Events:
Citic Haizhi released its mid-2021 report, with operating income of 756 million yuan in the first half of the year, up 9.50% from the same period last year, and net profit of 111 million yuan in the first half, an increase of 61.61% over the same period last year.
Comments:
The rise in oil prices led to an increase in revenue from the shipping business, with net interest rates at their best level in 13 years. The gross profit margin of the company's navigation business is basically flat, and the net profit margin continues to rise on the basis of the 2020 annual report, reaching 28.87% and 15.61% respectively, reaching the best level since the 2013 annual report. In the first half of the year, the company added one long-term contract machine and three typhoon contract machines in its offshore oil business, continuously consolidating its dominant position in the industry, and navigation and transportation revenue increased by 11.95% compared with the same period last year. Affected by the acquisition of 51% stake in Huaxia Kyushu Company in the first half of the year, the company's navigation maintenance business further developed, up 23.22% from the same period last year. The investment of financial leasing business has decreased, and the revenue of this business has dropped while driving the overall operating cost down by 1.25%.
Sales and management expenses increased compared with the same period last year, while financial expenses decreased significantly. From the expense point of view, the sales expenses of the company affected by the recovery of the epidemic increased by 25.36% year-on-year to 2.113 million yuan. Administrative expenses rose slightly by 6.7% to 58.159 million yuan. In the first half of the year, the company generated an exchange gain of 5.428 million yuan, compared with an exchange loss of 5.971 million yuan in the same period last year. At the same time, interest expenses fell 12% to 27.09 million yuan, and financial expenses in the first half of the year were 19.547 million yuan.
Offshore wind power business continues to develop, and there may be a faster growth rate in the future. The company renewed the Yancheng wind power project in the first half of the year, added wind power operation and maintenance contracts in Jiangsu, Guangdong and other places, and is the only supplier of offshore wind power helicopter services. at present, the installed capacity of offshore wind power is growing rapidly, and there is still room for business scale growth.
Investment strategy: the company continues to cultivate deeply in the field of navigation, and its performance, business types and fleet size are all in a leading position in the industry, and the market share of the domestic offshore oil market is maintained at about 65%, making it the first. Looking to the future, offshore oil navigation business is making steady progress, offshore wind power business continues to expand, maintenance, training and other diversified business has growth potential. To maintain the profit forecast of the company, it is estimated that the eps of the company from 2021 to 2023 will be 0.32,0.35,0.39 yuan respectively, corresponding to 24.6,22.6,20.1 times of PE on August 25, respectively.
Risk hints: fluctuations in international oil prices, lower-than-expected navigation policies, etc.