China National Heavy Industry Corporation (601989): Improve the quality of development and improve performance is expected to usher in an inflection point
Event: The company released its semi-annual report for 2019.
The report initially achieved operating income of 168.
8.6 billion, down 13 each year.
91%; net profit attributable to mother is 11.
49 ppm, an increase of 20 per year.
Proactively adjust business strategies, and operating income improves every year.
Facing the unfavorable situation in the international shipping market, the company adheres to the bottom line of “not accepting margin orders with less than zero or negative cash flow” to prevent and control risks from the source of orders.
Reports first-class company operating income of 168.
86 ppm, 北京桑拿体验网 a decrease of 13 per year.
91%, by product: 1) Revenue from marine defense and marine development equipment 75.
44 ppm, an increase of 21 in ten years.
65%, accounting for 44 of total revenue.
68%, mainly due to the increase in the income of temporarily confirmed products in the report; 2) Marine transportation equipment, deep-sea equipment and ship repair and modification, strategic emerging industries and other business income were 28.
5.0 billion, down 43 each year.
88% / 73.
95% / 4.
44%, due to the decrease in products reporting active recognition of revenue, and the other was due to the company’s active adjustment and optimization of business strategies.
The thorough governance work has been effective and the profitability has been effectively improved.
The company vigorously promoted the rigorous treatment of the premises and made up for corporate governance. In the second half of 2018, the company completed Shanzhuang Heavy Industry, the sale of the subsidiary of Qingdao Wuchuan Subsidiary, and the subsidiary Dachuan Offshore entered into the reorganization process, which effectively reduced the substitution of listed companiessource.
The company closely focused on its core business, strengthened the control of cost and expense, and the expense ratio during the period decreased by 0 compared with the same period of the previous year.
Benefiting from the improvement in the disposal of inefficient assets and the improvement in the quality of development, a series of companies are reported to realize net profit attributable to their mothers.
4.9 billion (+20.
24%), sales gross margin increased by 1 over the same period last year.
69pct to 11.
54%, the gross profit margin of the products of the main business plan all achieved different degrees of improvement.
Asset integration to improve asset quality will benefit from the rapid development of the naval equipment market.
The merger of North and South Ships kicked off the integration and reorganization of the shipbuilding industry.
35% equity, Wuhan Shipbuilding 15.
99% equity participation in China Power’s asset reorganization will help the company focus on the responsibility of the main owner and revitalize the existing assets.
The company is the main supplier of naval equipment. It undertakes the R & D and production of too many major military equipment. The naval vessel equipment will still be at the peak of construction. The company’s future performance will benefit from the rapid development of the naval equipment market.
Profit forecast and investment advice: It is estimated that the revenue for 2019-2021 will be 450.
8.9 billion, net profit attributable to mother is 15.38/16.
82 trillion, EPS is 0.
08 yuan, the current expected corresponding PE is 89/84/77 times, the first coverage, given an “overweight rating.”
Risk warning: Civil ship recovery is less than expected; military products are not listed as fast as expected.