Shandong Luqiao (000498): Steady business growth benefits Shandong infrastructure development
The performance has grown steadily, Shandong Province has ushered in the peak investment in transportation infrastructure, and maintained a “buy” rating. The company announced its 18-year annual report on the evening of March 14 and realized revenue of 147.
680,000 yuan, a year-on-year increase of +19.
25%, realizing net profit attributable to mother 6.
6.4 billion, a year-on-year increase of +15.
Performance growth is in line with our expectations.
The initial actual income / net profit and the 18-year budget increase by 9 each.
89 / -0.
10,000 yuan, basically completed the business plan.
The 18-year steady growth in performance is related to the scale of projects started and the corresponding increase in output value. It is also related to the increase in expenditure on transportation infrastructure in Shandong Province.
At the end of 18, the company had 185 outstanding projects in hand.
08 thousand yuan.
We are full of confidence in the company’s future performance, and we expect EPS0 in 19-21.
82 yuan, corresponding to the price range 6.
73 yuan, maintain “Buy” rating.
The business structure is stable, the increase in raw material prices has led to a decrease in gross profit margin, and significant improvement in cash flow. Road and bridge construction and maintenance construction revenue have increased by 17.
93% / 28.
50%, revenue accounted for 87.
99% / 9.
38%, is the company’s main source of performance.
The company’s overall gross profit margin fell by 1.
96 points to 10.
73%, we think it may be related to the increase in raw material prices.
As one of the important raw materials for cement, according to Digital Cement Network, the average tax-included price of high-standard bulk cement in East China for 18 years is 400.
5 yuan / ton, compared with the 17-year average price of 51 yuan / ton.
Thanks to better control of management costs, the cost rate during the period has dropped by 0 every year.
65 points to 3.
The company’s overall net profit for 18 years4.
58%, compared to 4 in 17 years.
67% remained basically stable.
In addition, operating cash flow improved significantly, with a net amount of 8.
300 million, and the income has increased by 22 compared with each year.
According to the company’s announcement, the subsidiary Luqiao Group has received funds from Shandong Tiefa Fund and China Everbright Jinyu Bonds for equity conversion.
500 million US dollars, the funds will be used to increase the registered capital of Road and Bridge Group and fully repay the debt.
Luqiao Group is the company’s core business platform, 成都桑拿网 with 18 years of revenue / net profit of 105.
320,000 yuan, accounting for 71 of the company’s revenue / net profit.
35% / 78.
The company has used Luqiao Group as a platform to implement debt-to-equity swaps, showing sufficient sincerity, and the interests of participants in debt-to-equity swaps have been better protected.
After the debt-for-equity swap, the Tiefa Fund holds the Luqiao Group14.
88% equity, which aims to form a closer binding relationship with the company.
As a major shareholder of the Tiefa Fund (50% of the shares), Tietou Group has undertaken the main layout of the railway construction in the province, which is expected to bring certain promotion to the company’s undertaking railway construction business in Shandong Province.
According to the press conference of the Provincial 北京桑拿洗浴保健 Government Information Office on March 12, Shandong Province plans to invest 162.2 billion US dollars in transportation infrastructure in 19 years, an increase of 71 compared with the planned growth of 18 years.
At 82%, the planned investment growth rate among the announced provincial units ranked second, and the absolute volume also ranked second.
The construction of roads / railways / ports / airports / stations was 997/327/80/180 / 3.8 billion yuan.
In terms of highway construction, we will closely focus on the goal of 7,400 kilometers of freeways to be opened to traffic in 2020, comprehensively speed up the construction of 27 highway projects under construction, build 7 highways, and the province’s highway mileage will exceed 6,400 kilometers.
Fully benefit from the large-scale development of infrastructure in Shandong Province. Steady growth can be expected. Maintaining a “Buy” rating. We expect EPS of 19-21.
82 yuan (previous value 19/20 years 0.
81 yuan), CAGR + 12%.
Comparable companies averaged PE 9 in 19 years.
95X, we approve 10X-11XPE for 19 years, corresponding to reasonable price range 6.
37 yuan, maintaining the “buy” rating risk warning: the implementation of market-oriented debt-to-equity swaps was lower than expected, and the price of materials rose more than expected.