Shenzhen Expressway (600548): Confirmation of Deferred Income Tax Assets and Significant Improvement in Performance of Transferred Subsidiaries

Shenzhen Expressway (600548): Confirmation of Deferred Income Tax Assets and Significant Improvement in Performance of Transferred Subsidiaries

Investment Highlights Event: Shenzhen Expressway announced the 2019 Interim Report, and the Group achieved operating income in the first half of 201926.

99 ppm, an increase of 0 in ten years.

81%; realized net profit attributable to mother 15.

770,000 yuan, an increase of 62 in ten years.

79%; net profit after deduction to mother 14.

140,000 yuan, an increase of 79 in ten years.


Basic income is 0.

723 yuan, an annual increase of 62.


Results exceeded our expectations.

If the recognized deferred income tax assets are included in non-profit and loss (about 5.

1.1 billion), the company’s net profit in the first half of the year after deducting non-returns increased by about 13%.

Among them, the net profit attributable to mothers in the second quarter was 11 trillion, an annual increase of 94%, and after deduction (included in deferred income assets) increased by 25%.

Opinion: Due to government repurchase of the three projects, the toll is reduced by 10 per year.

48%, excluding this factor temporarily increasing 3.

95%: In the first half of 2019, the company’s toll revenue was 22.

40,000 yuan, accounting for 81% of the company’s total operating income.

67%, a decrease of 10 per year.

48%, initially for the three projects, the government repurchases early in 2019. Excluding the impact of this factor, the company’s toll revenue has increased by 3 per year.


Except for the toll revenue of Shuiguan Expressway and Yichang Expressway, the toll highways along the Yangtze River Expressway, Qinglian Expressway and Wuhuang Expressway have achieved a certain increase.

East of Jihe increased by 1 in ten years.

1%, the machine previously increased by 1.

8%, Shuiguan Expressway dropped 0 in ten years.

8%, Qinglian Expressway increased by 9 in half a year.

0%, the Yanjiang Expressway increased by 17% in ten years.

The reduction of the three project repurchase profits was basically offset by the company’s reduction in financial expenses, so there was little impact on the company’s consolidation of profits in 2019.

Guilong project delivery increased, land development income increased by 177%: in the first half of 2019, the company’s real estate development business income was 3.

09 million yuan, an increase of 179% in ten years, gross profit increased by about 0.

5.6 billion, an increase of 103% in ten years.

The main concentrated delivery project during the reporting period was the first phase of Phase II of the Interlaken Town. A total of 238 dwellings launched have been sold and paid back, and nearly 80% of the houses have been handed over.

The second phase and the second phase of the commercial supporting project are already in the sales and delivery phase; the third phase of the residential project has entered the sales and payment phase, and is expected to be completed and delivered by the end of 2020.

At the same time, the equity and debt of Guilong Fourth Company were transferred, and its main asset was 810 acres of Guilong land, and investment income 北京桑拿洗浴保健 was recognized.

670,000 yuan, increase net profit after tax1.


It is one of the reasons that affected the company’s profit during the reporting period.

In addition, Meilinguan and new projects are steadily advancing, with the company’s equity participation34.3%. It is expected that the project will be delivered to the first phase by the end of 2019 and will start to contribute to the company’s profits.

In the end, the current phase of the project gradually sold over 700 sets, with a removal rate of about 88%.

Finance costs have fallen 46 per year.

20%: The company’s financial expenses for the first half of the year were 2.

69 ppm, a reduction of 2 per year.

The US $ 300 million was ultimately due to the decline in the size of the borrowings, that is, the index generated by the three-item advance 南京桑拿网 collection projects will no longer be delivered, and the exchange losses caused by foreign currency gains will decrease.

As the company implemented exchange-locked swap transactions on US dollar bonds, after hedging gains from changes in fair value, financial expenses decreased by 48.


The company’s comprehensive financing cost is 4.

42%, a decrease of 0 compared with the same period last year.

28 units.

Recognize deferred income tax assets and increase net profit5.

US $ 100 million: In order to improve the financial status and reporting scale of the company along the river, the company completed a capital injection of US $ 4.1 billion into the company along the river. According to its future profit forecast, it can replace the previous part and the depreciation of assets such as highway assets.

100 million, correspondingly increased the group’s net profit by about 5.

1 ppm is the most important reason for the significant change in the company’s profit during the reporting period.

Changed the toll road franchise intangible asset unit stalls, increasing annualized net profit by more than 40 million yuan: starting April 1, the Jihe East Section, the Jihe West Section and the Meiguan Expressway Franchise Intangible Assets Units booth sales were changedThe relevant accounting estimates estimate that the amortization of the unit in the east part of Jihe will be 3.

49 yuan adjusted to 2.

95 yuan, the unit amortization of the West End of Jihe from 0.

78 yuan to 0.

59 yuan, the unit amortization of Meiguan Expressway from 0.

84 yuan to 0.

53 yuan.

Changes in accounting estimates reduce the company’s amortization of franchise intangible assets in the second quarter of 2019 by approximately RMB 15,588 thousand, increase the net profit attributable to shareholders of the company by approximately RMB 11.69 million, and annualized net profit is expected to increase by more than 40 million yuan.

Investment strategy: The company ‘s main highway business is growing steadily, environmental protection, and real estate business are the icing on the cake. It will change the incremental profit incentive and restraint plan re-disclosed in the early stage of the company, effectively combining shareholders, the company, and integrating personal interests, which will help ensure the future.Performance growth.

We have raised the company’s profit forecast and expect the company’s EPS to be 1 in 2019-2021.

4 yuan, 1.

06 yuan, 1.

13 yuan, corresponding to the closing price on August 23, 2019, PE is 6.

6X, 8.

7X, 8.

2X, assuming a dividend rate of 45%, the index is 6.

8%, 5.

2%, 5.


Maintain “Buy” rating.

Risk reminders: Changes in the highway industry policy, macroeconomic changes affecting vehicle traffic, and real estate sales are less than expected.