China State Construction (601668): Housing construction and real estate business perform brightly Minority shareholders profit or loss drags down profit growth
Matters: The company released its 2019 Interim Report and achieved 6854 operating income.
19 ‰, an increase of 16 per year.
4%; net profit attributable to shareholders of listed companies was 203.
08 million yuan, an increase of 6 every year.
1%, excluding non-recurring gains and losses is 191.
41 ppm, an increase of 1 per year.
5%; achieve basic EPS 0.
Housing construction and real estate business income recorded a high growth rate, and Q2 revenue increased significantly: the company achieved operating income of 6854 in 2019H1.
17 trillion, equivalent to 57 of the ten-year revenue in 2018.
15%, a year-on-year growth rate of 16.
From the perspective of business structure, the company’s housing construction, infrastructure, real estate and survey and design business respectively achieved revenue (without considering internal replacement) 4452.
3.1 billion (+18.
880,000 yuan (ten years +11.
110 thousand yuan (ten years +17.
430,000 yuan (one year +31.
30%). Revenue from all businesses maintained double-digit growth.
Housing construction business is the main source of revenue, accounting for 64.
96% (ten years +1.
26 pct), infrastructure, real estate and survey and design revenue accounted for 20 respectively.
50% (decade -0.
26% (decade +0.
10 pct), 0.
74% (decade +0.
From the perspective of market structure, the domestic business realized revenue of 6383.
7.5 billion (+16.
1%), with an income share of 93.
14% (one year-0.
24 pct); overseas business achieved revenue of 470.
4.4 billion (twice + 21.
00%), and the income ratio is 6.
86% (decade +0.2 pct), the external income growth rate of the Territory increased faster than last year.
By quarter, the company’s Q1 and Q2 achieved revenue of 2975 respectively.
770,000 yuan (ten years + 10).
43 MB (+21 per second.
67%), revenue growth in the second quarter increased significantly.
Initially, the company realized net profit attributable to shareholders of listed companies 203.
08 million yuan, equivalent to 53 years of net profit attributable to mothers in 2018.
11%, a year-on-year growth rate of 6.
1%, the same growth rate as the same period last year, non-recurring profit and loss totaled 11.
6.7 billion yuan, an increase of 8 over the same period last year.
8.8 billion yuan.
Initial operating profit and total profit increased by 15 respectively.
89%, we judge the profit and loss of minority shareholders (ten years +40.
82%) or affect the growth rate of net profit attributable to mothers.
The level of profit fluctuated slightly, and the increase in asset impairment losses was large: It was reported that the company’s comprehensive gross margin reached 10.
13%, zero accumulated in ten years.
From the perspective of business structure, the company’s gross profit margins for housing construction, infrastructure, real estate and survey and design business were 5 respectively.
10% (decade -0.
30 pct), 8.
7% (one year flat), 32.
70% (year -1.
20 pct) and 16.
30% (ten years +3.
30 pct), the gross profit margin of the survey and design business increased, and the gross profit margin of the other three main businesses showed small or flat status.
From the perspective of market structure, the company’s domestic business gross margin is 10.
4% (decade +0.
1 pct), gross margin of overseas business is 6.
60% (year -7.
20 pct), gross margin of overseas business extended.
Regarding period expenses, the reporting expenses company period expenses3.
22%, flat for one year; of which management costs increase by 17.
5%, mainly due to the expansion of business scale and management staff; sales expenses increase by 27 each year.
7%, mainly for real estate business advertising costs, promotion costs, sales commissions increased; financial costs decreased by 28.
6%, mainly due to the decrease in current discounts, the factoring fee for derecognition of budgets receivable was included in investment income.
In terms of asset impairment losses, asset companies suffered a total of 2 asset impairment and credit impairment losses.
92 ppm, a significant reduction of 23 previously.
In terms of net profit margin and ROE, the net sales profit margin was 4.
6四川耍耍网9%, up from 0 previously.
01 pct, considering the proportion of net profit attributable to mother, the net profit attributable to mother is 2.
96%, ten years zero.
ROE (expected average) is 7.
52%, a decrease of 0 per year.
As for inventories and contract assets, inventories decreased by 814 trillion from the beginning of the period; contract assets increased by 1,618 trillion, mainly due to an increase in completed and unsettled amounts.
The operating net cash inflow increased, and the accounts receivable decreased: the reported operating net cash flow of the continuous company was -828.
