There are several engineering bureaus in China Architecture, which have a wide range of business, and several of them have three special qualifications. China's construction business is mainly divided into three parts, namely, housing construction business, infrastructure business and real estate development business. In the field of housing construction, China Architecture is the absolute leader. In the highly competitive construction industry, the market share is 10%. In terms of super-high-rise buildings and airport construction, China architecture basically has no rivals. China's construction real estate business is mainly composed of three major developers: China Shipping Real Estate, China Shipping Hongyang and China Construction Real Estate. Develop office buildings, hotels, apartments and commercial real estate through differentiated positioning. Although the real estate business is not comparable to the first-line real estate developers such as Wanke, it also belongs to the first echelon position of the real estate industry.
Second, the analysis of financial indicators
Because the annual report has not yet come out, let's take the third quarterly report of 20 19 as an example for the time being. The construction industry is a highly leveraged and heavily indebted industry. The main analysis indicators are the newly signed contract amount, gross profit margin and net interest rate, interest-bearing debt ratio, new land reserve, cash flow, etc. Let's make a simple analysis.
According to public data, in February of 20 19 and February of1-0/9, the amount of newly signed contracts for construction in China was 2,864 billion yuan, up 9% year-on-year, and the contracted sales of real estate business was 3,800/kloc-0.8 billion yuan, up 27.9% year-on-year. Land reserve at the end of the period is 1 108. According to the above data, we can see that all main businesses have achieved growth in 20 19. The gross profit margin of the company is 10.43%, and the gross profit margin of the construction industry is mainly affected by the price of building materials. After a series of measures such as environmental protection, limited production and supply-side reform, building materials prices tend to be stable, future infrastructure investment increases, new infrastructure contracts grow steadily, and gross profit has room for further improvement. The net interest rate is 4.52%, ranking first among the construction industry stocks with a market value of 1000 billion, which shows the company's competitiveness and profitability in the industry. The debt ratio is 76%, of which the interest-bearing debt ratio is 50%. China Construction has been strictly controlling the scale of new interest-bearing liabilities. The negative operating cash flow is due to the company's cash outflow, mainly accounts payable, which makes China Construction mainly go to operating liabilities in the process of deleveraging, but the interest-bearing debt ratio has not been reduced too much. The huge revenue scale of China Architecture makes the construction business of China Architecture more similar to the consumer industry, rather than the traditional construction enterprise you think. These construction projects continue to produce and sell like production lines, and average collection period stays at the level of a consumer manufacturing enterprise. China's construction income will be in a state of steady growth, and the return on net assets will remain above 65,438+05% for eight consecutive years.
China construction income index
Third, valuation.
The P/B ratio is 0.9 1, the percentile is 9.43%, and the P/E ratio is 5.53, namely 12.4 1%. For the construction industry, I tend to estimate the price-to-book ratio. We continue to use Liu Zhe's simple formula to calculate the price-to-book ratio of buildings in China, and the price-to-book ratio is = (1. Here it needs to be converted into opening ROE, and the conversion formula is closing ROE/( 1- closing ROE). The annual average return on equity is 15%, and the discount rate is 1 1%. Because it is a highly leveraged industry, there are certain risks, so we raise the value to 1%, and conservatively estimate the annual net profit growth rate to 5. (Valuation is a matter of opinion. The above calculation can only show that there is a lot of space. )
Some people here may question that there is no forecast for the future in your valuation. China Construction is a confident company, and its monthly operating data are published. We can know the general operation of the company according to the monthly operation announcement. The company has released the business announcement of June 5438+0-February, 2020. Affected by the epidemic, newly signed contracts decreased by 15%, and newly started and completed areas decreased by 40% and 47% respectively. However, we should also see that under such a serious epidemic situation, the newly signed contracts for infrastructure projects increased by 7.5% year-on-year. You know, 20 19 decreased by 6544 in total. The epidemic situation has now slowed down, and the national project operating rate has reached 58. 15%. (This is the data of March 10. We didn't find the latter, but it was high and low. ) China's construction industry will also return to the right track.
China Architecture is undoubtedly the best manufacturing company in China. In 20 19, China Construction achieved a total of 286.4 billion yuan in new contracts, an increase of 9% over the same period in 20 18.
In addition, in terms of market share and brand value, China Architecture ranks first in China's manufacturing industry.
23rd in the world top 500 and 3rd in the China top 500.
Its subsidiaries:
Tianjin 1 17 Floor-1 17 Floor, 597m.
Shenzhen Ping An Financial Center-1 18 Floor, 592.5m.
CCTV new building -52 floors, 234 meters.
Beijing China Statue-108 floor, 528m.
Shanghai World Financial Center-10 1 Floor, 492m.
These typical high-rise buildings in China were built by China Architecture and its subsidiaries. In addition, many high-rise buildings abroad are built in China.
Kuala Lumpur landmark tower, Malaysia
Algeria Grand Mosque
Phase I of hasta Project in Kenya
Miami 1000 Museum Top Luxury Apartment 1000 Museum, USA
In my opinion, the best manufacturing enterprise in China is China Construction, but none of them.