Events:
The company announced on August 25 that its revenue in the first half of 2022 was 1.018 billion yuan (+ 74.43%), the net profit was 40 million yuan (+ 26.849%), the non-return net profit was 35 million yuan (+ 23.90%), the net cash flow of operating activities was 347 million yuan (+ 330.989%), the gross profit margin was 7.72% (- 7.35pcts), and the net profit rate was 3.93% (- 1.64pcts).
Main points of investment:
The shipbuilding industry maintained a high demeanor and achieved steady growth in revenue and net profit. The company is the only integrated solution provider in the industry that integrates ship design and construction, advanced R & D and manufacturing suppliers, and new energy integrated service operators. its main business covers three major areas: ship and sea engineering, defense equipment and new energy. Benefiting from the obvious improvement in the shipbuilding market, the company had a revenue of 1.018 billion yuan (+ 74.43%) in the first half of 2022, a net profit of 40 million yuan (+ 26.846), and a net profit of 35 million yuan (+ 23.90%).
In the face of the epidemic and many other challenges, the shipbuilding industry as a whole has shown strong resilience and vitality. According to the shipbuilding industry association, from January to June this year, the national shipbuilding completed 18.5 million deadweight tons, down 11.6% from the same period last year, an increase of 64.20% month-on-month in June. The number of new orders received was 22.46 million deadweight tons, down 41.3% from the same period last year and a sharp increase of 107% in June from the previous month. As of the end of June, the number of hand-held ship orders was 102.74 million deadweight tons, an increase of 18.6% over the same period last year and 7.20% higher than that at the end of 2021.
The ship and sea project is full of orders on hand, and the comprehensive ability of design and construction is highlighted. Chuanhai Engineering is the company's traditional business segment, with revenue of 775 million yuan during the reporting period, an increase of 114.860% over the same period last year, accounting for 80.139% of the company's revenue. Relying on Jiahao Shipping Sea, Dajin heavy Industry, Thai Shipbuilding heavy Industry and other subsidiaries, the company fully covers key links such as ship and sea engineering R & D and design, engineering consulting and supervision, and final assembly integrated manufacturing, forming an omni-directional and multi-level technical service system. During the reporting period, the company signed 62 new orders, 223 orders were in hand and 41 orders were completed.
The company has a certain technological lead in the development and design of clean fuel ships. The company designed the world's first dual-fuel port operation tugboat and Asia's first single LNG fuel port operation tugboat for CNOOC Energy Development Co., Ltd., which is China's clean port demonstration project; China's first dual-fuel platform guard supply vessel is designed for COSL, which is used to replace the old and highly polluting ships in offshore oil and gas fields, and is a demonstration project for the use of clean fuel in China's offshore oil and gas fields.
At the same time, the company also maintains a leading position in the market in the design of offshore engineering ships, wind power engineering ships and special engineering ships. products include deep-water pipe laying ships, new deep diving mother ships, extra-large crane ships, large oil spill recovery ships, rescue and salvage work platforms, and so on. Among them, the saturated diving support ship designed by the company is the highest-end ship type of marine engineering ships.
In addition, the rapid rise of offshore wind power construction has also promoted the growth of phased demand for offshore wind power construction, transportation and operation and maintenance ships. the company has developed and designed a series of new equipment such as Jack-up offshore wind power installation platform. to provide support for the national wind power new energy construction.
The cash flow of operating activities has improved, and the company has achieved remarkable results in recent years. The company encountered a liquidity crisis in 2018, then introduced the restructuring shareholder Longhai heavy Energy, successfully completed the restructuring in 2020, and entered a strategic recovery period in 2021. The company's original core team remained stable, and introduced professionals in defense, energy, finance and other fields, effectively supplemented the company's talent team, and vigorously optimized the shareholder and governance structure. The company recovered a large amount of accounts receivable from the DJHC 8008.8009 project in the first half of 2022, realizing the net cash flow generated by operating activities of 347 million yuan (+ 330.98%).
Shanghai epidemic situation, steel prices and other factors put pressure on the cost side of the company. The company's operating cost in the first half of the year was 939 million yuan, an increase of 89.539% over the same period last year. In terms of ship and sea engineering, first, because the start-up volume of ship and sea engineering business has increased, the cost has risen accordingly; second, because the ship construction process has encountered great challenges such as soaring steel prices, local epidemics, and increased labor costs, most of the projects delivered in the first half of the year are orders accepted when the ship market was not booming in the past, resulting in an increase in costs and a decline in gross profit margin.
Investment advice:
As a domestic veteran leader in R & D and manufacturing of private ships and marine engineering, the company has attached importance to research and development for a long time, has strong technical strength, and has obvious advantages in the fields of ship and sea engineering, defense equipment and new energy. after restructuring, it has entered a new stage of healthy development, benefiting from the high demeanor of the industry under the background of ship and sea engineering and double carbon, the performance is expected to continue to maintain steady growth. It is estimated that in 2024, revenue will be 22.03max 38.85 / 4.165 billion yuan, net profit will be 1.04 pound 2.11 / 304 million yuan, corresponding to P/B4.43/3.96/3.45, the "buy" rating will be maintained.
Risk Tips:
The risk of recurrent epidemic situation in some areas, the lower-than-expected recovery of the industry, the risk of customer default, the risk of fluctuations in raw material prices and labor costs