“We hope to cultivate new business segments as soon as possible in the next 10 years, and strive to achieve about 25% of the company’s (performance) scale by the end of the 14th Five-Year Plan.” On the afternoon of June 13, in Sichuan Luqiao (SH600039, stock price 11.25 yuan, market value 54.1 billion yuan) headquarters, an executive told the “Daily Economic News” reporter.
The new business sector mentioned by the executive of Sichuan Luqiao mainly refers to the new energy and new material sector that the company is cultivating. In recent years, Sichuan Luqiao has frequently deployed in the fields of new energy and new materials, especially in the field of lithium batteries, with Sichuan Energy Power (SZ000155, stock price 22.37, market value of 33.016 billion yuan), BYD (SZ002594, stock price of 348.8 yuan, market value of 1.02 trillion yuan) ) and other enterprises have frequent cooperation.
On June 11, Sichuan Road and Bridge announced that it plans to participate in the bankruptcy reorganization of Dongjinchuan Phosphorus Chemical Co., Ltd. (hereinafter referred to as Jinchuan Company) for 1.04 billion yuan. Among them, it plans to invest 430 million yuan in cash to acquire 100% equity of Jinchuan Company through bankruptcy and reorganization. ; About 610 million yuan in resumption of work and production, mine construction, technological transformation and other infrastructure investments. A number of securities companies released research reports that the move is to lock in upstream phosphate rock resources and improve the new energy industry chain.
Source of pictures of Sichuan Road and Bridge Headquarters: Photo by reporter Zhu Wanping
Talking about the development of the main business: it is expected to continue to grow rapidly during the “14th Five-Year Plan” period
On the afternoon of June 13, Sichuan Luqiao held the fifth extraordinary general meeting of shareholders in 2022. The reporter of “Daily Economic News” saw the slogan “Sichuan Roads, Bridges and Roads” at the gate of the company headquarters.
Source of pictures of Sichuan Road and Bridge Headquarters: Photo by reporter Zhu Wanping
Such slogans are related to the main business of Sichuan Road and Bridge. As a core subsidiary of Sichuan Provincial State-owned Enterprise – Shudao Investment Group Co., Ltd. (hereinafter referred to as Shudao Group), Sichuan Road and Bridge is mainly engaged in engineering construction, especially good at the construction of transportation infrastructure. The company is also the first in the transportation system in Sichuan Province. A-share listed companies.
According to the official website of Sichuan Road and Bridge’s controlling shareholder, Shudao Group, Shudao Group was established in May 2021 and was formed by the merger of Sichuan Provincial Communications Investment Group and Sichuan Provincial Railway Industry Investment Group. As of the end of last year, Shudao Group had total assets of about 1 trillion yuan and net assets of 310.8 billion yuan, ranking second among provincial transportation enterprises in the country.
In addition to Sichuan Luqiao, there are currently several listed companies under the Shudao Group including Sichuan Chengyu (SH601107, stock price 4.27 yuan, market value 13.058 billion yuan), Shudao Equipment (SZ300540, stock price 22.41 yuan, market value 3.601 billion yuan). According to the development plan of Shudao Group, it is estimated that by 2025, the total assets will exceed 1.6 trillion yuan, and the annual operating income will exceed 300 billion yuan.
“Shudao Group, as the main force and vanguard in the construction of a strong transportation province in Sichuan Province, the company can obtain engineering orders for most of the expressways in the province.” In March this year, Sichuan Road and Bridge said in an investor survey. In this context, in recent years, the main business of Sichuan Road and Bridge has developed well.
In 2021, Sichuan Road and Bridge achieved revenue of 85.049 billion yuan, a year-on-year increase of 31.73%; net profit attributable to the parent reached 5.582 billion yuan, a year-on-year increase of 85.43%; last year’s bid amount hit a record high, as of the end of 2021, the company’s total orders in hand amounted to 1372 billion. In the first quarter of this year, Sichuan Road and Bridge’s revenue increased by 32.77% year-on-year; net profit attributable to the parent increased by 30.92% year-on-year.
“As far as the main business of engineering construction is concerned, during the ’14th Five-Year Plan’ period, the company can still maintain a relatively rapid growth.” The above-mentioned Sichuan Road and Bridge executive told the “Daily Economic News” reporter.
“Judging from the situation of Sichuan Province, the infrastructure investment in Sichuan Province’s 14th Five-Year Plan has increased by more than 60% compared with the 13th Five-Year Plan. Therefore, the company can benefit from it in order to obtain orders, and the orders in hand are relatively sufficient at present, and the operation is stable and improving.” In March this year, Sichuan Road and Bridge said in an investor survey.
Talking about new business development: strive to account for about 25% by the end of the “14th Five-Year Plan”
Although the current main business is still growing rapidly, the above-mentioned executives of Sichuan Road and Bridge said frankly that it is expected that after the “14th Five-Year Plan”, that is, the “15th Five-Year Plan” period, the infrastructure construction in various places should enter a relatively complete stage. It is expected that the growth rate of the company’s main business construction will slow down accordingly, and this requires Sichuan Road and Bridge to cultivate new growth points as soon as possible.
