[Yindun Jianlian] How are the construction enterprises doing from January to August 2022?


The current credit spread is 140.71 bp, an increase of 10.70 bp over the beginning of the year.

and Anhui Hua’an Foreign Economic Construction (Group) Co., Ltd., with the scale of RMB 2.50 billion and RMB 1.0 billion respectively.

From the perspective of issuance interest rate, the weighted issuance interest rate of non perpetual bonds of central enterprise bonds shows a downward trend as a whole, while the weighted issuance interest rate of state-owned enterprises fluctuates relatively large.

Among them, Sinochem Geotechnical, Fuzhou Construction Engineering, China Coal Geology, Yankuang Donghua, Palm Garden and Chongqing Zhongke declined by more than 40%.

Is there any change in the qualification of construction enterprises under the current situation of real estate downturn? This paper combs the qualification changes of current construction enterprises with existing bonds for investors’ reference.

The number of private construction enterprises that still have surviving bonds is small, and the scale of surviving bonds is also small.

From the perspective of maturity, from January to August 2022, excluding 63.320 billion yuan of perpetual bonds, the issuance of bonds within one year, 1-3 years and 5 years will be 189.67 billion yuan, 31.84 billion yuan and 6.84 billion yuan respectively.

Profitability In the first half of 2022, the industry’s average operating income was 71.505 billion yuan, with a year-on-year growth of 10.59% and a year-on-year decrease of 21.86 percentage points.

The industry is highly competitive and the characteristics of capital advance are outstanding.

First level issuance From January to August 2022, the issuance amount of construction enterprises was 291.670 billion yuan, a year-on-year increase of 28.29%, the repayment amount was 192.168 billion yuan, a year-on-year increase of 4.33%, and the net financing was 99.502 billion yuan, a year-on-year increase of 56.349 billion yuan.

The larger surviving bonds are mainly concentrated in China Urban Construction Holding Group Co., Ltd.

Since 2022, the credit spreads of AAA and AA+construction enterprises have generally shown a downward trend.

Among the 92 enterprises, there are 60 central enterprises, 26 local state-owned enterprises, 5 private enterprises and 1 wholly foreign-owned enterprise.

Its central enterprises, state-owned enterprises and private enterprises issued 206.26 billion yuan, 85.060 billion yuan and 350 million yuan, up 13.99%, 117.10% and 83.72% year on year respectively; The net financing of central enterprises, state-owned enterprises and private enterprises was 72.590 billion yuan, 32.612 billion yuan and -5.70 billion yuan respectively, with a year-on-year growth of 69.11% for central enterprises, 29.414 billion yuan for state-owned enterprises, and 13.09% for private enterprises.

Doka Frami Clamp

Among the 27 local state-owned construction enterprises, the enterprises with large surviving debts include Beijing Construction Engineering (14 billion yuan), Shaanxi Construction Engineering (13.44 billion yuan), Beijing Urban Construction (10.5 billion yuan), Shanghai Construction Engineering (7.5 billion yuan), Shenzhen Tianjian (7.2 billion yuan), etc.

Both enterprises have defaulted.

We take these 92 enterprises as samples to analyze the profitability, capital turnover and occupation pressure, cash flow, capital structure and solvency of construction enterprises in the first half of 2022.

The balance of existing bonds is 535.590 billion yuan, 96.280 billion yuan, 7.180 billion yuan and 9.562 billion yuan, accounting for 82.57%, 14.84%, 1.11% and 1.47% respectively, It is the main supplier of credit bonds in the construction industry.

The scale of the existing bonds of the eight central enterprises and their subsidiaries totaled 506.09 billion yuan, accounting for 78.03% of the existing bonds of the construction industry and 94.49% of the existing bonds of the construction enterprises of central enterprises.

At present, there are 8 private enterprises, 3 of which have the latest external rating of C and 1 of which has the external rating of BB+.

Among them, 64 enterprises achieved positive growth in operating revenue, all of which are central or local state-owned enterprises.

Private construction enterprises are relatively facing greater pressure of liquidity tension.


How are the construction enterprises doing? Among the 98 enterprises with existing debts, 93 disclosed their annual reports in 2021 and 92 disclosed their mid-term reports in 2022.

As a midstream industry, construction enterprises are closely related to the downstream real estate market and infrastructure investment in terms of revenue scale, sustainability and payment collection.

Eight central enterprises of construction enterprises include CSCEC (China State Construction Corporation), China Railway Construction (China Railway Construction Corporation), China Railway (China Railway Construction Corporation), China Communications Construction (China Communications Construction Corporation), China National Chemical Corporation (China Chemical Engineering Corporation), China Power Construction (China Power Construction Corporation) China Energy Engineering Corporation (China Energy Engineering Corporation) and China Metallurgical Corporation (China Metallurgical Science and Engineering Corporation).

In terms of subject rating, there are 44 AAA, 32 AA+, 15 AA and 1 BB+enterprises respectively.

The gross profit margin of Yankuang Donghua and Chongqing Zhongke declined significantly, by more than 10 percentage points..

The average gross profit margin of the industry was 8.99%, a year-on-year decrease of 0.93 percentage points.

As of September 20, the credit spreads of AAA and AA+enterprises were 31.18bp and 74.58bp, respectively, down 22.16bp and 42.71bp from the beginning of the year; The credit spread of AA enterprises fluctuates greatly.

Issuance and transaction of construction enterprise bonds 1.

Among the 28 enterprises with declining operating revenue, 13 are central enterprises, 9 are local state-owned enterprises, 5 are private enterprises and 1 is wholly foreign-owned enterprise.

The total size of existing bonds is 648.612 billion yuan.

There are 62, 27, 8 and 1 central enterprises, state-owned enterprises, private enterprises and wholly foreign-owned enterprises respectively.

What are the current construction enterprises with surviving debts? As of September 6, 2022, there are 98 construction enterprises with existing bonds.


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