China Construction Group (603018): Revenue growth exceeds 50%, strong performance in 2019

China Construction Group (603018): Revenue growth exceeds 50%, strong performance in 2019

China Construction Group released its 2018 annual report: the company realized revenue 41.

98 ppm, an increase of 51 in ten years.

23%; net profit attributable to mother 3.

960,000 yuan, an increase of 33 in ten years.

54%, of which Q4 income increased by 34 each year.


At the same time, the company announced the profit distribution plan for 2018: a cash dividend of 3 per 10 shares.

8 yuan (including tax), 4 for every 10 shares.


In 2018, the company’s new business volume was 64.

110,000 yuan, an increase of 24 over the previous year.


Among them, the new business value of survey and design business 57.

50,000 yuan, an increase of 21 in ten years.


The company’s revenue: quarterly, Q1, Q2, Q3 and Q4 increased by 31 compared with the same period last year.

15%, 96.

78%, 55.

51% and 34.

36%; in terms of business, survey and design of major businesses and planning and research have increased by 44.

96% and 24.

68%, accounting for 62% and 10%, while the newly expanded EPC business grew more than twice, accounting for 15%.

7%; within and outside Jiangsu Province, respectively, increased by 59.

69%, 39.

35%, the growth in Jiangsu Province is faster than that outside the province, which is related to the better financial situation of Jiangsu Province and the faster growth of bidding and tendering; the parent and subsidiary companies increased by 56 respectively.

69%, 18.


Looking at the profit side, the company achieved a comprehensive gross profit margin of 26 in 2018.

10%, a decrease of 5 from last year.

48pct, mainly due to the decline in the gross profit margin of survey and design and test and inspection business, and the increase in the proportion of EPC business with low gross profit margin.

Among them, the survey and design gross margin was 31.

42% carbon dioxide 4.

12pct, while the gross profit margin of the EPC business increased to 2.

55%; gross profit margins inside and outside of Jiangsu Province fell by 6.

17 points, 4.

77pct, mainly because the engineering business is mainly concentrated in the province.

The company achieved a net profit margin of 9 in 2018.

67%, a decrease of 1 from the previous year.18pct, the reason why the decrease is smaller than the gross profit margin is due to the decline in the proportion of three fees (-3.

09pct) and the decline in the percentage of asset impairment losses (-0.


The company’s periodical injection of research and development expenses in 201811.

4%, downgraded by 3 per year.

09pct, mainly due to the decline in management expense ratio and sales expense ratio.

In terms of cash flow, the company’s net operating cash flow in 2018 was 1.

04 yuan, 0 lower than last year.

33 yuan, the deterioration of cash flow is mainly due to the decline in cash-to-cash ratio.

Earnings forecast and rating: We adjusted our earnings forecast for the company, and we expect EPS for 2019-2021 to be 1.

65 yuan, 1.

98 yuan, 2.

At 30 yuan, the PE corresponding to the closing price on March 5 was 12 respectively.

2 times, 10.

1x, 8.

7 times, maintaining the level of “prudent overweight”.

Risk reminder: Macroeconomic downside risks, orders in 厦门夜网 hand fall below expectations, business development outside the province is below expectations, mergers and acquisitions integration is below expectations, construction projects are slow