China State Construction (601668): Real estate gross profit margin increased significantly, profitability continued to improve

Mar 30, 2020 桑拿

China State Construction (601668): Real estate gross profit margin increased significantly, profitability continued to improve

China State Construction (601668): Real estate gross profit margin increased significantly, profitability continued to improve

The order growth rate is steady, and the housing construction orders in 2019 will increase rapidly.

63 trillion, an increase of 7.


Affected by the substitution of local debt liquidation in 2018, strict PPP supervision and tightening of financial policies, the growth rate of infrastructure investment accelerated, and the growth rate of orders fell by 11 compared with the same period last year.

5 units.

The amount of newly signed contracts in China accounted for 82%.

The growth rate was stable at 7%, and due to the slower-than-expected landing rate of many major projects and the high base in the same period of the previous year, the number of overseas projects decreased by 21.


The total value of newly signed contracts in January-February 杭州夜网 2019 was 535.9 billion, an increase of 77.

2%, an increase of 41% over the same period last year.

In total, the housing construction business contributed a major increase, and the order growth rate picked up.

In 2019, the company plans to sign new contract amounts2.

82 trillion, an increase of 4.

4%, steady growth.

  The growth rate of revenue in the fourth quarter increased, and the gross profit margin of real estate increased significantly. The company’s operating income increased by 13 in 2018.

8% to 11.93 million yuan.

Real estate and infrastructure business revenues increased by 15 each.

9% and 19.

8%, real estate grew slightly, and accelerated the adjustment to the “532” industrial structure.

The company’s single-quarter revenue growth in the fourth quarter also increased by 26.

7%, mainly due to the remarkable growth rate of the housing construction business in the fourth quarter.

In 2018, there were approximately 37 joint ventures and associates related to the PPP statement, compared with 31 in the same period last year. The company’s associated transactions with joint ventures and associates amounted to approximately 38 billion yuan, accounting for 3 of the revenue.

2%, ranking rose 0 last year.

4 averages.

The company comprehensively cleaned up and reformed the existing PPP projects, and rationally controlled the expansion of PPP projects, which led to the advancement of PPP projects and the slowdown in infrastructure growth.

The company plans to achieve revenue in 20191.

27 trillion, an increase of 5.


In 2018, the company’s gross profit margin increased by 1 compared with the previous year.

4 units, of which the gross profit margin of the real estate business was 35%, an increase of 5.

9 percentage points, mainly due to the low cost of land acquisition in the early stage and the expansion of profit margins; the gross profit margin of housing construction also increased by 1.

1 single, or contribute part of gross margin growth.

  During the period, the expense ratio increased slightly, and the cash flow situation improved.

17%, the same increase of 0.

93 units, a significant growth rate.

The company’s sales expense ratio is also reduced by zero.

03 shares per share, basically unchanged; the management expense ratio also increased by 0.

27 budgets, mainly due to the increase in employee compensation, office expenses and travel expenses caused by business expansion; financial expense rate increased by 0.32 units, correspondingly increased the company’s long-term borrowings and bonds payable; the R & D expense ratio increased by zero.

37 singles, due to the company’s increased scientific and technological research and development promotion.

Asset impairment losses increased by 48.

5% to 104.

700 million, or due to the impact of the domestic economic downturn and fiscal pressure, resulting in an increase in the improvement of bad debt losses.

Taken together, the company’s net profit attributable to its mother increased by 16 in 18 years.

1% to 382.

400 million, return on net assets of 15.

97%, an increase of 0 from the previous.

15 units.

  In terms of cash flow, the cash ratio is 1.

04, cash is better than 1.

07, basically the same as last year.

The company’s net operating cash flow of 10.3 billion was mainly due to the good recovery of construction and sales.

At the end of the year, the company’s asset-liability ratio continued to decline1.

1 up to 76.

9%, fully meeting the budget pressure reduction target.

The company is divided into dividends in 20181.

68 yuan, the dividend rate is reduced by 1.

14 up to 18.


  Investment advice The company has ample orders in hand, and its revenue growth is stable. In addition, the company’s third phase of equity incentives has recently been completed, and the performance release momentum has been further enhanced.

In summary, the EPS for 19-21 is slightly increased to 1, respectively.

02, 1.


24 yuan / share (the original EPS forecast for 19-20 years was 0.

92, 0.

99 yuan / share), PE is 6.

3, 5.

7, 5.

1 times.

  The target price is slightly raised from 7 yuan to 7.

3 yuan, maintain “Buy” rating.

  Risk warning: fast-changing investment in fixed assets, and the progress of PPP projects is not as expected.