\u3000\u3000 Cssc Offshore & Marine Engineering (Group) Company Limited(600685) (600685)
Events
The company released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will reach 70 million to 90 million yuan in 2021, and the net profit attributable to the parent company after deduction is expected to be – 65 million to – 45 million yuan.
Brief comment
The disposal of equity resulted in a significant reduction in the net profit attributable to the parent company and an improvement in the actual profitability
On January 25, the company released the performance forecast for 2021. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 70 million yuan to 90 million yuan, a year-on-year decrease of 97% – 98%, mainly due to non recurring profits and losses in the same period of last year, with an impact amount of 3.712 billion yuan. After deducting the impact of non recurring profit and loss, the net profit deducted from non attributable parent is expected to be – 65 million yuan to – 45 million yuan, with a year-on-year increase of 220 million yuan to 240 million yuan. In 2021, the global new shipbuilding market recovered and the company’s operating orders increased significantly. Therefore, the net profit attributable to the shareholders of listed companies after deducting non recurring profits and losses increased year-on-year.
Shipbuilding business has obvious advantages, signing major contracts and promising future prospects
The company’s main businesses include ship construction, marine engineering, steel structure, ship repair, mechanical and electrical products, etc. the company has the regional general assembly shipbuilding mode and the ability to build multiple ship types at the same time. The construction technical indicators of military ships, civilian ships, marine engineering and other businesses have reached the leading level in China, forming a marine police equipment, official equipment, branch line container ships Dredging dredgers and other products with Chinese and foreign characteristics. In the first half of 2021, the group achieved operating orders of 5.721 billion yuan, a year-on-year increase of 157.82%, and operating revenue of 4.718 billion yuan, a year-on-year increase of 9.88%, mainly due to the overall improvement of production efficiency and production output.
In October 2021, the company announced that its subsidiary Huangpu Wenchong signed a particularly significant contract with an amount of about US $1 billion. The contract includes the construction of 24 container ships, with a performance period of five years from September 2021 to August 2026. The side reaction is that the shipbuilding industry may enter a recovery period. As a global leading enterprise in military ships, civilian ships and marine industry, the company has obvious technology, brand and market advantages and rich product series, which can better meet the needs of customers, and is expected to benefit more in the recovery period of the industry in the future.
Profit forecast: the shipbuilding business is developing steadily and the profit is improving. There may be a turnaround in the future
The company’s business scope covers military ships, civilian ships, marine engineering and other fields. The actual profitability has improved in 2021. With the continuous promotion of the internal integration of China shipbuilding group, the industry will usher in an inflection point in the future, and the company may have a turnaround. With the change of supply and demand in the industry, it is expected that the company’s revenue will remain stable and its profitability will continue to improve in the future. It is expected that the company’s revenue from 2021 to 2023 will be RMB 11.830 billion, 11.992 billion and 12.265 billion respectively, and the net profit attributable to the parent company will be RMB 82 million, 151 million and 220 million respectively, with a year-on-year increase of – 97.76%, 84.15% and 45.70% respectively, corresponding to the current share price P / E of 334.4, 181.6 and 124.6 times respectively.
Risk: the expansion of civil market is less than expected; The price of raw materials has risen sharply; The delivery of military products was less than expected.
