Shandong Road and Bridge (000498): 1H19 results exceeded expectations and strong order growth

Shandong Road and Bridge (000498): 1H19 results exceeded expectations and strong order growth

The first half of 2019 performance was lower than expected Shandong Road and Bridge announced 1H19 results: operating income 89.

60,000 yuan, an increase of 59 in ten years.

9%; net profit attributable to mother 1.

70,000 yuan, an increase of 28 in ten years.

8%; of which, the second quarter achieved revenue of 43.

0 ppm, an increase of 18 per year.

At 7%, net profit attributable to mothers was 68.98 million yuan, a decrease of 31 per year.

9%, due to the rapid increase in profit and loss of minority shareholders, performance exceeded the express report and our expectations.

1H19 company ‘s gross profit margin increased by 1.

1ppt to 8.

0%, mainly because the gross profit margin of road and bridge construction increased by 1.

3ppt; the total expense ratio during the period is reduced by 0.

2ppt, where the management / R & D / financial expense ratios are -0.

2 / + 0.

3 / -0.

3ppt; Bad debt losses were reversed from 1H18 to US $ 4,264 million plus 24.54 million yuan; 1H19’s operating margin continued to be flat, while the increase in the profit and loss of minority shareholders resulted in a 佛山桑拿网 reduction in net ratio.

5ppt to 1.


In 1H19, the company’s net operating cash inflow was 23.5 million yuan, which was a net change over the same period of the previous year1.

The improvement of US $ 8 million was mainly due to changes in working capital (reduction in details of operating receivables); net expansion of investment cash to expand scale.

6% to 14.

US $ 600 million, mainly due to the integration of investment in construction and increased foreign investment.

Development trend The strong growth of orders is expected to provide support for revenue recognition in the second half of the year.

In 1H19, the company announced that it won the bids for the Beijing-Taiwan Expressway, Weiri Expressway, and Jingxiong Expressway, and won a total of US $ 20.3 billion in the first half of the year.

We 青岛夜网 believe the company’s strong orders in the first half of the year are expected to support future revenue.

Actively develop investment business or put pressure on the company’s cash flow.

Absolutely actively develops investment business such as construction integration and investment construction integration. Since 2016, the net growth of investment cash has continued to expand.

It is recommended to pay attention to the increasing cash flow pressure on the company from the investment business scale.

Earnings forecasts and estimates We maintain our 2019/2020 net profit forecast7.


1.8 billion.

Currently corresponds to 6/2019/2020.

9 times / 5.

9 times price-earnings ratio.

We maintain our Outperform rating, but lower our target price as the industry’s estimated hub moves downwards.

4% to 5.

60 yuan, corresponding to 8.

0x / 6.8 times the 2019/2020 price-earnings ratio, which is 16 last year.

7% upside.

Risk Newly undertook business operations, and cash flow significantly deteriorated.