Main points of investment
Revenue in the first three quarters of 2019 is + 5.07% year on year, deducting non-return net profit from the same period last year + 49.55%: the company released its three-quarter report in 2019, the company achieved operating income of 15.538 billion yuan in the first three quarters of 2019, year-on-year + 5.07%, return to mother net profit 243 million yuan, year-on-year + 24.78%, deducted non-return net profit 184 million yuan, year-on-year + 49.55%, of which 19Q3 single-quarter operating income 5.352 billion yuan Year-on-year + 13.44%, return to the mother net profit of 21 million yuan, year-on-year-36.58%, deducting non-return net profit of 146 million yuan, + 9967.78%. Among them, the sharp increase in deduction in the third quarter is mainly due to the profit and loss of fair value changes and investment income loss of 174 million yuan held by the company, such as transactional financial instruments and derivative financial instruments, resulting in a non-recurrent profit and loss of-125 million yuan in a single quarter.
The ability to manage and control the three fees has been enhanced. 19Q3's single-quarter gross profit margin is 19.80%: the company's 19Q3 sales expense rate, management expense rate (including R & D expense rate) and financial expense rate are 0.51%, 7.37% and 7.68%, respectively, compared with the same period last year. + 0.05pct,-0.95pct,-1.07pct, the total rate of three fees (including R & D) is 15.57%, compared with the same period of 1.79pct, reflecting the enhanced ability of the company to manage and control the three fees. The company's gross profit margin in the first three quarters was 16.89%, including 19.80% in the third quarter, and the company's cost control ability was further improved.
In the first three quarters, the company is under construction of 4.864 billion yuan, + 59.45% compared with the same period last year, mainly due to the increase of large-scale machinery and engineering equipment under construction.
High growth in the total amount of newly signed orders and balanced development of multi-business: over the past 19 years, the company has signed a number of new orders and contracts. In September 19, the company signed a contract with Guangzhou Nansha United Container Terminal Co., Ltd. "Guangzhou Nansha Port Phase IV Container Terminal automatic handling system Purchasing Project (Phase I)", the total amount is about 1.638 billion yuan (including tax and price), which is expected to be put into trial operation in 2021. In addition, the company's port machinery, steel structure and other newly signed orders to maintain high growth. In the first half of 2019, the newly signed contract value of the port machinery business was US $1.478 billion, an increase of 11.72% over the same period last year. Hong Kong machinery products entered the world's 102nd country and region, and the company's independently developed intelligent straddle vehicle products signed the first commercial contract. Major marine engineering projects are progressing smoothly, with the successful delivery of a number of offshore engineering ships, and the company is responsible for the construction of the world's largest gravel laying leveling ship "Yihang Jinping 2".
Smooth launching; steel structure business situation is good, the company's Croatian bridge project is by far the largest cooperation project between China and Croatia, while the company in the domestic wind power steel bridge market to further consolidate. In the first half of 1919, the newly signed contracts for the company's marine engineering and steel structure-related business were US $469 million, an increase of 9.32% over the same period last year, of which the newly signed orders for steel structure business were US $368 million. In addition, the company has performed well in the areas of investment, sea service, electricity, consumption of people's livelihood and digital industry.
Profit forecast and investment rating: the company is in an absolute leading position in the Hong Kong machinery industry, marine clearance is relatively sufficient, it is expected that the company's performance has entered an upward channel. It is estimated that the company's net profit in 2019-21 is 563 million, 659 million, 833 million yuan, corresponding to EPS 0.11,0.13,0.16 yuan, corresponding to PE39, 33, 26X. Maintain a "buy" rating.
Risk hint: the post-machine market development of Hong Kong is not as expected and the recovery of global trade is lower than expected.