How about Chengdu roads and bridges?
Recently, Chengdu Road and Bridge (stock code: 002628), as a listed company mainly engaged in the construction of infrastructure such as roads, bridges, and tunnels, has attracted much attention from investors. The following will analyze the current situation of Chengdu Road and Bridge from multiple dimensions such as company fundamentals, market performance, industry dynamics and recent hot spots.
1. Company fundamental analysis
Chengdu Road and Bridge was established in 1999 and is a well-known infrastructure company in Sichuan Province. Its business covers transportation engineering, municipal engineering and other fields. The following are its key financial data for the past three years:
| indicator | 2021 | 2022 | 2023 (Interim Report) |
|---|---|---|---|
| Operating income (100 million yuan) | 32.15 | 28.76 | 12.43 |
| Net profit (100 million yuan) | 0.98 | 0.62 | 0.25 |
| Asset-liability ratio | 68.2% | 70.5% | 71.3% |
It can be seen from the data that the company's revenue and net profit are on a downward trend, and the asset-liability ratio is relatively high, so we need to pay attention to its debt risk.
2. Market performance and stock price analysis
As of the last 10 trading days (October 2023), the stock price performance of Chengdu Luqiao is as follows:
| Date | Closing price (yuan) | Increase or decrease | Trading volume (10,000 lots) |
|---|---|---|---|
| October 1 | 5.12 | +1.19% | 3.45 |
| October 10 | 4.98 | -2.73% | 4.21 |
The stock price has fluctuated greatly in the past 10 days, affected by the policy expectations of the infrastructure sector, but the overall trend is weak.
3. Industry hot spots and policy impacts
1.Increased investment in infrastructure: Recently, the State Council has proposed “appropriately advanced infrastructure investment,” and the acceleration of the construction of the twin-city economic circle in Chengdu and Chongqing, Sichuan, may bring additional orders to the company.
2.PPP project restarted: Many local governments have restarted the PPP model. Chengdu Road and Bridge has participated in many PPP projects, and attention needs to be paid to whether its capital chain can support it.
3.competitive landscape: Competition in the Sichuan region with China Railway, Sichuan Road and Bridge and other enterprises is fierce, and the market share is under pressure.
4. Investors’ focus
1.Order status: The value of newly signed contracts in the first half of 2023 was 870 million yuan, a year-on-year decrease of 15%.
2.Changes in shareholders: There have been no recent announcements about increases or decreases in holdings by major shareholders, and the shareholding ratios of the top ten shareholders are relatively stable.
3.Risk warning: The turnover rate of accounts receivable is lower than the industry average, and there is pressure to collect payment.
5. Summary and suggestions
Chengdu Road and Bridge is currently facing dual pressures of declining performance and industry competition, but benefiting from infrastructure policy dividends, there may be opportunities for valuation restoration in the medium to long term. Investors need to pay close attention to its order acquisition capabilities and financial health, and are advised to make prudent decisions based on industry policy dynamics.
(Note: The above data is as of October 10, 2023. Specific investments are subject to the latest announcement.)
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