CICC releaseresearch reportsay, maintainAnhui Wantong Expressway(00995) “Outperform industry” rating, maintained for 2022/23profit predictionUnchanged, the current H share price corresponds to 2022/23 5.8x/5.5x PER, 10.3%/11% dividend yield, and the target price is HK$10.37, corresponding to 8.1x 2022 PER and 7.6x 2023 PER, 38.8 times higher than the current share price % upside.
The main views of CICC are as follows:
2021performanceslightly exceeded expectations
The company announced its 2021 results: after the company consolidated Anqing Bridge Company in 2021, the company will achieve a revenue of 4.03 billion yuan, and the retrospective adjustment caliber will increase by 33.6% year-on-year, realizing the return to the parent company.net profit1.51 billion yuan, corresponding to earnings per share of 0.91 yuan, a year-on-year increase of 73.7% in the retrospective adjustment caliber, slightly higher than the previous performance forecast center and slightly exceeding the bank’s expectations, mainly due to the newly acquired Anqing Bridge Company’s performance contribution exceeded the bank’s expectations.
If the impact of the consolidated Anqing Bridge Company is not considered, the company’s revenue in 2021 will increase by 31% year-on-year, an increase of 17.1% compared with 2019, and the net profit attributable to the parent company will increase by 51.4% year-on-year and 26.7% compared with 2019. In the fourth quarter alone, the company achieved revenue of 1.45 billion yuan in 4Q21 and net profit attributable to the parent of 420 million yuan. After deducting the impact of 4Q consolidation, revenue increased by 36.2% compared with 4Q19, and net profit attributable to the parent increased by 26.1% compared with 4Q19.
The main highway business has good growth potential, and multiple factors will drive the performance in 2022 to continue to grow rapidly.
After the completion of the reconstruction and expansion of the Anhui section of Hening Expressway, the traffic flow in 2021 will increase by 12.6% year-on-year, and the toll fee will be +41.3% year-on-year.
Ningxuanhang Expressway is expected to turn losses: In 2021, affected by the construction of adjacent national highways and the ban on yellow-card trucks, Ningxuanhang will still lose 170 million yuan. The bank believes that with the opening of the Jiangsu and Zhejiang sections of the Ningxuanhang Expressway, the traffic flow may increase. Promoting Ningxuanhang Expressway to turn losses;
Anqing Bridge Company may bring new growth:1) The operation of Anqing Yangtze River Highway Bridge is mature, and the revenue in 2021 is 340 million yuan, accounting for 72.3% of the bridge company’s revenue.interest rateAs high as 82.5%, contributing to stable profits; 2) In 2021, the traffic volume of the Anhui section of Yuewu Expressway will increase by 31.4% year-on-year, and the toll revenue will increase by 61.0% year-on-year. The economic recovery has driven a substantial growth in freight logistics or promoted the simultaneous growth of vehicle traffic, which has brought positive contributions to the company’s performance.
highDividendProportion, the defensive value is prominent.In 2021, the company’s DPS is 0.55 yuan, and the dividend ratio is 60%.announcementof”shareholderThe Return Plan will increase the dividend ratio to 60% in the next three years, which is a relatively high level among listed expressway companies.
risk warning:The epidemic has repeated, and the Zhejiang section of Ningxuanhang was opened to traffic later than expected.
(Article source: Zhitong Financial Network)