Anhui Construction Engineering (600502): PPP, the release of real estate business’s performance to promote speed
Event: The company announced its 2019 Interim Report and the company achieved operating income of 190.
20,000 yuan, an increase of 16 in ten years.
50%; Net profit attributable to shareholders of the parent company.
89 ppm, an increase of 34 in ten years.
49%; budget benefit 0.
23 yuan, an annual increase of 35.
29% of the real estate development business broke out, and the release of performance promoted acceleration.
From January to June 2019, the company’s real estate business grew rapidly and realized operating income of 34.
580,000 yuan, an increase of 250 in ten years.
61%, driving a rapid growth of the company’s operating income.
At the core of the report, the company achieved operating income of 190.
20,000 yuan, an increase of 16 in ten years.
50%, mainly due to the outbreak of real estate business.
At the same time, the company’s engineering business structure continued to optimize, and the PPP business achieved rapid growth, driving the company’s profitability and helping the company’s performance release.
Reporting information, the company’s engineering business realized operating income of 138.
61 ppm, a reduction of 0 per year.
15%, but the PPP business grew rapidly, realizing operating income21.
9.5 billion, accounting for 11.
58%, helping the company’s performance to be released quickly.
The business structure continued to optimize and profitability continued to improve.
The company’s high-margin real estate development and PPP business accounted for an increase in the proportion.
20%, PPP business accounts for 11.
58%, the company’s real estate business accounted for 8 in 2018.
40%, PPP business accounted for 10.
86%, an increase of 9 respectively.
80 digits and 0.
From January to June 2019, the company’s real estate business gross margin7.
1.3 billion yuan, gross margin of 20.
63%; gross profit of PPP business 5.
8.7 billion, gross margin 26.
75%, the increase in the proportion of real estate and PPP business will significantly increase the company’s profitability.
From January to June 2019, the company’s gross profit margin was 10.
54%, an increase 杭州夜网论坛 of 1 per year.
73 units; net interest rate 2.
05%, a year to promote 0.
Orders for construction stabilized and rebounded, and land reserves grew rapidly.From January to June 2019, the company’s engineering business was 214 in the new decade.
49 trillion, a decline of 12 per year.
39%, including 69 in the new quarter in the first quarter.
71 trillion, 144 in the second quarter of the new decade.
78 ppm, a single-month increase of 80 in the new millennium in the second quarter.
30%, an annual increase of 6.
84%, the new chronic single enterprises rebounded steadily.
At the same time, the company’s real estate business contract area and contract provisions were 68.
44 thousand square meters and 37.
7.3 billion, down 26 each year.
16% and 35.
89%, the company’s real estate sales 北京桑拿洗浴保健 business is mainly due to the company’s insufficient land reserve. From January to June 2019, the company added 493 new land reserves.
28 acres, and the land reserve at the end of the period is only 673.
86 acres, an increase of 27 over the same period in 2018.
Operating cash flow continued to decrease and the asset-liability ratio was relatively high.
From January to June 2019, the company stepped up its efforts to acquire land, and at the same time increased its PPP business. The company’s operating cash flow increased in magnitude, a net allowance of 12.
At the same time, the company’s asset-liability ratio is high. As of the end of June 2019, the company’s asset-liability ratio was 84.
95%, a decrease of 1 from the same period in 2018.
However, the company’s debt received advance accounts as high as 127.
23 trillion, accounting for 18% of total debt.
50%, the advance payment of 104 of the advance payment.
US $ 6.2 billion. If the effect of advance payment is excluded, the company’s asset-liability ratio will drop significantly.
Investment suggestion: The company’s operating income is expected to be 427 in 2019-2021.
110,000 yuan, 465.
5.5 billion and 502.
79 trillion, an increase of 10.
00% and 8.
00%; expected net profit attributable to mothers is 10.
4 billion, 13.
02 ppm and 15.
67 trillion, an increase of 30 each year.
19% and 20.
33%; EPS are 0.
60 yuan, 0.
76 yuan and 0.91 yuan, corresponding to the forecast PE of the closing price on August 27, 2019 is 7, respectively.
1 times, 5.
7 times and 4.
7 times, the predicted PB is 1.
0 times, 0.
9 times and 0.
The company’s engineering business structure continued to optimize, real estate business grew rapidly, and profitability continued to improve.
At the same time, the company has benefited from the reform of state-owned enterprises. Employee stock ownership has helped drive performance and release momentum. It is optimistic about the company’s future growth and maintains a buy-A investment rating with a 6-month target price of 6.
Risk warning: real estate market adjustment, PPP regulations, investment in fixed assets is lower than expected, performance release is lower than expected, etc.