occurrences
Jianglong Shipbuilding released its 2023 annual report and 2024 quarterly report: in 2023, it achieved operating income of 1,187 million yuan/yoy +74.4%, and realized net profit of 44 million yuan/yoy +236.45%; in the first quarter of 2024, it achieved operating income of 357 million yuan/yoy +109.57%, and achieved net profit of 14 million yuan/yoy +157.76%.
Key points of investment
Significant improvement in performance, facing an upward inflection point
The company achieved revenue of 504 million yuan in the fourth quarter of 2023
/yoy+75.85% /qoq +102.4%, achieving net profit of 0.28 million yuan/yoy +612% /qoq +833%. The company's performance grew rapidly year on year, mainly due to the successful conversion of orders in previous years, and the company's revenue increased dramatically, driving significant scale effects. In addition, the company's net cash flow from operating activities reached 452 million yuan in 2023, an increase of 216% over the previous year, and the profit quality was excellent.
The company achieved revenue of 357 million yuan/yoy +109.57% in the first quarter of 2024, and achieved net profit of 14 million yuan/yoy +157.76%. The company's revenue continued to grow rapidly in 2024, mainly due to the successive conversion of orders signed in 2023 into revenue. Although the company's gross margin declined year-on-year, various expenses remained stable while revenue doubled. The scale effect was prominent, driving profit growth higher than revenue growth.
Ongoing orders reached a record high, and multiple businesses achieved breakthroughs
According to the company's annual report, the amount of new orders signed by the company and subsidiaries in 2023 reached 2.61 billion yuan, an increase of 128.75% over 2022. By the end of 2023, the amount of the company's current orders without tax reached 2,649 billion yuan, an increase of 120.93% over the same period in 2022. Both new orders signed in 2023 and orders in hand at the end of the year reached record highs.
The company made many breakthroughs in 2023. In terms of new energy boats, the first domestic hydrogen fuel cell-powered workboat “Hydrogen Boat 1” successfully completed its maiden voyage in October 2023. In addition, the company signed a new 50-meter new energy-themed cruise ship on the Xiangjiang River in Changsha in 2023, and delivered 3 pure electric cruise ships, 2 diesel-electric power boats, further improving the construction capacity of new energy boats; in Hong Kong, Macao and overseas markets, the company signed a new order tax amount of 244 million yuan in 2023, including the largest in the world in December 2023. Aquaculture workboat supplier Norway's Moen Marin Company signed a contract for 2 aquaculture workboats, with a total amount of 89.22,800 yuan. This is the first time that the company has received an order for the Nordic market, which means that the company's special ship construction capabilities have been recognized by foreign professional manufacturers, laying the foundation for further developing high-end overseas markets; in terms of production capacity, the company's Zhongshan Second Plant fund-raising project was successfully put into operation in 2023, equipped with advanced equipment such as a 20,000 watt laser cutting machine, a new boring machine, and AC400-1250KVA-RL load cabinets to solve the company's production capacity bottlenecks At the same time, the boat construction capacity was raised to a captain of more than 100 meters and a displacement of 2,000 tons, greatly expanding the scope of the company's order acceptance. Furthermore, the new production capacity base was equipped with a vertical lift with a maximum load of 2,000 tons, greatly improving the company's production efficiency and creating conditions for the company to develop its ship repair business, which is expected to further expand the company's business segment.
Deep-sea aquaculture vessels are expected to create a new growth pole
In October 2023, Aolong Boat, a subsidiary of the company, signed the “Zhuhai Jiuzhou Deep Sea Aquaculture Ship “Jiuzhou 1” Construction Contract with Jiuzhou, Zhuhai. The contract amount is about 250 million yuan. The aquaculture vessel is the world's first natural exchange of water aquaculture vessels. Aquaculture vessels are one of the important methods of deep-sea aquaculture. In recent years, the number of areas suitable for mariculture along the coast of China has been reduced, and deep-sea aquaculture has become an important alternative. In February 2023, the Central Committee Document No. 1 proposed the construction of modern marine ranches and the development of deep-sea aquaculture such as aquaculture vessels. At present, many regions have responded positively to the country's guiding ideals and stepped up the layout of aquaculture vessels. Among them, Qingdao plans to build 50 breeding vessels in the next 5-10 years, Shenzhen plans to build 4 100,000-ton aquaculture vessels, and Zhuhai plans to build 8-10 breeding vessels. The company took the lead in entering the aquaculture ship market and is expected to create a new growth pole.
Profit forecasting
The company's net profit for 2024/2025/2026 is estimated to be 1.4/2.1/270 million yuan, EPS is 0.38/0.56/0.71 yuan, and the corresponding PE is 30/21/16 times, respectively. Based on the company's sufficient orders on hand and its performance reaching an upward inflection point, we are optimistic about the company's medium- to long-term upward development opportunities and maintain a “buy” rating.
Risk warning
Risk of policy fluctuations; downstream demand falls short of expectations; order delivery falls short of expectations; new orders fall short of expectations; risk of fluctuations in raw material prices.