Tenda Construction (600512): Significant change in first quarter results in line with expected revenue conversion

Tenda Construction (600512): Significant change in first quarter results in line with expected revenue conversion
There are sufficient orders in hand, and the order is expected to continue to grow. In 2018, the company won the contract amount of 82.4.0 billion, an increase of 8.91%, of which, the amount of single construction contract increased by 90.03%, the amount of financing construction contract is reduced by 100%.Benefiting from the integration of the Yangtze River Delta and the infrastructure needs released by the Hangzhou Asian Games, orders are expected to continue to increase in the next few years.Currently the company has 228 projects under construction.50,000 yuan, 6 of the 2018 revenue.49 times.The company won the contract amount in the first quarter of 20192.5.9 billion, the decline declines, or the base was high due to the successful bid for the construction project of Hangzhou Metro Line 7 in the first quarter of 2018. There is room for improvement in gross profit margin, and revenue conversion promotes speedup. In 2018, the company achieved operating income of 35.1.3 billion, with a decrease of 2.13%.Among them, the operating income of engineering construction segment increased by 1.38%, real estate development business revenue decreased by 37.53%, or because the company will no longer add reserve land since 2014.The company’s gross profit margin in 2018 was 10.83%, same decrease of 2.43 average values, of which the gross profit margin of engineering construction business increased by zero.12 units, the gross profit margin of real estate development business decreased by 30.43 units, or affected by project closure.It is expected that the integrated development of the Yangtze River Delta will gradually increase and the demand for infrastructure in the Hangzhou Asian Games will increase. The company is expected to sign new high-margin PPP projects in the Yangtze River Delta region to increase gross profit margins, and accelerate the conversion of order revenue in 2019.The company achieved operating income in the first quarter of 20197.6.8 billion, an increase of 29.24%; gross profit margin 9.80%, the same minus 1.55 single, or high-margin PPP projects were completed in 2018. Affected by trust products, the expense ratio increased during the 18-year period, and the first-quarter performance conversion was in line with the company’s expected period expense in 201812.4%, with an increase of 7 units, of which the sales expense ratio and management expense ratio are 0.3%, 3.4%, stable from the previous year; financial expenses 4.6%, the same increase of 3.Five fines, mainly due to the company’s payment of the trust plan priority income; R & D expense ratio 4.07%, the same increase of 3.18 units, mainly due to the company’s budget for construction method research in 2018.The company lost 0 in fair value changes in 2018.93 trillion, mainly due to the downturn in the stock market in 2018, the company’s investment in the trust product Shaan Guozheng Zheng No. 71 is serious.In 2018, the company achieved net profit attributable to mother.26 trillion, the same minus 90.56%.The stock market conditions improved in the first quarter of 2019, and trust products increased the company’s net profit by about 2.3.8 billion; Net profit of main business is about 0.6.2 billion, with a net interest rate of approximately 8%.In the first quarter of 2019, the company achieved a net profit of 300 million attributable to its mother, and its performance has changed significantly, in line with our expectations. The cash-to-cash ratio is higher than the cash-to-cash ratio, and the actual controller significantly increases the average price.89 yuan in 2018 the company’s cash ratio is 1.14, with an increase of 0.15 units; payout ratio is 1.72, increase by 0.A total of 72, or project advances due to the increase in projects started; net operating cash flow is 1.5.5 billion, with a decrease of 9.36%.The actual controller of the company increased its holdings of 4 trillion market capitalization shares from 2018 to the first quarter of 2019, 南京夜网论坛 increasing its average price by 2.89 yuan, accounting for 8 of the company’s total share capital.74%, showing the company’s actual controller’s confidence in the company’s long-term future development. Investment suggestions The integration of the Yangtze River Delta and the antiques of the Hangzhou 2022 Asian Games will release a lot of infrastructure needs. The company has obvious advantages in getting orders in the Yangtze River Delta. Orders are expected to continue to grow, and revenue conversion will accelerate.According to the company’s 2018 and first quarter results, we maintain the company’s EPS for 2019-2020 to 0.34, 0.The forecast of 38 yuan per share supplements the forecast EPS of 0 in 2021.38 yuan / share, corresponding PE is 8, 7, 7 times. Maintain “Buy” rating and maintain target price of 3.73 yuan. Risk warning:天津夜网 The project is not progressing as expected; the return of the investment trust plan will change with the fluctuation of the stock market.