SRBC(600039) 长江证券·2025-01-16 02:07Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Insights - The company, Sichuan Road and Bridge (600039.SH), is a leading engineering platform under Shudao Group, benefiting from the sustained infrastructure boom in Sichuan province. The company primarily engages in the design, investment, construction, and operation of transportation infrastructure, with nearly 90% of its business located within Sichuan [2][4]. - Sichuan's strategic positioning as a key development area, coupled with high levels of infrastructure investment, supports the company's growth prospects. The "14th Five-Year Plan" and recent public works projects indicate a resilient demand for infrastructure in the province [5][39]. - The company has shown significant performance improvements over the past decade, with a notable increase in market value. In 2023, the company's gross margin was 18%, and net margin was 7.8%, outperforming industry averages [4][32]. Summary by Sections Company Overview - Sichuan Road and Bridge, established from military and governmental engineering teams, has evolved into a major player in transportation infrastructure, with over 90% of its revenue derived from engineering services. The company has seen its revenue grow significantly over the past decade, with a 2023 revenue of 115 billion yuan [4][22][25]. Infrastructure Demand in Sichuan - Sichuan's infrastructure investment is robust, with a 2023 completion of 268.5 billion yuan in public works, ranking first nationally. The province's infrastructure investment accounts for 48% of its total investment, surpassing the national average of 37% [5][39][53]. - The province plans to invest over 1 trillion yuan in public works during the "14th Five-Year Plan" period, with ongoing projects expected to support long-term demand [5][63]. Shudao Group's Role - As the controlling shareholder, Shudao Group plays a crucial role in the company's operations, participating in most public works investments in Sichuan. The integrated investment and construction model adopted by the company enhances project acquisition efficiency and profitability [6][19]. New Business Development - The company is expanding into mining and clean energy sectors, with recent investments from Shudao Group expected to alleviate financial pressures and enhance profitability in these areas. Forecasted earnings for 2024-2026 are 8 billion, 8.74 billion, and 9.61 billion yuan, respectively [7][63]. Financial Performance - The company has demonstrated strong financial performance, with a tenfold increase in net profit from 2014 to 2022. Despite a decline in 2023 due to project delays, the overall market capitalization has continued to grow in line with profit trends [25][26]. - The company's cash flow has improved significantly since the establishment of Shudao Group, with a notable cash inflow of 13.39 billion yuan in 2022 [34].