Shanghai Construction Engineering (600170): Better-than-expected results benefit Yangtze River Delta integration

The performance was better than expected. The growth rate of Q4 revenue performance increased. The company released its 2018 annual report, and the company achieved revenue of 1705 in 18 years.

50,000 yuan, an annual increase of 20.

03%, it is planned to realize operating income of 1860 trillion in 19 years, the actual value of the earlier 18 years will increase by 9 as well.

1%; the company realized net profit attributable to mothers for 27 years.

80,000 yuan, an annual increase of 7.

56%, higher than the 5 of the performance bulletin.

65% growth rate, performance is better than expected.

In terms of quarters, Q1-Q4 achieved operating income of US $ 311/472/371/551 million, respectively, which increased by 16% / 19% / 12% / 30% respectively; Q1-Q4 achieved net profit attributable to mothers5.

3/7.

6/5.

2/9.

7 trillion, change +5 each year.

7% /-0.

7% /-18.

0% / + 41.

2%.

The company’s 佛山桑拿网 18-year gross margin / net margin was 11 respectively.

25% / 2.

01%, an increase of 0 from 17 years.

78/0.

05pct, overall improvement in profitability.

The company has a total of 12 dividends in 18 years.

02 ppm, the same as the 17-year amount, with a dividend ratio of 43.

2%, corresponding to a dividend budget of 3.

6%, which is at a relatively high level in the construction industry.

The company’s net operating cash flow was 24.

0 million yuan, a decrease of 34 from 17 years.

4 trillion, mainly because the subsidiary received a 68% reduction in construction capital from the owner’s BT project and PPP project.

700 million.

Although the net operating cash in 18 years has decreased compared to 17 years, considering the financing environment in 18 years, the company still maintained a higher net operating cash flow. The company’s net operating cash flow has beenpositive.

As of the end of 18 years, the company’s asset compensation was re-83.

65%, a decrease of 0 from 17 years.

84pct, although the level of debt ratio is high, but it has shown a downward trend in the past two years.

Steady growth in the new decade, benefiting from the integration of the Yangtze River Delta to promote the company’s single 3037 in the new decade.

10,000 yuan, an increase of 17 in ten years.

7%, which is 128% of the planned target, and the actual completion value is far beyond the target value. In 1919, the plan for the new millennium was 330.5 billion yuan.

Among them, the construction construction / design consulting / building industry respectively newly signed USD 246.81 / 161 / 13.8 billion, which has increased by 23 each time.

3% / 32.7% / 19.

8%.

As for the real estate business, the company signed a new property pre-sale contract for 120 years.

1 ‰, a decrease of 4 per year.

05%, with a total sales area of 330,000 square meters

190,000 square meters with a sales contract value of 8.

600 million), construction area of newly started projects.

10,000 square meters, with an additional construction area of 240,000 square meters.

In terms of urban construction investment business, the company signed four new PPP projects in Hangzhou, Huzhou, Wenzhou, Zhuhai and other places, and participated in investing in three urban renewal projects in Shanghai, totaling 8.7 billion yuan.

The company is a leading construction company in Shanghai. Through the acceleration of the integration of the Yangtze River Delta, the company strives to accept more orders to support future revenue growth and performance release.

Profit forecast and investment rating company is a leading construction company in the Yangtze River Delta region. It is backed by Shanghai SASAC and has a high dividend payout ratio. Under the Yangtze River Delta integration policy, the company’s future orders and income will grow rapidly.Profit and loss will also bring some investment income.

It is expected that the company will realize net profit attributable to mothers in 19-21, respectively.

4/36.

5/40.

200000000.

The company’s current PE (TTM) is 12 times, and the average PE (TTM) of state-owned enterprises in other areas of A-share construction is about 14 times.We predict that the company’s EPS in 19 will be 0.

363 yuan / share, corresponding to a reasonable value of 4.

4 yuan / share, maintain “Buy” rating.

Risk reminder: Project investment is less than expected, the order conversion speed drops faster than expected, the growth rate of new breakthrough orders penetrates faster than expected, the bad debt rate of accounts receivable rises, and the risk of rising labor costs.