970,000 yuan, a repeated increase of 212 over the same period in 2018.
89 million, mainly due to increased purchases of goods and acceptance of labor payments.
Investment net cash flow was -124.
370,000 yuan, an increase of 30 over the same period in 2018.
800 million US dollars, mainly due to capital purchases and construction of fixed assets, intangible assets and other long-term assets increased cash payments.
Funding cash flow was 503.
4.8 billion, a net decrease of 380 compared to the same period in 2018.
30,000 yuan was mainly due to the absorption of investment, the decrease in cash flow from issuing bonds and the increase in cash paid for debt repayment.
At the end of the reporting period, the company’s monetary capital surplus was 2,724.
1.6 billion, a decrease of 450 from the end of 2018.
8.5 billion (-14.
20%), mainly due to the decrease in net cash inflows from planned activities.
In terms of capital structure, the company’s assets and liabilities at the end of the period supplemented 76.
54%, a decrease of 0 from the end of 2018.
40 pcts, a decrease of 2.
24 pct; debt restructuring after excluding advances 76.
52%, an increase of 9 over the end of 2018 and the same period in 2018.
As of the end of the reporting period, the company had an interest rate of 4,965.
89 ppm, an increase of 753 over the beginning of the year.
780,000 yuan, an increase of 7 from the end of the first half of 2018.
8%, of which long-term loans, non-current debt due within one year, should increase the amount of bonds.
In terms of accounts receivable, the company’s bills receivable and accounts receivable at the end of the period were 1611.
6.8 billion, a decrease of 278 from the end of 2018.
2.3 billion (-14.
72%), and the collection progress is good; it is included in the accounts receivable turnover sample4.
42, an increase from the same period in 2018.
From January to July, the amount of housing construction contracts increased, and real estate contracts and land reserves increased: In terms of newly signed contracts, according to the company’s latest business briefing report, the company’s new construction contract value from January to July 2019 was approximately 1.378 trillion yuan, increasing annually8.
7%, an increase of 6 over the same period in 2018.
From the perspective of business structure, the housing construction business has newly signed US $ 118.07 billion, an annual growth of 23.
3%; 2,504 trillion newly signed for infrastructure business, down 30 a year.
1%; 67 trillion newly signed for survey and design business, down 4 a year.
Compared with the January-July 2018 score, the growth rate of newly signed contracts for the housing construction business increased significantly by 18.
For one pct, the growth rate of newly signed contracts for infrastructure business and survey and design business decreased by 24 respectively.
3 pct, 16.
The new short-term single income of infrastructure construction may be mainly affected by the initial growth rate of fixed investment and the decline in PPP investment.
In terms of different regions, the territory newly signed USD 134.3 billion in January-July 2019, an increase of 7 years.
3% (one year-0.
2 pct); new overseas signings of 93.6 billion US dollars, an annual increase of 32.
9% (one year +79.
In terms of PPP business (30 pct), according to the interim report, as of the end of June 2019, the company had implemented 345 PPP projects with a planned investment of 495 billion yuan, covering areas including municipal engineering, transportation, comprehensive development of urban and industrial parks, ecological construction andEnvironmental protection, etc.
Judging from the volume of housing construction projects, the company’s housing construction business gradually constructed an area of 128.87 million square meters from January to July 2019, an increase of 6 per year.
7%; the newly started area is 21,312 million square meters, with an annual increase of -2.
8%; the completed area was 104.19 million square meters, an increase of 48 throughout the year.
In terms of real estate business, on January 7, 2018, the company’s real estate business contract contract was about 2208 trillion, with a long-term growth of 39.
4%, an increase of 21 over the same period last year.
7 pct; the company’s newly purchased land reserve is about 11.11 million square meters, and it has a land reserve of about 11.11 million square meters at the end of July.
Investment suggestion: We expect the company’s operating income growth rate from 2019 to 2021 will be 6 respectively.
5%, the growth rate of net profit attributable to mothers was 11 respectively.
6%, corresponding to 1, respectively.
26 yuan, maintaining the investment rating of Buy-A, giving the company a 6-month target price of 8.
08 yuan, equivalent to August 2019.
0x estimated P / E ratio.
Risk reminders: severe macroeconomic risks, rapid growth of domestic infrastructure investment risks, PPP project implementation failures to meet expected risks, overseas project implementation failures to meet expected risks, project repayment risks, etc.