\u3000\u3 Shengda Resources Co.Ltd(000603) 727 Bomesc Offshore Engineering Company Limited(603727) )
Key points
Event: the company released its annual report for 2021. In the past 21 years, the company achieved an operating revenue of 4.1 billion yuan, a year-on-year increase of 58%, and a net profit attributable to the parent company of 166 million yuan, a year-on-year increase of 26%. In Q4, the company achieved a revenue of 1.16 billion yuan in a single quarter, an increase of 24.7% year-on-year and 25.3% month on month; The net profit attributable to the parent company was - 19 million yuan.
Comments:
The company's high-quality orders and workload increased steadily, helping the business scale to a new level: the international oil price was at a high level in 2021, and the prosperity of the oil service industry continued to pick up. The revenue of natural gas liquefaction and offshore oil and gas development modules of the company has increased, with a total revenue of 4.1 billion yuan in 21 years, a new high since the establishment of the company. High oil prices expand the profit space of FPSO development projects. In 21 years, the company's revenue of offshore oil and gas development module reached 1.76 billion yuan, with a year-on-year + 133%, and a gross profit margin of - 3.4%, with a year-on-year + 9pcts; The company has participated in a series of LNG module projects. In 21 years, the revenue of natural gas liquefaction module reached 2.3 billion yuan, with a year-on-year increase of + 64%, and the gross profit margin was 21.8%, with a year-on-year increase of -6.7pcts, which is mainly due to the challenge of the global epidemic and the corresponding increase of the cost of natural gas liquefaction module (project material subcontracting cost) contracted by the company with the increase of orders and delivery workload. The company continues to expand its business scope and gradually realize the EPCI service mode, which has a good long-term development prospect.
The company continues to obtain high-quality orders and has sufficient growth momentum: Bomesc Offshore Engineering Company Limited(603727) obtained gygazsnc17 in June 2021 Additional contract for module construction of offshore LNG plant of RMB 3.2 billion. This is the second additional order of the two parties to the contract after the additional contract of RMB 520 million in November 2019, which reflects the continuous improvement of the company's industry reputation and the continuous expansion of overseas markets, and will further enhance the company's performance in the field of natural gas liquefaction in the next two years. In 2020, the company successively signed mero2, MV32 and other large-scale FPSO project contracts with SBM and modec by virtue of its project module design and construction experience in the field of offshore oil and gas and its long-term cooperative relationship with overseas customers. With the centralized release of high-quality orders, the company's performance is expected to increase.
Explore new energy business and break into the offshore wind power market: China's installed capacity of offshore wind power will reach 11gw in 2021. With rich experience in oil and gas engineering and LNG plant modules, the company strives to break into the offshore wind power market and participate in the bidding of some projects. In 2021, the subsidiary Tianjin Bomesc Offshore Engineering Company Limited(603727) asset management and the company's actual controller Peng Wencheng invested to establish Tianjin Bomesc Offshore Engineering Company Limited(603727) new energy partnership. In addition, the company actively participated in the bidding of lithium battery projects and successfully locked the contract of lithium battery recycling skid project in March 2022. Based on its existing advantages, the company will improve the layout of the industrial chain and grasp the growth opportunities under the background of "carbon neutrality".
Profit forecast, valuation and rating: considering that the conflict between Russia and Ukraine is still going on, Europe and the United States impose energy sanctions on Russia, and the company carries out cooperation projects with Russia, including Arctic II LNG project, or faces the uncertainty caused by geopolitical factors, to be conservative, we reduce the company's profit forecast for 20222023 and add the profit forecast for 2024, It is estimated that the net profit of the company from 2022 to 2024 will be 183 (down 48%) / 204 (down 50%) / 229 million yuan respectively, and the corresponding EPS will be 0.64/0.71/0.79 yuan respectively.
Risk warning: industry cyclical risk, project progress less than expected risk, contract performance risk, exchange gain and loss risk.
