Anhui Water Resources (600502) 2018 Annual Report Comments: Debt-to-equity and leverage reduction are significant

Anhui Water Resources (600502) 2018 Annual Report Comments: Debt-to-equity and leverage reduction are significant

The profit is affected by non-recurring gains and losses, and the growth rate of real estate sales is eye-catching. In 2018, the company achieved revenue of 388.

2.8 billion, an increase of 9 in ten years.

51%; realized net profit attributable to mother 8.

10 billion, an annual increase of 2.

38%, after excluding non-recurring gains and losses, the net profit growth rate reached 20.


The new construction project single 525.

USD 1.6 billion, which was affected by PPP liquidation and a high base in the same period of 2017.


Real estate sales achieved good results, and the contracted sales area reached 159.

670,000 square meters, with a contracted sales amount of 93.

3.3 billion, an annual increase of 49.

10%, 60.


Gross profit margin has improved, and cash flow has improved significantly. The company’s ROE in 2018 was 10.

36%, a decline of 2 per year.

At 09pct, the decrease in ROE was mainly due to the decrease in the company’s financial leverage and 杭州桑拿 the longer receivables collection cycle.

The gross profit margin is 10.

72%, an increase of 0 every year.

42pct. The increase in gross profit margin was mainly due to the increase in the proportion of real business with high gross profit margin; the net profit margin was 2.

11%, a decline of 0 per year.

09 points.

Period expenses5.

30%, a year to raise 0.

02pct; in which the management expense rate is increased by 0.

14 points to 3.

62%, the financial expense ratio decreased by 0.

11 points to 1.

38%, sales expense ratio increased by 0.

01pct to 0.


Total asset turnover is 0.

56 times, 36 per year.

36%, accounts receivable turnover investment2.

31 times, down 31 a year.

05%, operating capacity has improved.

Operating net cash flow -20.

6 billion, operating cash flow / operating income 都市夜网 -5.31%, an increase of 20 per year.

72 points.

Q4 performance growth accelerated The company’s 2018Q1, Q2, Q3 and Q4 completed revenue of 73 respectively.

8.3 billion, 89.

2.7 billion, 93.

8.3 billion, 131.

3.5 billion, an increase of 10 in ten years.

65%, 23.

64%, -7.

29%, 14.

78%; realized net profit1.

10 billion, 1.

80 billion, 1.

44 billion, 3.

6.7 billion, an increase of 30 in ten years.

22%, -11.

48%, -0.

46%, 4.


The company’s performance growth in the fourth quarter has significantly improved.

Debt-to-equity swaps were implemented, and leverage was steadily moving forward. The company dated investors Zhongan Assets to increase capital and implement market-oriented debt-to-equity swaps for three subsidiaries of Anhui Sanjian, Luqiao Group, and Anjian Building Materials.

Through debt-to-equity swaps, the company’s overall asset-liability ratio was 85.

83% down 1.

53pct to 84.

30%, the capital structure is improved, the financial burden is reduced, and it is beneficial to the company’s long-term sustainable development.

Profit forecast and investment advice: The company’s EPS for 19-21 is expected to be 0.



84 yuan, PE is 9 respectively.



4 times.

Maintain “Buy” rating.

Risk warning: bad debts of accounts receivable, the name of infrastructure investment, and the policy strength is less than expected.