Gezhouba (600068): Engineering revenue accelerates and the performance of cement business is eye-catching

Gezhouba (600068): Engineering revenue accelerates and the performance of cement business is eye-catching
Gezhouba: A comprehensive construction central enterprise with diversified development.The company’s business scope covers eight major businesses including construction, environmental protection, real estate, cement, civil explosion, equipment manufacturing, and finance.The controlling shareholder of the company is Gezhouba Group Co., Ltd., with a shareholding ratio of 42.34%, the actual controller is the SASAC of the State Council. The new millennium alone has grown by 15.5%, project income accelerated.In the first three quarters of 2019, the company’s single-year growth of 15 in the new decade.5%, the first half of the project income increased by 20 per year.3%; we expect the company’s reserve contract amount at the end of the third quarter of 2019 to be around 3910, which is 3% of 2018 revenue.8 times, the company has too many orders 天津夜网 in hand, which can ensure a rapid growth in future revenue.Of the 2019H1 operating income, engineering revenue accounted for 57.5%, gross profit accounted for 39.7% is the main source of the company’s income and profits; both the cement and real estate revenues account for less than 10%, but their gross profits account for 24.9%, 12.1%, cement business became the company’s second largest source of profit. The cement business contributed the main profit increase, and the environmental protection business was in the adjustment period.Since August 2016, the cement price has continued to rise, and the company’s ex-factory cement price has reached an all-time high. The net profit attributable to the parent of the H1 cement subsidiary in 2019 increased by 76%, and it is expected to make a record profit.Assuming the cement sales volume in 2019 is the same as 2018, we expect the cement 无锡桑拿网 subsidiaries to achieve net profit attributable to their mothers.400000000.Affected by the adjustment of the annual solid waste policy, the upstream position of Gezhouba adjusted its environmental protection business positioning and development speed, and the company’s environmental protection revenue decreased by 27 in 2018.18%, down by 29 in 2019H1.73%. Financial indicators are at the forefront, undervalued, and high dividend yields are attractive.Gezhouba’s gross profit and net profit rank first among state-owned enterprises, Gezhouba’s cash flow improves year by year, and its cash-to-cash ratio and net profit cash content rank first.The company’s valuation is at a historically low level, only higher than that of China’s construction in the construction central enterprises; the company’s valuation has changed2.69%, to enhance the strength of the space. Based on the average dividend ratio from 2015 to 2017, the expected dividend yield in 2020 is as high as 4.About 6%. Earnings forecast and estimation: We raise the company’s EPS for 2019-2021 to 1.14 yuan, 1.28 yuan and 1.44 yuan, the price-earnings ratio corresponding to the closing price on January 3, 2020 was 6, respectively.0 times, 5.4 times, 4.7 times, given a “prudent overweight” rating. Risk reminders: Macroeconomic downside risks, infrastructure investment growth faster than expected, new starting point single landing progress is not eager to anticipate, overseas project shutdown risks, exchange rate risks, cement price downside risks, renewable resource price fluctuation risks