China Construction Group (603018): Q3 revenue scale temporary restructuring attributable to mother net profit maintained stable growth

Event: The company’s revenue for the first three quarters of 2019 was 27.

4.5 billion, an increase of 4.

07%, net profit attributable to mother is 2.

92 trillion, an increase of 20.

49%, net profit after deduction is 2.

60 trillion, the same increase of 16.


The decline in Q3 revenue may be caused by a combination of a high base and a decline in the industry’s prosperity.

In the third quarter, the company’s revenue growth rate is temporary. In the single quarter, Q1, Q2, and Q3 revenues increased by 34 respectively.

83%, 0.

86% and -11.

At 22%, the scale of revenue in the third quarter declined, and we believe that it was affected by the high base of 18Q3. The decline in the boom of the transportation infrastructure survey and design industry is also an important reason.

The gross profit margin drove the increase in net interest rate and the increase in operating cash.

The company’s net profit attributable to its parent increased by 20 in Q1 2019.

49%, Q1, Q2, and Q3 net profit attributable to mothers increased by 29 respectively.

07%, 20.

02% and 14.

36%, Q3 growth has improved.

With revenue indicators, the increase in net profit attributable to mothers has increased significantly, and we believe that a significant increase 西安耍耍网 in gross profit margin is preliminary.

Compared with the indicators of the same period last year, the company’s gross profit margin increased by 1 in Q3 2019.

77 pct to 31.


For the period expense ratio, the sales expense ratio decreased by 0.

16 pct to 4.

33%, the management expense ratio (including research and development expenses) increased by 0.

64 to 11.

09%, of which research and development expenses increased significantly by 30.

31%, mainly because the company increased R & D investment in the application of BIM technology, trunk roads, key railway technologies and comprehensive transportation, and the financial expense ratio dropped by 0.

19 pct to 0.

28%, the expense ratio increased by 0 during the period.

29 to 15.

70%, and the net margin increased by 1.

53 to 10.


In terms of cash flow, net operating cash flow was -3.

53 trillion, a net increase of 0 over the same period in 18 years.

6.3 billion, of which the cash-to-cash ratio increased by 4.

90 to 68.twenty two%.

In terms of debt ratio, 19Q3 company debt supplemented 61.

36%, a decrease of 0 from the same period of 18 years.


In the future, there is a lot of space for transportation investment, and the company will obviously benefit.

Jiangsu Province’s “Opinions on Accelerating the Construction of the Provincial Modern Comprehensive Transportation System” states that from 2018 to 2022, the total investment in the construction of railways, highways, waterways, aviation, pipelines, urban rails and urban expressways in Jiangsu will strive to exceed 10,000Ten thousand yuan.

In addition, the “Outline of Building a Strong Country in Transportation Construction” announced in September clarified the direction and goals of national transportation construction in the future. We believe that in the future, the company will obviously benefit from Jiangsu Province and national transportation construction.

Based on the rapid development of the business, the company has gradually improved the employee incentive system. After implementing the supplementary stock incentive in 2017, on August 13, 2019, the company announced that the share allocation repurchase was an employee incentive plan, with a total amount of 3000-6000.10,000 yuan, the repurchase price is not higher than 14 yuan / share, as of September 30, 2019, the company has repurchased 250.

710 thousand shares, accounting for 0 of the total share capital.

5398%, the repurchase amount is 2968.

8 million yuan, we believe that a more comprehensive incentive mechanism will be beneficial to the company’s long-term development.

Profit forecast and rating.

We expect the company’s EPS to be 1 in 19-20.

06 yuan and 1.

31 yuan, taking into account the new long-term single rapid growth and increasing employee shareholding incentives, the project progress continues to land, transformation, will benefit the integration of the Yangtze River Delta, giving 19-15 years price-earnings ratio, reasonable value range 14.


90 yuan, maintain the “preliminary market” rating.

risk warning.

Policy risk, repayment risk, economic intervention risk.