Introduction to this report:
As a leader in the container industry, the company is involved in various fields such as energy equipment and logistics equipment. We judge that the container, energy equipment, logistics and transportation industries are expected to recover, and we are optimistic about the company's performance growth.
Key points of investment:
Investment advice: The company is a leader in the container industry. It is involved in energy, logistics equipment and other fields. The downstream boom in containers and marine engineering is picking up, and we are optimistic about the company's performance growth. Due to the impact of non-recurring profit and loss on performance in 2023, retaining low price orders affected profit margins. The company's 2023-25 EPS was lowered to 0.06/0.45/0.80 yuan (originally 0.13/0.48/0.82 yuan), comprehensively comparable to the company's 2024 PE and PB valuations, and the company's target price was lowered to 10.69 yuan (originally 10.83 yuan) to maintain the increase rating.
The results fell slightly short of expectations. The company announced that it expects to achieve annual net profit of 2.5-375 million yuan/-92% ~ -88% YoY in 2023, and achieve net profit without deduction of 48-72 million yuan/-89% to -83% YoY. Corresponding to the 2023 Q4 net profit of -2.46 to -121 million yuan/year-on-year negative change. The year-on-year decline in the company's performance was mainly due to: 1) due to geographical conflicts in 2023, demand for traditional container businesses weakened, and demand for 2023Q4 containers rebounded steadily year on year; 2) exchange rate fluctuations caused exchange losses, project impairment, and the impact of one-time fee accruals at the end of the year, resulting in high non-recurring profits and losses.
The boom in the container and offshore industry is picking up, and we are optimistic about the company's performance growth. The container industry is in the inventory removal stage, demand for containers is gradually recovering, and the price of new dry container containers remains stable in 2023. Offshore oil investment in the offshore industry is picking up well. In the first half of 2023, the overall offshore oil and gas market continued to strengthen. The capital expenditure for offshore oil and gas projects reached 68 billion US dollars/+57% year over year. We expect deep-water drilling platforms, FPSO and other industries to enter a new boom cycle.
The A-share buyback shows confidence. The company completed the repurchase of 4.19 million A-shares on January 5, 2024. The repurchase price range was 8.28-8.38 yuan/share. The company actively promoted share repurchases, demonstrating the company's confidence in business recovery and corporate value.
Risk warning: falling oil prices have led to a reduction in downstream capital expenditure, the expansion of polysilicon production falls short of expectations, etc.