Construction engineering sector: China State Construction Engineering, China Communications Construction, China Railway, China Railway Construction Corporation analysis

2022-06-22 0 By

At constant prices, the country’s GDP will grow 8.1 percent year-on-year in 2021, with an average growth rate of 5.1 percent over the two years.In terms of quarters, it grew 18.3 percent in the first quarter, 7.9 percent in the second, 4.9 percent in the third and 4.0 percent in the fourth.As the growth rate slows down quarter by quarter and new infrastructure is not enough to carry the banner of economic growth, China’s policies should be kept steady. Traditional infrastructure investment will become the driving force for economic growth, and 2022 will be a great year for infrastructure construction.In the first three quarters of 2021, the top four construction engineering companies with profits of more than 15 billion yuan or so have good fundamentals, low price-to-book ratio and strong ability to take orders. They are expected to welcome relatively good investment opportunities in 2022. However, they should do a good job in position control.1. Concepts such as China Construction Construction engineering + reform of central enterprises + digital twin + prefabricated construction + broken net assets + industry leader +QFII heavy position + low price-to-book ratio from 2016 to 2020, the return on net assets was 15.87%, 15.82%, 15.97%, 15.6% and 15.54%, respectively.In the first three quarters of 2021, 11.89% showed good growth.In the first three quarters, the main business income was 1.337 trillion yuan, up 24.25% year on year. In the first three quarters, the net profit was 37.83 billion yuan, up 21.5% year on year, indicating a large total net profit.The rapid growth of both revenue and net profit of more than 20% is faster than the so-called growth small-cap stocks.The asset-liability ratio of the company is 73.97%. As long as the growth rate and total net profit are large, high debt can increase the value of the company, and if the growth rate decreases, high debt is a burden.The company is a leader in the Chinese construction engineering industry, and the return on equity and net profit are still expected to grow rapidly in 2022.Net assets of the company are 7.6 yuan per share, capital reserve fund is 0.26 yuan per share, and undistributed profit is 6.21 yuan per share. The current price is 5.2 yuan.The company rose from the recent low of 4.52 yuan to 5.52 yuan, up 22.12%, the current price of 5.2 yuan, below the 20-day average, the future market is expected to get greater support around 5 yuan, 4.8 yuan, 4.6 yuan, short-term experienced people can once again break through and stand above 5.52 yuan, appropriate position participation.After the breakthrough, the first pressure level is 6.25 yuan and the second pressure level is 7 yuan.It is possible to break the record high of 7.8 yuan this year.2. CCCC construction + wind energy + railway infrastructure + water conservancy + Chinese head + broken net assets The return on net assets from 2016 to 2020 is 11.73%, 12.95%, 11.18%, 10.07%, 7.12% respectively, and 6.42% in the first three quarters of 2021, with the growth almost decreasing year by year.It fell below 10% for two consecutive years.Growth is obviously not as good as Chinese construction.The company’s net profit in the first three quarters of 2021 is 14.965 billion yuan, with a year-on-year increase of 48.58%, and the total net profit is large.The revenue of the first three quarters was 516.217 billion yuan, up 25.99% year-on-year.Double growth, and fast growth.The asset-liability ratio of the company is 74.64%, which is not a big problem, but the effect of high debt on the company is not as good as that of China Construction Engineering.Net assets of the company are 13.76 yuan per share, capital reserve fund is 1.91 yuan per share, and undistributed profit is 9.18 yuan per share. The current price is 9.03 yuan.The recent low price of 6.95 yuan, the current price of 9.03 yuan, up 29.93%, but the current price has fallen below the 20-day average, the market in 8.5 yuan, 8 yuan near the greater support, short-term experience can be in a firm 10 yuan above the appropriate participation.After the breakthrough, the first pressure level was 11.25 yuan and the second pressure level was 12.57 yuan.3. The roe of China Railway Construction engineering + lithium battery + central enterprise reform + Securities finance Huijin + railway infrastructure + Cobalt + broken NET assets + low price/book ratio from 2016 to 2020 will be 9.57%, 11.25%, 10.81%, 12.84%, 11.85% respectively, and 8.22% in the first three quarters of 2021, showing good growth.Stronger than China construction, but worse than China construction.The company’s net profit in the first three quarters of 2021 is 20.647 billion yuan, with a year-on-year increase of 13.07%, and the total net profit is large.The revenue of the first three quarters was 770.218 billion yuan, up 11.83% year on year.Double growth, and good growth.The asset-liability ratio of the company is 74.37%, which is high but not a big problem. The company has good growth.Net assets of the company are 9.04 yuan per share, capital reserve fund is 2.25 yuan per share, and undistributed profit is 5.26 yuan per share. The current price is 6.22 yuan.The company recently rose from a low of 5.1 yuan to a high of 6.62 yuan, up 29.8%, the current price of 6.22 yuan, below the 15-day average, the market can break through and stand above 6.6 yuan, short-term experience can be appropriate to participate in.After the breakthrough, the first pressure level is 7.05 yuan and the second pressure level is 8.25 yuan 4.China Railway Construction Construction + reform of central enterprises + Securities finance Huijin + railway infrastructure + prefabricated construction + broken net assets + low price-to-book ratio, the return on net assets from 2016 to 2020 were 11.55%, 12.16%, 12%, 12.03% and 11.45% respectively, and 8.09% in the first three quarters of 2021, showing good growth.In the first three quarters of 2021, the main business income is 735.475 billion yuan, up 17.86% year on year. The net profit in the first three quarters is 17.872 billion yuan, up 20.12% year on year. The total net profit is large and double.The company’s asset-liability ratio of 75.55%, high but not a big problem, the company’s growth is good.Net assets of the company are 14.68 yuan per share, capital reserve fund is 3.31 yuan per share, and undistributed profit is 10.02 yuan per share. The current price is 8.06 yuan.Recently, the company rose from the low of 7.15 yuan to the high of 8.6 yuan, up 20.28%, the current price of 8.06 yuan, below the 20-day average, is expected to get great support around 7.6 yuan, the market can break through and stand above 8.6 yuan, short-term experienced people can participate in appropriately.After the breakthrough of the reference of the first pressure 9.88 yuan, the second pressure 11.57 yuan (article views, for reference only, at your own risk, if the content is beneficial to you, like is the best support)