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China Construction (601668) Quarterly Report Review: Q3 Performance Growth Boosts Real Estate Business Settlement Acceleration

China Construction (601668) Quarterly Report Review: Q3 Performance Growth Boosts Real Estate Business Settlement Acceleration

Core point of view: Third-quarter results accelerated, profitability improved. The company achieved operating income of USD 973.6 billion in 19Q1-3, a year-on-year increase of 15.

8%; net profit attributable to mother 299.

8% ten percent, an annual increase of 9.

8%; deduct non-net profit 281.

1ppm, an increase of 4 per year.


By quarter, the company’s Q1 / Q2 / Q3 revenue growth rates were 10 respectively.

2% / 21.

7% / 14.

At 6%, the growth rate of net profit attributable to mothers was 8 respectively.

8% / 4.

2% / 18.


Among them, Q3’s revenue has grown steadily, and the growth rate of performance has increased significantly compared with the first half of the year, mainly because Q3’s minority shareholders’ profits and losses have decreased significantly compared with the first half of the year.Value loss is reduced.

The company’s 19Q1-3 asset impairment losses and credit impairment losses totaled 6.

5.9 billion yuan, compared with the same period of 18 years (22.

7.5 billion) 16.

1.6 billion.

The company’s gross profit / net margin for the 19Q1-3 were 10 respectively.

43% / 4.

52%, which changed by -0 in the same period of the previous 18 years.

06 / + 0.

02pct, in which Q3 gross profit / net margin was increased by 0 compared to 18Q3.


04 points.

The settlement of the real estate business accelerated, and the income from the infrastructure business accelerated. According to the division of labor, the company’s 19Q1-3 housing construction / infrastructure / real estate / design business achieved revenues of 6018/2208/1450/64 budgets, respectively, while increasing by 15 respectively.

3% / 14.

3% / 22.

8% / 14.

The growth rate of infrastructure and real estate business income has improved compared to the first half of the year, and real estate business settlement has accelerated; gross profit margins were 5 respectively.

5% / 7.

9% / 32.

0% / 17.

3%, a change of -0 over the same period in the previous 18 years.

4 / -0.

5 / -0.

5 / + 0.

7 points.The company’s 19Q1-3 net operating cash flow was 106.7 billion yuan, a net repeat increase of 41.7 billion compared with the same period of the previous 18 years.

In terms of expense ratio, the company’s expense ratio during the period of 19Q1-3 was 3.

59%, an increase of 0 from the same period of the previous 18 years.

06pct, in which the sales / management / finance / research and development expense ratios change +0 respectively.

02 / -0.

04 / -0.

37 / + 0.

44 points.

As of the end of 19Q3, the company’s assets and liabilities supplemented 76.

0%, down 18 earlier.

9 points.

In the new year, the single-digit growth rate has gradually increased. In September, the order infrastructure rebounded significantly. In terms of real estate sales, construction orders continued to increase. According to the company’s operating data announcement, the value of new contracts for construction business from January to September was $ 176.8 billion, an increase of 6.


Among them, housing construction / infrastructure / design has a single migration of +17 in the new decade.

2% /-24.

8% /-1.


Among them, the amount of new contracts signed in September increased by 6 every year.

5%, housing construction / infrastructure / design changes a single multiple times in the new years -2.

8% / + 58.

2% / + 60%, infrastructure orders improved significantly.

In terms of land business, the January-September contract for the year was $ 269.9 billion, an annual increase of 30.

4%; The contracted sales area from January to September was 15.68 million square meters, an annual increase of 16.

2%; real estate sales maintained a high increase in the first nine months, and the rich land reserve helps support the company’s continued real estate business in the future.

Earnings forecasts and investment rating companies have recently picked up orders, real estate business settlement has accelerated, supporting the company’s revenue and performance growth.

The third phase of the company’s interest stock incentive plan requires a three-year compound profit growth of no less than 9.

5%, on the basis of 18 years of high base, still maintained rapid growth, showing the company’s confidence in subsequent development.

It is estimated that the company will realize net profit attributable to its mothers of RMB421 / 460/504 billion in 19-21.

Maintain the 南京夜网论坛 company 8.

The judgment of the fair value of 00 yuan per share remains unchanged, corresponding to a PE estimate of 8 times in 19 years, maintaining the “Buy” rating.

Risk reminders: Investment in fixed assets is less than expected; the shortcomings of infrastructure supplements are less than expected; the reform of state-owned enterprises is less than expected; overseas business risks.