Main points of investment
Turning losses into profits, the company made a profit of 158 million yuan in the first half of 21 years. According to the company's semi-annual report, its operating income in the first half of 2021 was 16.2 billion yuan, a decrease of 6.96 percent over the same period last year. The net profit was 158 million yuan, an increase of 227.7% over the same period last year. The gross profit margin was 7.65%, an increase of 33% over the same period last year. Operating income decreased slightly compared with the same period last year, mainly due to the uneven distribution of product construction and delivery nodes. In response to unfavorable factors such as the sharp rise in the price of major raw materials such as marine steel plates, rising labor costs and fluctuations in RMB interest rates, the company has further promoted the implementation of cost engineering and strengthened cost pre-planning and control of the whole process. continue to improve shipbuilding efficiency and on-time delivery rate, and continue to improve profitability.
The marine transport equipment plate increased by 390% over the same period last year, and the company reduced costs and increased efficiency significantly in the first half of 2021. In the first half of 2021, the company added 40.843 billion yuan in new orders, an increase of 65.07% over the same period last year. Among them, the marine transport equipment plate received 17.999 billion yuan in new orders in the first half of the year, an increase of 390.84% over the same period last year. In the first half of the year, the company completed the delivery of 3.9 million deadweight tons of ships, an increase of 8.03%. There are obvious signs of stabilization in the global marine market, with the marine defense and marine development equipment plate receiving 13.787 billion yuan of new orders, an increase of 84.5 per cent over the same period last year. In the strategic emerging industries sector, the company pays close attention to the favorable opportunity of continuous subsidies for offshore wind power, extending horizontally and vertically, accepting new orders of 2.687 billion yuan in the first half of the year, an increase of 2.6 percent over the same period last year. At present, the total amount of orders held by the company is 122.3 billion yuan, an increase of 16% over the same period last year.
During the reporting period, the net cash flow of operating activities was-2.526 billion yuan, mainly due to the company's centralized procurement of bulk materials in the first half of the year, and the relatively high expenditure on materials and equipment procurement, reflecting the company's full orders and high operating rate. Affected by the sharp rise in the prices of major raw materials such as steel, rising labor costs, RMB exchange rate fluctuations and many other unfavorable factors, the gross profit margin still increased by 33% compared with the same period last year, reflecting the obvious effect of the special action to improve quality and increase efficiency.
The shipping index continued to reach a new high, driving the explosive growth of new shipbuilding orders in the industry in the first half of 2021, the prosperity of the shipping market continued to pick up, port congestion, shortage of seafarers and other factors further aggravated the shortage of transport capacity. On August 23, the Baltic dry bulk Index (BDI) reached 4147 points, breaking the 4000 mark and an 11-year high, up 26% from the beginning of the month, 201% from the beginning of the year, and 178% from the same period last year.
China's export container freight index CCFI was 3047.32, an increase of 265 per cent from the low of 834 in 2020.
There is explosive growth in the new shipbuilding market, especially in the container ship market. According to the China Shipbuilding Industry Association, global orders for new ships totaled 74.97 million deadweight tons in the first half of 2021, an increase of 222% over the same period last year.
From the point of view of the breakdown of ship types, the order volume of container ships reached an all-time high. China's shipbuilding industry leads the world, the three major shipbuilding indicators picked up in an all-round way in the first half of the year, and the international market share remained at more than 40%. In the first half of 2021, China's new ship orders were 38.24 million deadweight tons, an increase of 206.8% over the same period last year; shipbuilding completion was 20.92 million deadweight tons, an increase of 19.0% over the same period last year; as of the end of June, hand-held ship orders were 86.6 million deadweight tons, an increase of 13.1% over the same period last year and 21.8% higher than hand-held orders at the end of 2020.
Investment advice: we expect the company's net assets per share from 2021 to 2023 to be 2.69, 2.72 and 2.77 yuan respectively. With a certain margin of safety, maintain the proposal of increasing holdings.
Risk hint: the global economy rebounded less than expected, and increased competition led to a fall in new ship prices.