Sichuan Road and Bridge (600039): Full orders and accelerated release expected

The performance was slightly lower than expected, and the company was downgraded to an “overweight” rating company that released its 18-year annual report.

1.9 billion, +22.

15%, net profit attributable to mother 11.

7.2 billion, a year-on-year increase of +10.

11%, deducting non-attributed net profit growth rate of 8.

34%, lower than the market and our expectations.

Net operating cash flow of the company for 18 years 32.

3.3 billion, a year-on-year increase of +172.

78%, reaching a historical peak.

The company issued a 19-year business plan, with a target of achieving 450 trillion in revenue, and increasing market competition to obtain a new growth order of 200 trillion, and completed investment of more than 100 trillion.

We believe that the company has sufficient orders in hand and the project carryover speed is expected to accelerate the release of performance.

We expect the company to have an EPS of 19-21.

39/0.

48/0.

58 yuan, adjusted to the “overweight” level.

Q1-Q4 single quarter revenue growth rate was 18Q4, 18Q4 revenue growth rate increased significantly, full orders to promote performance growth.

96% / 15.

70% / 10.

94% / 36.

73%, Q4 revenue significantly increased beyond the growth rate, and we judge that it is related to the accelerated conversion of orders in hand.

The company’s bids for construction projects in 17/18 amounted to 474.

52/691.

0.2 million yuan, +138 compared with the same period last year.

72% / 45.

63%, two years of high growth.

The company’s revenue side has not been clearly reflected.

In addition, the company also won bids for 11 PPP projects in 18 years, corresponding to a total investment of 149.

6.3 billion.

Affected by the price increase of raw materials, the gross profit margin decreased. During the period, the expense ratio increased and the net profit margin decreased. The company’s 18-year comprehensive gross profit margin was 10.

69%, 0 in ten years.

39pct, in which the gross profit margin of the main construction business fell to 0.

4 points, we think it is mainly due to the increase in the price of sandstone raw materials.

In addition, the gross profit margin of trade sales has temporarily decreased.

03pct also lowered the overall gross profit margin.

The period expense rate (including R & D) rose for ten years.

49 points to 6.

34%, mainly due to the increase in management expense ratio of 0.

As a result of 66pct, the increase in the company’s scientific research investment led to an increase in research and development expenses by 128.25% is paramount.

Selling / financial expense ratio fell slightly to zero.

02/0.

19 points.

The company’s 18-year net profit margin dropped by 0 compared to 17 years.

42 points to 3.

Net operating cash flow of the company in 2002 32.

3.3 billion, an increase of 20 from 17 years.

480,000 yuan, +172 year-on-year.

78%, mainly due to the increase in income scale and the increase in the owner’s prepayment for construction projects.

Cash is 6 higher than before.

11 points to 90.

04%.

Asset mortgage debt 82 at the end of 18.

02%, a slight decrease of 0 in the previous 17 years.

26 points.

The US $ 2.5 billion convertible bonds to be issued by the company have been reviewed by the Securities Regulatory Commission, and a response report has been made to the feedback.

If the issue is successful, the company’s capital structure will be optimized and interest rates will be reduced.

Fully benefit from the development of Sichuan ‘s transportation infrastructure. According to the Sichuan Provincial 19th Annual Transport Work Conference, the province ‘s investment in highway and waterway construction this year has completed 140 billion yuan, and 10 new highways, 1,000 kilometers, and 1,500 kilometers of trunk roads in the country will be newly rebuilt.20,000 kilometers of rural roads.

In terms of railways, 北京夜网 the province will speed up the construction of Chengdu-Danda Wan, Chengdu-Irish High Speed Rail and the southern Sichuan Intercity, Hambanan, Sichuan-Tibet Railway from Ya’an to Nyingchi section.

Performance growth is expected to accelerate, and the rating will be upgraded to “overweight”. Due to the reduced performance base in 18 years, we expect EPS 0 in 19-21.

39/0.

48/0.

58 yuan (the original forecast for 19/20 is 0.

47/0.

55 yuan), currently comparable companies average 19FY PE10.

At 35X, the company has full orders on hand, and its performance has not yet fully reflected the high growth of the country’s newly signed contracts in the past two years. It is recognized that the company will be given 11X-12XPE in 19 years, corresponding to a target price of 4.

29-4.

68 yuan, adjusted to the “overweight”深圳桑拿网 level.

Risk Warning: The carry-over of orders in hand is not as fast as expected, and the issuance of convertible bonds fails.