In recent years, Sichuan Luqiao has also accelerated the pace of transformation. During the “14th Five-Year Plan” period, the company has determined the “1+2” industrial plan, with “1” as the main business engineering construction sector, and “2” as clean energy + new mineral materials On the premise of integrating the existing subsidiaries of the company, two specialized sub-groups have been established, which will carry out professional management and develop new energy and new materials business in the future.
“The company has tried new energy and new materials before, and it has a certain foundation.” The above-mentioned Sichuan Road and Bridge executive said.
According to Sichuan Luqiao’s disclosure by investors in March this year, during the “14th Five-Year Plan” period, the company plans to develop wind power, hydropower and distributed energy in terms of clean energy. Relying on the investment advantages of the company itself and Shudao Group in transportation infrastructure in Sichuan Province, the company actively develops clean energy business; at the same time, the company plans to use the existing expressway resources to expand distributed energy, but it is still trying to do business in related fields. stage.
During the exchange, the above-mentioned executives of Sichuan Road and Bridge also revealed the overall strategic goals of the new business in the future. “(hope) to cultivate new business sectors as soon as possible in the next 10 years, and strive to achieve about 25% of the company’s overall (performance) scale by the end of the 14th Five-Year Plan.”
Source of pictures of Sichuan Road and Bridge Headquarters: Photo by reporter Zhu Wanping
It is planned to obtain 1.04 billion yuan of phosphate rock resources in Jinchuan to improve the layout of upstream industries
Compared with wind power, hydropower and distributed energy, the outside world pays more attention to the layout of Sichuan Road and Bridge in lithium battery new energy. In recent years, Sichuan Road and Bridge has frequently deployed in lithium battery new energy.
On June 10, Sichuan Luqiao announced that it planned to participate in the bankruptcy reorganization of Dongjinchuan Phosphorous Chemical Co., Ltd. (hereinafter referred to as Jinchuan Company) for 1.04 billion yuan, of which it planned to invest 430 million yuan in cash to acquire 100% equity of Jinchuan Company through bankruptcy and reorganization. ; About 610 million yuan in resumption of work and production, mine construction, technological transformation and other infrastructure investments.
According to the disclosure of Sichuan Road and Bridge, Jinchuan Company has a 60,000-ton/year yellow phosphorus plant and the mining rights of phosphorus mines in Daheishan, Dashanliangzi, Dashuigou, and Dashuigou. Among them, the core Daheishan phosphorus mine has a mining area of 1.0996 square kilometers, with a prospective resource reserve of about 104.757 million tons and a certified reserve of 21.288 million tons. The renewal of the Daheishan Mine Right Certificate was approved in April this year and is valid for 20 years.
“Yellow phosphorus is an important raw material for the production of cathode material lithium iron phosphate. With the acquisition of 100% equity of Jinchuan Company, the company has achieved breakthroughs in phosphate rock resources. On the one hand, it can enhance the company’s performance, and on the other hand, it provides raw material guarantee for the company’s vigorous development of cathode materials. ” Huaxin Securities said in a recent research report.
However, according to the announcement issued by Sichuan Road and Bridge, Jinchuan Company is currently in a state of insolvency. As of September 30, 2021, Jinchuan’s total assets were about 769 million yuan, total liabilities were 1.515 billion yuan, owner’s equity was -747 million yuan, and the asset-liability ratio was 197.17%. In addition, Sichuan Road and Bridge also pointed out multiple risks in the announcement, including the risks that rectification work such as safety and environmental protection may not be completed.
“If the Jinchuan company can be successfully won, the company will actively carry out rectification work, promote the technical transformation project and mine construction, and strive to produce output as soon as possible.” A Sichuan Road and Bridge person told the “Daily Economic News” reporter.
Despite facing multiple risks, a number of securities companies including Guosheng Securities believe that Sichuan Luqiao’s improvement of upstream phosphate rock resources will help the company accelerate its transformation into the new energy field and create a new growth engine.
In addition to improving phosphate rock resources, Sichuan Luqiao is also making up for the shortcomings of lithium mines. In May this year, Chuanneng Power intends to transfer its 5% stake in Sichuan Energy Investment Lithium Industry Co., Ltd. to Sichuan Road and Bridge at a transfer price of 149 million yuan, while Sichuan Energy Investment Lithium Industry holds high-quality lithium metal mine Lijiagou mining area.
It is worth mentioning that in November last year, Sichuan Road and Bridge also established joint ventures with Chuanneng Power and BYD to comprehensively develop phosphate rock resources and lithium iron phosphate projects in Mabian County. At present, Sichuan Road and Bridge is advancing the plan of issuing shares and paying cash to purchase assets and raise supporting funds. Among them, in terms of raising supporting funds, it is planned to introduce Sichuan Energy Investment Group and BYD as strategic investors to bind the upstream and downstream industry chains.
There are various signs that Sichuan Luqiao is rapidly improving the upstream and downstream industrial chain of new energy lithium batteries.
