China Construction (601668) semi-annual report comment: Real estate business growth rebounds minority shareholders’ profit and loss dragged down to increase mother’s profit growth

Orders grew steadily in general, and the “Belt and Road” helped overseas market expansion companies. The value of newly-signed contracts in the first seven months of the year was US $ 147.8 billion, an increase of 8.


In terms of business, the new contract value of housing construction business was 118.07 million yuan, with an annual increase of 23.

3%, the high-end market advantage of the housing construction business has been consolidated and improved.

The newly signed contract value of infrastructure business was 2,504 million, which was reduced by 30 due to the rapid growth of fixed asset investment and purchasing power parity investment factors.


In terms of different regions, the value of newly signed overseas business contracts was 93.6 billion yuan, an annual increase of 32.

9%; the value of new domestic contracts signed was 13,443 trillion, an increase of 7.


As of the end of June 2019, the company was implementing 345 PPP projects, with a planned investment of 4950 trillion, an increase of 56.


It is expected that PPP projects and new overseas signings will continue to grow in the future.

The performance growth was stable, and the growth rate of real estate business income increased significantly. In the first half of the year, revenue reached 6854 trillion, with a long-term growth of 16%.


Housing construction revenue was 4452.

3.1 billion, an increase of 19.

1%; infrastructure revenue 1404.

8.8 billion, an increase of 11.

2%; real estate revenue was 977.

110,000 yuan, the ten-year growth rate rose to 19.

3%, China Shipping Real Estate contributed a share of which was US $ 141.1 billion, an annual increase of 41.


There were about 43 SPV companies related to PPP investment delisting, an increase from about 37 at the end of 18 years. The PPP delisting income was about 21 billion yuan, which was basically the same as the previous year.Speed back down.

The overall gross profit margin for the first half of the year was 10.

13%, a decline of 0 per year.

4 units.

Of which housing construction business 5.

1%, slightly contracted; infrastructure business.

7%, the same as last year; real estate 32.

7%, down 1.

Two units, or the company’s expansion of leased housing, shared ownership and other business models caused by increased costs.

The growth rate of the company’s real estate business with higher gross profit 北京桑拿洗浴保健 margins picked up. Through the marginal improvement in infrastructure investment, the gross profit margin will increase in the second half of the year.

The R & D expenditure increased significantly, and the losses and gains of minority shareholders dragged down the growth rate of the company’s profit in the first half of the period.

22%, an increase of 0.

08 averages.

The sales expense ratio and management expense ratio both increased by 0.

02 per share; financial expense ratio is also reduced by 0.

The 31 single ones are mainly due to the company’s discounted current transactions and reduced factoring procedures for derecognising receivables, which are included in investment income; the company increased its scientific and technological research and development promotion in this period, and its research and development costs were 32.6.4 billion, an increase of 319 in ten years.


Asset impairment losses were 12.

06 billion, down 54 every year.

02%, mainly due to the rise in land prices and land prices this year.

Profit and loss of minority shareholders 118.

3.8 billion, an increase of 40.

83%. We expect that the interest on perpetual debt of subsidiaries this year will increase compared to the previous year, and the restructuring of non-wholly owned subsidiary CNOOC’s profits will increase significantly.

Taken together, net profit attributable to the parent company was 203 in the first half of the year.

0.8 billion, an increase of 6.

1%, slower than revenue growth.

Operating cash flow improved in the second quarter, and the asset-liability ratio continued to decrease slightly. The company reported expected cash-on-return ratios.

0245, the same increase of 7 single, cash payment than 1.

In 1766, the same increase of 9 scattered, little movement.

Net operating cash flow was -828.

9.7 billion, an increase of 212 over the previous year.

8.9 billion net precipitation, but the net inflow of 15.2 billion in the second quarter, the pressure eased compared to the first quarter.

Asset-liability ratio 76.

54%, a slight decrease of 0 at the end of the previous 18 years.

4 units.

Investment advice The company has ample orders in hand, steady revenue growth, real estate business growth picking up, overseas business expanding in an orderly manner, coupled with the company’s third phase of equity incentives to complete rewards, and the performance release momentum is further enhanced.

Maintain EPS1 for 19-21 years.

02, 1.


24 yuan / share, corresponding to PE of 5.



4 times.

Maintain target price of 7.

3 yuan, maintain “Buy” rating.

Risk warning: fast-changing investment in fixed assets, and the progress of PPP projects is not as expected.