China Railway (601390) Quarterly Review: Performance Exceeds Expectation Order Growth Continues to Rebound
The performance exceeded expectations, and the company maintained its “overweight” rating.
700 million, a year-on-year increase of +15.
4%, achieving net profit of 154.
800 million, a year-on-year increase of +18.
At 7%, net profit after deducting non-return to motherhood increased by 21% year-on-year, and performance exceeded our expectations of the market.
19Q1-3 The company’s net operating cash flow was -409.
2 trillion, more than 82 times a year.
4 trillion, cash flow is still under pressure.
As of the end of 19Q3, the company had 3 outstanding contracts in hand.
1 trillion, an increase of 7% over the end of 18, is 4 of 18 years of income.
2 times, the company has full orders in hand. We continue to be optimistic about the upward trend of order performance. It is expected that EPS in 19-21 will be 0.
05 yuan, maintaining the “overweight” level.
The net profit attributable to mothers increased in Q3, and the main construction business grew steadily in 19Q1-3, with an income growth rate of 15%.
4%, of which Q1 / Q2 / Q3 single quarter growth rate was 8% / 20% / 17%, Q3 revenue growth slightly changed, 19Q1-3 attributed to mother net profit growth rate of 18.
7%, of which Q1 / Q2 / Q3 single-quarter growth rate was 20% / 5% / 42% respectively. The accelerated recovery of performance was mainly due to the high growth of the main construction business and the loss of asset impairment (including credit) in the first three quarters.50%.
In 19Q1-3, the company realized construction business income of 4,964 trillion, a year-on-year increase of +17.
8%, the main construction business maintained a steady growth, and the three businesses of survey and design / equipment manufacturing / real estate development achieved revenue of 112.
400 million, a year-on-year increase of +7.
4% / + 7% / + 13.
2%, real estate business revenue growth rate was earlier than 19H1 (12.
6%) slightly improved.
The net interest rate increased, the cost control ability was enhanced, and the asset and liability structure was optimized.
19 points to 9.
99%, the interval of infrastructure construction / survey design / equipment manufacturing / actual gross profit margin changed by -0 respectively.
02 / -0.
41 / + 0.
13 / + 4.
41pct, net interest rate increased by 0 compared with the same period last year.
26 points to 2.
Cost during the period of 19Q1-3 5.
79%, a decrease of 0 every year.
1pct, where the sales / management (plus R & D) / financial expense ratios are 0.
51% / 4.60% / 0.
66%, respectively +0.
06 / -0.
03 / -0.
12pct, the cost control ability has been enhanced.
19Q1-3 Asset Mortgage 77.
28%, a decrease from the same period last year.
37pct, we believe that debt-to-equity swaps can alleviate the company’s financial burden to some extent and optimize the asset-liability structure.
In the new year, the order continues to accelerate, reaching the highest growth rate in 19 years. The total number of new contracts signed by the company in 19Q1-3 was 10896.
800 million, a year-on-year increase of +14.
5%, an increase of 4% from the earlier 19H1, of which Q3 single quarter +22.
7%, up 2 pct month-on-month, the highest growth rate in 18 years.
In sub-sectors, 19Q1-3 signed a new contract for infrastructure construction 9081.
90,000 yuan, +17.
9%, an increase of 4 from the earlier 19H1.
5pc, of which the railway / municipal high-rise growth rate reached 11% / 29%, respectively, is the leading rebound in infrastructure orders.
Q3 single quarter infrastructure construction YoY + 27.
6%, up 4 pct from the previous month, reaching the highest level in 18 years.
19Q1-3 Real Estate Sales 420.
700 million, a year-on-year increase of +15.
5% in the third quarter of a single quarter +41.
6%, real estate sales accelerated.
By region, 10308 new domestic contracts were signed in 19Q1-3.
500 million, a year-on-year increase of +13.
6%, 588 new contracts were signed overseas.
300 million, a year-on-year increase of +34.
8%, increasing overseas expansion.
Revenue and performance increase steadily. Maintain “overweight” rating company’s revenue and performance increase steadily, and the orders on hand are full. We expect the company’s EPS in 19-21 to be 0.
05 (previous average 0.
13 yuan, the 杭州桑拿网 adjustment is mainly due to the issuance of shares to purchase assets caused by changes in total equity), with reference to the current comparable company 19 years wind consensus 7
63 times PE level, recognition given to the company for 7 years 19 years.
0 times PE with a target price of 6.
48 yuan, maintaining the “overweight” level.
Risk warning: The carry-over of engineering orders is less than expected, and the improvement in gross profit margin is less sustainable than expected.