The company is a large-scale comprehensive marine and defense equipment enterprise group integrating marine defense equipment, marine transportation equipment, marine development equipment and marine scientific research equipment. The company has two main subsidiaries of Wenchong and Guangzhou Shipping International, covering four major sectors: defense equipment, ship repair, marine engineering and non-ship business. the main products include military ships, special auxiliary ships, official ships, oil tankers, regional container ships, passenger ro-ro ships, semi-submersible ships, polar module carriers, offshore platforms and other marine marine products, as well as steel structures, complete sets of mechanical and electrical equipment and other non-ship products.
Renewed demand will be the main driving force for a new recovery cycle of the shipbuilding market. With the last round of old ships gradually entering the disassembly stage, the renewal demand will gradually appear. At present, the average ship age of crude oil tankers is 19.8 years, that of bulk carriers is 11.3 years, and that of container ships is 14 years. The updated demand will bring about a new cycle of ship recovery.
Regional container ships as the main application markets of small container ships are regional routes in Asia and Europe. Regional economies in Asia and Europe continue to be active, bringing increasing shipping demand to the regional shipping market. In 2021, the demand for container ships in the Asian region will be 6360 TEU, an increase of 7% over the same period last year, and it is expected that it will still grow by 3.1% and 4.2% in 2022-2023, indicating that in the post-epidemic era, the Asian region is still full of economic vitality and led to a sustained high level of growth in interregional trade and seaborne volume. The prosperity of inter-regional trade will continue to boost the demand for regional container ships. at present, the average age of regional container ships has reached 15 years, and the renewal demand after disassembly in the future will also support the demand for new regional container ships.
In accordance with the strategic requirements of offshore defense and offshore defense, China will accelerate the transformation from offshore defense to offshore defense, improve the capabilities of strategic deterrence and counterattack, maritime mobile operations, maritime joint operations, comprehensive defense operations, and comprehensive support, and strive to build a strong modern navy.
Wenchong, as an important construction force of China's advanced frigates, air cushion landing craft and military auxiliary ships, will fully benefit from the strong demand of our country to build a modern navy, and the company's warship business is expected to maintain steady growth.
The company is a world-renowned construction enterprise of small and medium-sized warships, regional container ships and special ships. In terms of civil ships, the company's regional container ships have reached the global advanced level, which will fully benefit from regional economic development and ship renewal cycle. in addition, the demand for special ships may bring new profit growth points to the company. As for warships, as an advanced frigate manufacturer, it will fully benefit from the process of building a modern navy. The increase in ship price superimposes the improvement of shipbuilding efficiency, which will effectively improve the company's gross profit margin and profitability. It is estimated that the return net profit of the company from 2022 to 2024 is 0.87,5.83 and 696 million yuan respectively, and the corresponding EPS from 22 to 24 years is 0.06,0.41,0.49 yuan respectively, and the corresponding share price PE is 339.58 times, 50.59 times and 42.39 times respectively, maintaining the "overweight" rating.