

9.5 billion, 13.

8.5 billion, 1.

9.1 billion, 1.

7.7 billion, 0.

22 trillion, an increase of 17 each year.

93%, 28.

51%, 144.

87%, -2.

21%, -24.

14%.

The company achieved a comprehensive gross profit margin of 10 in 2018.

73%, down by 1 every year.

96%, mainly due to the decline in the gross profit margin of the engineering construction business and the maintenance construction business; the net profit margin was achieved4.

58%, a decline of 0 every year.

The decrease of net profit margin was less than 09%, which was mainly due to the decrease in the expense ratio during the period and the decrease in the provision for impairment losses on assets.

The gross profit margin of road and bridge construction and road and bridge maintenance construction business changed by -2 respectively.

21%, -3.

21%, mainly due to the continuous rise in raw material prices.

The company’s expenses accounted for 4 during 2018.

44%, an increase of 0 from last year.

30%, mainly due to the increase in the company’s R & D expense ratio.

The company’s assets impairment loss accounted for -0 in 2018.

07%, a decrease of 2 from the previous year.

05%, mainly due to the company’s loss of bad debts 0 this year.

45 million and inventory loss was zero.

3.5 billion, down 70%.

The company’s net operating cash flow for one year in 2018 was zero.

74 yuan, an increase of 0 every year.53 yuan / share, mainly due to the substantial increase in sales repayment of projects under construction; at the same time, it also occurred that the company’s net investment cash flow in 2018 decreased by 11 compared with the previous year.

600 million, mainly due to a significant increase in investment funds for PPP and other projects.

Earnings forecast and grade: We have lowered the company’s earnings forecast and expect EPS to be 0 in 2019-2021.

66 yuan, 0.

73 yuan, 0.

At 81 yuan, the PE corresponding to the closing price on March 15 was 9 respectively.

8 times, 8.

8 times, 8.

0 times, maintaining the level of “prudent overweight”.