Dongzhu Ecology (603359): 18Q4 performance stabilized and rebounded, debt ratio increased
The performance of 18Q4 stabilized and rebounded, and operating cash flow was reduced due to financing environment. The company realized operating income in 201815.
9南京桑拿网 .4 billion, an annual increase of 30.
2%; net profit attributable to mother 3.
2.6 billion, an annual increase of 34.
By quarter, Q1-Q4 achieved revenue of 3 respectively.
1.4 billion US dollars, respectively increased by 52% / 68% / 2% / 12%; Q1-Q4 respectively achieved net profit return to mother 0.
US $ 8.5 billion, with changes of +65% / + 87% /-17% / + 24% in one year, Q4 performance stabilized and rebounded.
The company’s 18-year gross margin / net margin was 28 respectively.
2% / 20.
4%, down by 0 in the earlier 17 years.
The net cash flow from operating activities was -7041 million (17.53 million yuan in 17 years). The decrease in net operating cash flow was mainly affected by financing environment factors, but the gradual replacement of the financing environment continued to improve, and the company’s future cash flow is expected to improve.
The company’s 18-year cash-to-cash ratio and cash-to-cash ratio were 44.
1% / 46.
7%, down 11 in the previous 17 years.
7pct, indicating that the company’s average share of upstream and downstream share of the company increased, but the cash payment ratio decreased.
At the end of 18 years, the company’s assets and liabilities were reinjected.
6%, an increase of 6 from the bottom of 17.
The revenue of municipal road greening business has grown significantly. In terms of cash redundancy, the company’s ecological wetland business / municipal road greening business achieved operating income respectively.
3 ‰, a year increase of 24% / 92%; gross profit margins were 29.
1% / 27.
2%, a change of +1 from 17 years.
By region, the Central China region achieved operating income8.
US $ 600 million, a substantial increase of 372% previously, mainly due to the company’s newly signed “Rungan G328 National Road City Sectional Upgrade Project” in Central China, “Dengzhou Tuanhe National Wetland Park and Shelter Forest Construction Project”, “Dengzhou 穰”Deng Avenue Greening Project” and other projects (company annual report).
According to the business data announcement, the company’s new bid projects in 18 years / new year projects were 30.3/25.
800 million yuan, the company’s 19Q1 new bid projects / new year projects were 32.
50 ppm, a year-on-year increase of 277% / 131%; in the end, the company’s new winning projects / new subdivision projects were 73.
The company is currently in cash12.
300 million US dollars, accounting for about 26% of total assets, supplemented by excessive cash on hand, subsequent changes in the financing environment to further improve, the company’s new gradual advancement of continuous growth.
The purchase of the first phase of the employee stock ownership plan was completed. Caijin Document No. 10 helped to promote the implementation of equity incentives in the first half of 18 years for standardized companies in the industry. Performance conditions are that the net profit in 2018/2019/2020 will not increase compared to 2017.At 80% / 170% / 251%, that is to reach 4, respectively.
In addition, according to the company’s annual report, the company’s 2018 first phase of employee shareholding plans to gradually purchase the company’s stock 221.
60,000 shares with a turnover of approximately 3582.
The company’s equity incentive plan has relatively high conditions. The recent completion of the first phase of the employee stock purchase plan has demonstrated the company’s confidence in its own development.
The recent Finance Document No. 10, “Implementation Opinions of the Ministry of Finance on Promoting the Cooperative Development of Government and Social Capital Regulations” was issued, calling for effective prevention and control of hidden debt risks of local governments, and it was clear that “regulated PPP” will not form “government hidden debts”””, The quality and landing rate of newly signed projects may be further improved, which is good for leading PPP industry companies with stable performance and standardized projects.
Earnings forecast and investment rating In 2018, the financing environment was poor, and under the circumstances of PPP liquidation, the company’s performance still achieved steady growth, which demonstrated the company’s control of project risks.
In addition, the company’s recent new orders have increased significantly, supporting the company’s future revenue and performance growth.
It is estimated that the company’s net profit attributable to the mother in 19-21 will be 4 respectively.
The company’s current PE (TTM) 南宁桑拿is about 20 times, and the average PE (TTM) of A-share PPP garden enterprises is 24 times. Considering that the company’s performance and growth are better, we give the company 17 times PE in 19 years, and the company’s 19 year EPS is expected to be1.
43 yuan / share, the corresponding reasonable value is about 24.
3 yuan / share, maintain “Buy” rating.
Risk reminder: investment in fixed assets is less than expected, project progress is less than expected, exchange rate risk, goodwill impairment risk, investment merger and acquisition risk, repayment risk, etc.