Tunnel Shares (600820) 2019 Interim Report Review: Profitability Slightly Replaces Benefiting Integration of the Yangtze River Delta

Tunnel 深圳桑拿网 Shares (600820) 2019 Interim Report Review: Profitability Slightly Replaces Benefiting Integration of the Yangtze River Delta
Event: Tunnel Shares released its semi-annual report for 2019.1H19 company revenue was 163.100 million, a year-on-year increase of +15.8%, net profit attributable to mother 8.8 billion, a year-on-year increase of +4.8%; 2Q19 revenue was 96.4 billion, a year-on-year increase of +17.4. Net profit attributable to mother.6 billion, a year-on-year increase of +2.6%. Revenue maintained a high growth rate, and profitability was slightly supplemented: the company’s revenue increased by 15 in 1H19.8%, the growth rate is reduced by 1 every year.7pcts, maintaining a relatively high level, of which the single 2Q19 revenue increased by 17.4%. In view of different industries, construction business and design services increased by 19 in 1H19.8%, -5.7%, respectively, exceeded the change by +1.6, -29.2%, construction revenue ratio increased by 3.1 to 92.7%.1H19 comprehensive gross profit margin 12.2% per year -0.5pct, of which the gross profit margin of construction business and design services is 10.0%, 26.8%, respectively changed to -0.6pct, -3.6pcts, the gross profit margin has been slightly reduced, but it is still at a reasonable level, which is considered to be related to the company’s confirmed revenue project structure, of which the comprehensive gross profit margin in 2Q19 was 11.9%, considering that the order structure is improving, it is judged that there is room for improvement in the second half of the year.The reduction in R & D investment in 1H19 led to a reduction in the expense ratio during the period1.6 pieces to 7.4%, the reduction of PPP / BOT projects caused the proportion of investment income to income to decrease by 1 every year.3pcts, driving the net interest rate down by 0.6 points to 5.4%. Relatively sufficient orders in hand, benefiting from the Yangtze River Delta’s integration strategy: the company broke through 257 in 1H19.4 billion, a year-on-year increase of +5.1%, of which construction business orders accounted for 92.0% in the last four quarters.500 million, which is one of the ten years of revenue in 18 years.6 times, orders in hand are relatively redundant, and performance is supplementary.The main business of construction business in the first ten years of 1H19 was +3 year-on-year.8%, the growth rate increased by 1 in advance.5 cases, the growth rate exceeded the improvement for the first time.In terms of different industries, the YoY of the new length of 1H19 railway junction / municipal / road / house construction is 10 respectively.6% / 14.3% /-38.3% / 118.9%, the growth rate is +15 each year.1 / + 23.5 / -66.3 / + 32.4pcts, housing construction continues to increase rapidly, rail transit, municipal improvement is not obvious to you, the road is significantly inclined.We believe that the company will noticeably benefit from the improvement of the integration strategy of the Yangtze River Delta, deepen its progress, and support demand, and judge that subsequent new breakthrough orders will continue to improve. The performance increase plan boosts gradual enthusiasm and maintains a “buy” rating: the company passed the performance increase plan at the end of 18, the 北京夜生活网 company’s performance reached 18-20 years to require shareholders to enjoy a certain amount of incentives, 18 years have reached the requirements, performance increasePlans help invigorate the company.As one of the domestic tunnel construction leaders and one of the East China Railway Handover Leaders, the company will benefit from the rebound in the railway handover industry. The integration of the Yangtze River Delta continues to advance. Relatively many orders in hand and regional infrastructure investment boom support demand, maintaining the company 19-21Annual return to mother’s net profit forecast 21.7/24.0/26.70,000 yuan, maintain “Buy” rating. Risk reminder: Infrastructure investment falls short of expectations; Rail transit project approvals fall short of expectations; raw material prices rise; accounts receivable risk