Dongzhu Ecology (603359): Profitability Steadily Increases Order Surplus Performance
Matters: The company announced its 2018 annual report, reporting that the combined company realized operating income15.
9.4 billion, a previous growth rate of 30.
17%; net profit attributable to owners of the parent company3.
2.6 billion, the previous growth rate was 34.
18%; basic return 1.
02 yuan, an annual increase of 17.
At the same time, the company plans to distribute a cash dividend of 1 for every 10 shares.
50 yuan (including tax).
The scale of business continued to accelerate, and municipal roads grew rapidly.
The company achieved operating income of 15 in 2018.
0.94 million yuan, an increase of 30 in ten years.
17%, an increase of 5% over 2017.
With an average of 18, the business scale has been accelerating for 2 consecutive years.
From the perspective of business structure, the operating income of the company’s ecological wetland business in 20189.
180,000 yuan, an increase of 24 in ten years.
05%, business accounted for 57.
59%; revenue from municipal road greening business6.
31 ppm, an increase of 91 in ten years.
97%, business accounted for 39.
In 2018, the company obtained the first-level qualification for municipal public works construction assembly packages, and the rapid growth of municipal road greening business. Since 2019, the company has won new municipal road greening projects such as the Hangzhou Jiangdong Avenue Reconstruction Project.It is expected that the company’s municipal road greening business will maintain rapid growth in the future.
The gross profit margin decreased slightly, and the expenses were well controlled during the period: the company’s comprehensive gross profit margin in 2018 was 28.
16%, a decline of 0 every year.
The gross profit margins of 23 units, ecological wetlands, municipal road greening and other businesses were 29.
08% and 27.
21%, the former increased by 1 in ten years.
18 averages, usually down by 1.
The 62 first-tier, the company’s gross margin decline is mainly due to the rapid increase in the proportion of municipal road green business.
The company’s period expenses are well controlled in 2018.
28%, a decline of 0 per year.
There are 78 totals, of which the management expense ratio, R & D expense ratio and financial expense ratio are 3 respectively.
82% and -0.
30%, the lowest level in the industry.
The company’s net interest rate reached a new high. In 2018, the company’s net interest rate was 20.
41%, an increase of 0 from 2017.
56 units. The sufficient funds for expansion are sufficient, and the low denial rate has a lot of leverage.
As of the end of 2018, the company’s monetary funds12.
270,000 yuan, 0 financial assets suspected of being sold.
83 trillion, the company’s available capital is about 13 trillion, accounting for about 81 of the company’s operating income in 2018.
56%, the cash income ratio are in the forefront of the garden industry, the business expansion is full of momentum.
At the same time, the company’s total assets are about 47.
23 trillion, mainly by monetary funds (12.
2.7 billion), bills receivable and accounts receivable (6.
3.6 billion), inventory (17.
10 billion) and long-term receivables (8.
1.8 billion) composition; 杭州桑拿网 total debt is about 20.
600,000 yuan, mainly by bills payable and accounts payable (18.
The company has no short-term borrowings, long-term borrowings, and interest-bearing debts payable, such as bonds;
62%, far lower than the average negative interest rate in the garden industry, and the company has a lot of room for future financial leverage.
The cash flow is generally good and the operating risks are controllable.
The company’s operating net cash flow from 2015 to 2018 was 2.
7.9 billion, 2.
1.6 billion and -0.
70 ppm, while the company’s operating income growth rate was 21 in the same period.
99% and 30.
17%, the company’s business scale expansion at the same time brought cash flow complexity, significantly better than other garden listed companies.
From the quarter of 2018, the company’s operating net cash flow from the first quarter to the fourth quarter of 2018 were -1.
4.5 billion, -0.
99 ppm, -0.
82 ppm and 2.
56 ppm, operating cash flow improved significantly in the fourth quarter.
At the same time, a large number of factors that caused the decrease in the company’s operating cash flow were the surge in the company’s bidding and bidding projects, the transfer of bidding deposits, performance bonds and other expenses.
40,000 yuan, an increase of 136% over 2017.
In the new decade, the business will grow at a high speed and the business development will be flexible.
In 2018, the company won 21 new bids, with a total of 30 new bids.
32 ppm, an increase of 51 in ten years.
83%, about twice the 2018 revenue.
According to the announcement of the company, since 2019, the company has gradually expanded the amount of winning projects to 74.
95 trillion, close to the bid amount of 10 years in 18 years2.
5 times the level. In 2019, the company’s new bids will increase exponentially.
At present, the company’s orders in hand are expected to be about 9 billion (unfinished in 2018 and carried forward to 2019 orders + 2019 new winning orders), and the company’s order revenue ratio is about 5.
65 times.The company’s order income ratio and cash income are relatively high, the asset-liability ratio has increased, and it has no interest to deny it. The company has great development momentum and its future performance is expected to continue to accelerate.
Estimates and investment recommendations: It is expected that the company’s operating income will grow at an annual rate of 48 in 2019-2021.
7% and 30.
5%, the net profit attributable to shareholders of the parent company increased by 35.
It is expected that the company’s operating income for 2019-2021 will be 23 respectively.
6.8 billion, 31.
4.3 billion, 41.
02 ppm; net profit attributable to shareholders of the parent company is 4, respectively.
4 billion, 6.
6.5 billion, 9.
The initial gain is 1.
38 yuan, 2.
09 yuan, 2.
86 yuan, dynamic PE is 14.
5 times, 9.
6 times, 7.
0 times, PB is 2 respectively.
2 times, 1.
9 times, 1.
As “the first share of National Wetland Park”, the company has incorporated its core competitiveness in the field of wetland restoration. The volume of orders + sufficient capital + low debt ratio has determined the company’s development momentum.Layout, maintain “Buy-A” rating, target price of 26.
4 yuan, corresponding to 19 in 2019.
Risk reminders: Fixed asset investment is accelerating, PPP projects are progressing slowly, project payments are not timely, and core staff are at risk.