CNPC Engineering (600339) Company Annual Report and Quarterly Report Comments: Good Demand for Overlap Policy Catalyzes Performance and Orders
Core point of view events: 南京夜网 The company recently disclosed its 2018 annual report and 2019 first quarter report, respectively, and achieved revenue of 586.
2.3 billion and 9.
35 ppm, a five-year increase of 5.
89% and 12.
57%; Net profit attributable to mothers in 20189.
5.5 billion, an annual increase of 42.
54% in the first quarter of 2019.
650,000 yuan, a turnaround from the previous period.
The annual report performance was in line with expectations, and the first quarter performance was significantly better: the company achieved a net profit of 9 in 2018.
5.5 billion, an annual increase of 42.
54%, of which net exchange gain was 6.
1.5 billion US dollars, the proportion of net exchange losses in 2017 increased by 500 million US dollars.
The gross profit margin is in line with our previous judgment.In 2018, the company executed the peak period of the contract caused by around 2016. During this period, it was affected by low investment in the market, fierce competition in engineering construction, and international oil prices.The company’s gross profit margin decreased by 1.
47 averages, dropped to 7.
49%, which is expected to become the low point in the next few years. It is expected to usher in improvement in 2019, with a quarterly gross profit margin of 9.
In 2018, the company’s main businesses such as oil and gas field surface engineering, pipeline and storage and transportation engineering, refining and chemical engineering, and environmental engineering changed their gross profit margins by +0 in 2018.
91% / ﹣ 2.
25% / ﹣ 5.
09% / ﹣ 2.
In addition, in terms of period expenses, financial expenses are subsidized -1.
37%, a decline of 2 per year.
21 single, the company’s sales expense ratio, management expense ratio and research and development expense ratio increased by 0.
The orders in the first quarter exceeded expectations and the short-term orders were good: the company signed a new contract in 2018 for 934.
6.2 billion, down by 10.
99%, considering 37 that have won bids for unsigned contracts.
7 trillion and 103 chronically ineffective.
4 trillion contracts, the unit amount for the new decade in 2018 increased by 2.
New contracts signed from January to March 2019112.
87 trillion US dollars, a significant annual increase of 59.
38%, of which 43 contracts have been won and unsigned.
4.5 billion, has reached long-term outstanding contracts 121.
82 trillion, a total of 278 newly signed contracts.
14 trillion, orders exceeded expectations in the first quarter.
The demand is favorable to supplement the policy catalysis, and the business growth space becomes larger: (1) The policy catalyzes the company’s pipeline storage and transportation business into the fast lane, and gradually expands the construction of the pipeline network. According to the Medium and Long-Term Oil and Gas Pipeline Network Planning, Energy DevelopmentThe “Five-Year Plan” and the “13th Five-Year Plan” for natural gas development show that during the “Thirteenth Five-Year Plan” period, 40,000 kilometers of natural gas trunks and supporting pipelines will be built, which will reach 10 in 2020.
40,000 kilometers, reaching 16 in 2025.
30,000 kilometers, the investment space is broad, it is expected that the national pipeline network company is expected to be established within the year, the company, as the leader of oil and gas pipeline network construction, is expected to benefit from the growing pipeline network investment.
(2) Increase in capital expenditure plans to promote the company’s oil and gas surface engineering business development.
Increasing oil and gas exploration and development has been promoted as a national strategy for national energy security. Gradually stabilizing oil and gas growth has become an important indicator. Oil and gas capital expansion has begun to pick up. In 2019, PetroChina, Sinopec and CNOOC’s capital expenditure plans are expected to increase respectively.
51% and 19.
81%, the company’s oil and gas surface engineering business revenue is expected to pick up.
(3) The downstream refining and chemical engineering remains high, and the company’s refining and chemical business is expected to grow.
According to predictions from authoritative institutions such as Infield and HIS, the global compound refining and chemical engineering market will grow at an average compound annual growth rate of 5%, and China will gradually become a key market for petrochemical products. After phasing out small capacity in the past few years, we will gradually welcome a large number of products in 2019.The peak period of the new production capacity of refining and chemical projects.
In terms of refining and chemical engineering, the company has the independent intellectual property rights of a set of core technologies of 1,000-ton refining and one million tons of ethylene. The refining engineering technology has reached the domestic advanced level. With the promotion of downstream recovery, the company’s refining and chemical business is expected to usher in the release of performance.
Investment suggestion: The company’s industry is expected to usher in a boom period, and the natural gas business will obviously make up for the shortcomings. The company is expected to weather the distortion caused by low-cost contracts in 2016, and gradually transition to usher in performance conversion. In 2019, we will not consider exchange rate fluctuations for the time being.According to our model assumptions, the company’s operating income for 2019-2021 is estimated to be 659 trillion, 74.1 billion, and 809 trillion; the net profit attributable to mothers is 12 respectively.
5.9 billion, 14.
3.8 billion, 16.
70 ppm, corresponding 北京桑拿体验网 PE is 19 times, 17 times, 14 times. The company’s industry is strong, PB is at a historically low level, and the asset quality is excellent. The company was successfully selected into the MSCI index. The industry is expected to usher in a boom period. We continue to give the company a rating of “strongrecommend”.
Risk reminders: Oil prices continue to rise at a low level and are at a low level; engineering materials prices have the largest changes; risks of overseas business development being less than expected; risks of foreign political situations and economic turmoil; industry competition is deteriorating; risks from increased investment income, etc.