Actively carry out investment and M & A, which is expected to obtain high-quality asset injection.
The continuous release of capacity of acquired enterprises will further enhance the company’s performance.
Risk tips: the risk of performance prediction / valuation falling short of expectations, material price risk and overseas business risk.
The growth of revenue is mainly due to market expansion and the release of production potential of acquired enterprises.
The company actively carried out investment mergers and acquisitions to strengthen its business.
and Ningxia highway and bridge construction company.
On the other hand, according to the commitment to avoid horizontal competition made by Shandong Expressway Group, the controlling shareholder of the company, during the joint reorganization with Qilu transportation development group in August 2020, the company is expected to obtain the injection of high-quality assets such as Shandong Expressway Construction Group.
At the same time, the company continues to optimize its operation and continuously improve its profitability through standardized construction and internal resource allocation.
It is estimated that the Q4 revenue in 2021 will be 18.12 billion, with a year-on-year increase of 27.84%, the net profit attributable to the parent company will be 820 million, with a year-on-year increase of 15.98%, and the net profit not attributable to the parent company will be 779 million, with a year-on-year increase of 29.62%.
For the first time, the company is given a “buy” rating, and the target price is 9.85 yuan.
It is estimated that the company will realize an operating revenue of 57.22/74.7/95.96 billion yuan and a net profit attributable to the parent company of 2.12/28.8/3.72 billion yuan from 2021 to 2023, corresponding to 5.86/4.31/3.34 times of PE.
The company takes “quality first and customer-oriented” as its value.
While consolidating the advantages of traditional road and bridge construction, the company has actively explored business fields such as municipal administration and industrial parks.
According to the performance forecast released by the company, the expected revenue in 2021 is 57.22 billion yuan, a year-on-year increase of 66.17%, the net profit attributable to the parent is 2.12 billion yuan, a year-on-year increase of 58.20%, and the net profit not attributable to the parent is 2.06 billion yuan, a year-on-year increase of 83.81%.
By the end of the third quarter of 2021, 336 unfinished contracts had been signed, with an amount of 97.73 billion, a year-on-year increase of 97.1%, and there were sufficient orders on hand.
The company has special grade qualification for general contracting of Highway Engineering / municipal public works construction, 1269 registered constructors and 69 registered cost engineers, with strong technical strength.
The market development force of the company has been continuously strengthened.
In the course of more than 70 years of development, the construction projects have spread over more than 30 provinces, autonomous regions and more than a dozen overseas countries, creating a trustworthy advantageous brand of “Shandong Road and bridge”.
The revenue increased steadily and the operation continued to be optimized.
Advantageous brands, leading technologies and sufficient orders in hand.
(the original securities research report was released on January 27, 2022; Wang Xiaoyong Certificate No.: s0550519100002) for more research contents and wonderful activities, please.
In 2021, it successively acquired many high-quality targets such as Binzhou Transportation Development Group Co., Ltd.
