Anhui Water Conservancy (600502): Growth of Q1 is steady and the performance of infrastructure real estate is expected

Matters: The company released the first quarter report of 2019 and realized operating income of 71.

810,000 yuan, a decrease of 2 compared with the same period last year.

74%; realized net profit attributable to shareholders of listed companies.

10 trillion, an increase of 0 over the same period last year.

51%, reduced by 2 after deduction.

twenty one%.

Implement basic EPS 0.

07 yuan.

The growth rate of Q1 performance was stable, the net profit margin for sales increased, and asset impairment losses decreased: the company’s Q1 2019 revenue and net profit attributable to its mothers increased by -2.

74%, 0.

51%, all in the last 5 years (2015?
2019) The respective growth rates are in the middle.

The non-recurring profit and loss of the company at the initial stage is zero.

05 ‰, a slight increase of 3 million yuan compared to 2018Q1.

The reported average gross profit margin is 7.

53%, a decrease of 0 from the first quarter of 2018.


The ratio of initial management expenses + R & D expenses to revenue is 4.

65%, a year up 0.

6 pct, mainly for the increase of administrative expenses expenditure11.

21%; sales expense as a percentage of revenue is 0.

47%, a slight increase of 0 a year.

08 pct; financial expenses as a percentage of revenue is 1.

39%, a decrease of 0 per year.

08 pct, mainly due to the increase in interest income of PPP projects in the UN financial asset model accounting.

The initial asset impairment loss was -1.

250,000 yuan, a decrease of 86 from the first quarter of 2018.

96%, mainly due to the decrease in receivables and the reversal of impairment provisions.

Net sales margin reached 1.

58%, 0 before the first quarter of 2018.

12 pct, mainly because the profit growth rate is greater than the income growth rate.

The best ROE is 0.

98%, a decrease of 0 from 2018Q1.

39 pct, mainly due to minority shareholders ‘equity, due to the increase in equity and other equity instruments caused by the increase 南宁桑拿 in shareholders’ equity.

Operating cash increased, financing cash inflows increased, and the asset-liability ratio decreased slightly: The net cash flow from continuous company operating activities was -22.

79 trillion, a significant increase of 21 from the first quarter of 2018.

170,000 yuan, mainly for primary new land purchases1.

8 million US dollars and the expansion of payment for construction and construction costs; net cash flow from investment activities was -0.
280,000 yuan, a significant reduction in duplication compared to the first quarter of 2018.
29 trillion US dollars, mainly due to the decrease in the purchase of wealth management products by banks; the net cash flow from financing activities was 33.

07 million yuan, an increase of 20 inflows compared to the first quarter of 2018.

US $ 2.3 billion, mainly due to the increase in long-term bank borrowings, of which short-term and long-term borrowings increased by 12 respectively.

2, 10.

1.7 billion.

The balance of monetary funds at the end of the period was 97.

3 billion, an increase of 11 from the beginning of the period.

97 ppm, mainly due to an increase in financing cash inflows and a decrease in investment cash.

Restructuring of assets and liabilities of the company at the end of the period84.

84%, which is basically the same as the beginning of the period, which is 0 lower than 2018Q1.

58 pct; such as assets and liabilities reorganization after checking out advance accounts 66.

65%, a decrease from the beginning of the period and 2018Q1.

Total accounts receivable and notes receivable at the end of the period were 161.

39 trillion, down 18 trillion earlier.

Funds received in advance at the end of the period were 135.

24 ppm, an increase of 18 from the beginning.


06 million, we judge that it mainly contributed to the advance sales of real estate business.

Q1 new contract value decreased, PPP, EPC model proportion increase expected to drive the gross profit margin of infrastructure business, real estate business in 2019 can be expected: According to the company’s announcement of the first quarter of 2019, the main operating data show that the new Q1 2019 company contract value69.

71 ppm, a reduction of 36 per year.

twenty three%.

As of the end of 2018, the company’s single construction unfinished projects, PPP unfinished projects and EPC unfinished projects accounted for 59% of the remaining contract amounts.

92%, 34.

81% and 5.

27%, we expect the company’s PPP and EPC business to continue to increase in 2019.

The company’s PPP and EPC projects have higher gross profit margins and are expected to drive the company’s construction business profitability to continue to increase.

At the same time, in terms of the company’s real estate business, as of the end of 2018, the company’s advance payment for house sales increased by 96.

78%, until 2019Q1 advance sales of housing sales will increase the budget of advance collection by 15.

41%, the company’s pre-sale proceeds began to be concentrated in 2019; the company’s pre-sale house prices also increased significantly. In 2018, the company raised an average pre-sale price of 5,845 yuan / square meter, an increase of 7.

36%, we judge that the increase in the average pre-sale price will drive the company’s real estate gross margin to increase and enhance the profitability of the real estate business.

Investment suggestion: Maintain the company’s “Buy-A” investment rating with a 6-month target price of 7 yuan.

We expect the company’s operating income to be 427 in 2019-2021.

100,000 yuan, 465.

55 ppm and 502.

79 million US dollars, with annual growth of 10%, 9% and 8%, taking into account the optimization of the company’s engineering business structure, the increase in the proportion of PPP and EPC projects and the accelerated release of real estate business.10.4 billion, 13.

02 ppm and 15.

67 trillion, with growth rates of 30% and 25, respectively.

2% and 20.

The company’s business structure continued to optimize, performance release expectations accelerated, and venture capital business performance was significant. Employee shareholdings and executives’ increased holdings demonstrated confidence in the company’s development, maintaining the company’s “Buy-A” investment rating. The 6-month target price is7 yuan, 2019 dynamic PE is about 11.
6 times.

Risk warning: Infrastructure investment growth is slower than expected, PPP is regulated and rectified, interest rates are up, real estate market is shifted, performance is lower than expected, market-oriented debt-to-equity program is pushed ahead of expectations and other risks.