China Communications Construction (601800): Steady growth in operating performance, infrastructure orders support domestic and overseas markets

China Communications Construction (601800): Steady growth in operating performance, infrastructure orders support domestic and overseas markets

Event: The company achieved revenue of 3746 in the first three quarters of 2019.

USD 8.9 billion, an annual increase of 14.

04%; realized operating profit of 172.

1.5 billion, an annual increase of 3.

65%;返回码: 500 网站打不开?重查 net profit attributable to mother is 133.

$ 4.1 billion, an increase of 3 per year.

73%; EPS is 0.

76 yuan, the average return on average net assets is 6.

78%.

Comments: 1. The revenue has achieved rapid growth, and the net profit attributable to mothers has grown faster. Q2 rebounded in the first three quarters of 2019.

USD 8.9 billion, an annual increase of 14.

04%; realized operating profit of 172.

1.5 billion, an annual increase of 3.

65%; net profit attributable to mother is 133.

$ 4.1 billion, an increase of 3 per year.

73%.

In terms of quarters, the company achieved revenues of 1022 in Q1-Q3 in 2019.

45, 1380.

27 and 1344.

1.6 billion, an increase of 9 each year.

64%, 19.

89%, 11.

86%; in terms of net profit attributable to mothers, Q1-Q3 were 39.

3, 46.

47 and 47.

64 trillion, an increase of 14 in the first quarter.

45%, a decrease of 1 in the second quarter.

99% in the third quarter.

66%, growth rate and Q2 rankings rebounded.

2. The gross profit margin has decreased, and the expense rate control is better. The debt rate has been decreasing year by year.

36 pp to 11.

82%.

By quarter, the company’s Q1-Q3 gross profit margins were 11 in each quarter.

72%, 11.

44% and 12.

46%, rising steadily.

Net profit in the first three quarters decreased by zero compared with the same period last year.

27 pp to 3.80%.

Period expenses7.

37%, of which the sales expense ratio, financial expense ratio and management expense ratio have been declining, which are 0.

19%, 1.

16% and 6.

03%, the cost situation is well controlled.

The R & D expense ratio increased slightly in the management expense ratio, and the company increased R & D investment.

Accounts receivable and notes receivable were 908.

31 trillion, accounting for 24% of revenue.

24%, of which bills receivable decreased by 53 earlier.

86%, due to the decrease in commercial acceptance bills.

The cash-to-cash ratio decreased by 5 compared with the same period last year.

25 pp to 86.

53%, the cash payment ratio fell by 4.

43 pp to 86.

76%.

Net operating cash flow -382.

US $ 2.5 billion, mainly due to purchases of goods, and cash paid for accepting services exceeded the increase.

Asset and liability accounting 74.

96%, down for four consecutive years.

3. The single-year steady growth in the new millennium, the infrastructure business has begun to develop strength, and the overseas market has picked up. The company’s newly signed contract amount in the first three quarters of 2019 is 6,536.

7.3 billion, an annual increase of 12.

16%, an increase of 16.6% over the same period last year
.

15 pp, the speed of taking orders is significantly improved.

Among them, the amount of new growth orders for infrastructure construction business, infrastructure design business, dredging business and other businesses were 5734.

9.4 billion, 290.

1 billion yuan, 439.

01 billion and 72.

6.8 billion yuan, an annual growth rate of 12.

6%, -8.

6%, 18.

7% and 59.

67%.

The growth rate of infrastructure design business increased by 9 over the same period last year.

At 7 pp, the growth rate of infrastructure construction business has remained stable this year, but it has significantly increased from last year. Affected by the steady growth policy of supplementary shortcomings, infrastructure has gradually developed its strength.

New overseas contract 1423.

7.9 billion yuan, a negative growth rate from the previous period to positive to 6.

51%, accounting for 22% of the company’s newly signed contracts, of which the infrastructure construction business was 1345.

9.6 billion yuan, accounting for 94 of the value of new overseas contracts.
53%, overseas markets have picked up compared with the first half.
The contract value of PPP investment projects is 1082.

8.9 billion, down 1 year.

77%, accounting for 17% of the company’s new contract value.

During the design and construction period, the company expects that the construction and installation contract amount can be 985.

9.5 billion.

4. The domestic infrastructure leader, dual-wheel drive of domestic + foreign business, maintaining the “strongly recommended -A” rating company is the infrastructure leader, consolidating the traditional business of infrastructure construction, accelerating the development of overseas markets, and gradually becoming the leader of the Belt and Road Initiative.

The reform plan for the evacuation business has been incorporated into the “Double Hundred Actions” of state-owned enterprise reform. At the same time, the company’s fundamentals are stable and a large number of orders are in hand.

Expected 19, 20 EPS1.

38 yuan, 1.

54 yuan, corresponding to PE 6.

9 times, 6.

2 times, maintaining the “highly recommended” level.

5. Risk reminder: Infrastructure investment rebounded less than expected, project advancement was less than expected, and the risk of payment recovery.