\u3000\u Guangzhou Improve Medical Instruments Co.Ltd(300030) Luxi Chemical Group Co.Ltd(000830) 0008)
The company is the first listed enterprise in China’s shipbuilding comprehensive technology, focusing on three business areas: ship and sea engineering, defense equipment and new energy. At the end of 2020, the company successfully completed the reorganization, the controlling shareholder was changed to Longhai heavy energy, the original core management, business and technical team remained stable, introduced professionals in defense, energy, finance and other fields, optimized the shareholder and governance structure, continued to maintain market channels and customer relations, and laid the foundation for the long-term sustainable development of the company.
After the crisis, the company’s performance bottomed out and is in the period of strategic recovery, gradually getting out of the dilemma. In 2020, the company achieved an operating revenue of 524 million yuan, a year-on-year decrease of 11.17%; The net profit attributable to the shareholders of the listed company was 25.56 million yuan, a year-on-year increase of 107.13%. The company predicts that the net profit attributable to shareholders of Listed Companies in 2021 will be 25.5 million yuan – 33.15 million yuan, a year-on-year increase of – 0.23% – 29.69%, deducting non net profit of 17.22 million yuan – 24.87 million yuan, an increase of 215.38% – 355.41% over the same period of last year.
The shipping market showed an upward trend, and the global shipbuilding market accelerated its recovery. After the severe impact of the epidemic, the global shipping industry soared last year, hitting the highest revenue of the whole industry in 13 years. China’s three major shipbuilding indicators have increased in an all-round way, leading the international market share, and the industrial chain and supply chain have shown full resilience. Shipbuilding and offshore engineering is the traditional core business of the company, covering the fields of scientific research, design, consulting, supervision and project contracting. It has formed an all-round and multi-level technical system, and its comprehensive strength ranks in the forefront of the country.
Benefiting from the high prosperity of the military industry, marine defense equipment has developed rapidly. The external situation is grim and complex, and China’s comprehensive national strength is constantly improving. As the main body of safeguarding national sovereignty, security and development interests, the navy is an indispensable part of national defense forces. Judging from the number of ships built and launched, the Chinese navy has entered a period of rapid development. The company has relatively complete military qualification, has listed the military defense business as the strategic focus of the five-year development plan (20212025), and actively expanded and upgraded the general auxiliary ship business to high value-added ships.
Natural gas is highly dependent on foreign countries, and the dual carbon policy promotes renewal. Global and China’s natural gas consumption is increasing year by year, and China’s natural gas, especially LNG, is highly dependent on foreign countries. At the same time, the carbon neutralization policy of the shipbuilding industry will promote the renewal of the stock market. The company has made continuous R & D investment in the technology of using natural gas for ships, accumulated rich technology and experience in natural gas transportation ships, natural gas fuel powered ships, natural gas fuel filling facilities and other areas, and has the qualification of natural gas operation in Shanghai.
Investment advice
As an old-fashioned leader in the R & D and manufacturing of private ships and marine engineering in China, the company has long attached importance to R & D and has strong technical strength. It has been deeply cultivated in the fields of ship and marine engineering, defense equipment and new energy for many years with obvious advantages. After reorganization, the company has entered a new stage of healthy development, benefiting from the high-profile outlook of the industry under the background of shipbuilding cycle recovery, naval equipment development and double carbon, It is expected to reverse the dilemma and have strong certainty in the future. It is estimated that in 2021 / 2022 / 2023, the revenue will reach 1.49/20/2.58 billion yuan, with a year-on-year increase of 185% / 34% / 29%, and the net profit attributable to the parent company will reach 32 / 198 / 271 million yuan, with a year-on-year increase of 30% / 507% / 36%, corresponding to P / B5 30/4.72/4.16。 “Buy” rating is given for the first time.
Risk tips
The risk that the recovery of the shipbuilding industry is not as expected, the risk of exchange rate fluctuation, the risk of customer default, and the risk of increased raw material prices and labor costs.
