CNOOC Engineering (600583): Single-quarter results reversed loss orders and continued high growth

CNOOC Engineering (600583): Single-quarter results reversed loss orders and continued high growth

Investment points Q3 single-quarter results turned losses, orders continued to grow rapidly: According to the company’s three quarterly report, the company achieved revenue of 80 in the first three quarters of 2019.

600 million, +21 a year.

2%; net profit attributable to mother -6.

40,000 yuan, an annual loss of 5.

0 ppm; net profit attributable to non-parents is -8.

10,000 yuan, a loss of 5 a year.

500 million.

Q3 single-quarter revenue reached 35.

100 million, +13 for ten years.

9%; net profit attributable to mother 0.

79 trillion, +84 for ten years.

5%, turnaround loss.

The company seized the service market opportunities brought by the CNOOC’s “seven-year action plan” for increasing reserves, and the operation volume continued to be full. The first three quarters of steel processing volume were gradually completed.

90,000 structural tons, + 32% in the past; 11,052 ship-day expansions for offshore operations, + 30% per year.

Orders continued to grow rapidly, and the contracted amount in the single quarter of 2019 reached 70.

47 trillion, of which 26 were new contracts.

69 trillion, 43 won.

7.8 billion.

The company contracted a total of US $ 18.3 billion in the first three quarters, an increase of + 76% per year; as of the end of the reporting period, the budget for outstanding orders in hand was 28.7 billion.

It is expected that full orders in hand as the company continues to advance underground will translate into high growth in future revenue.

Q3 gross profit margin improved month-on-month, and cash flow from operating activities improved: The company’s Q3 合肥夜网 comprehensive gross profit margin for the single quarter was 7.

6%, +0 per year.

3pct, +5 ring.

In terms of three fees, the company’s sales rate / management rate (including R & D) / financial rate for the first three quarters of 2019 are 0.

2% / 5.

3% /-0.

4%, respectively +0.

1 / -2.

0 / + 0.

6 points.

In terms of assets, the company’s inventory reached 40 at the end of the reporting period.

60,000 yuan, an increase of 40 from the beginning of 2019.

1%, mainly due to the increase in completed and unsettled projects.

We expect that in Q4, with the centralized recognition of revenue, the company’s inventory will be effectively digested; prepayments2.

60,000 yuan, an increase of 119 over the beginning of the year.

6%, mainly due to the increase in prepayments for materials purchased under construction 南京夜网 projects.

In terms of cash flow, the company’s net cash flow from operating activities in the first three quarters was -0.

16 ppm, a reduction of less than 16 a year.0 million yuan, mainly due to the company’s gradual reconstruction project construction funds, operating activities gradually increased by 18.

5 ppm; the steady progress of the gradual transformation project, the cash increase in operating activities increased by 2 every year.

The net cash flow, which was counteracted by the two factors, increased by US $ 400 million compared with the same period last year.

The policy side continued to promote oil and gas production, and the company directly benefited from three barrels of oil capital expenditure increase code: Under the current severe indicators that the oil self-sufficiency rate continued to decline, the country has made important instructions many times since 2018, requiring domestic oil companies to increase their reserves.Production.

Three barrels of oil responded positively to the national call. Taking CNOOC as an example, its “Seven-year Plan” announced in January 2019 clearly speeds up oil and gas exploration and development, and plans to double its exploration workload and proven reserves by 2025. In May 2019, CNOOCAnnouncing the target of 20 million cubic meters of coal in the western South China Sea and 2000 inches of coal in the eastern South China Sea by 2025, that is, the oil and gas production in the western South China Sea will nearly double within 7 years, and the eastern South China Sea will increase by nearly one-third; the actual capital expenditure of CNOOC in the first three quarters of 2019 was 53.2 billionYuan (previously planned 7-8 million yuan), + 47% per year, high growth trend continues to be verified.

At present, the company’s domestic revenue mainly comes from three barrels of oil, mainly CNOOC. Against the background of the deterministic acceleration of capital expenditures of three barrels of oil, we expect the company’s revenue to benefit directly, and future performance is expected to continue to improve.

Profit forecast and investment grade: The company’s orders on hand continue to grow rapidly.

As for the industry, it is expected that the increase in volume (increase in orders and increase in workload) will lead to higher prices (increase in price levels).

However, based on the company ‘s surpassing expectations for overseas business in the first half of the year, we revised down the company ‘s performance forecast. It is expected that the company ‘s revenue for 2019-21 will be 15.12, 18.21 billion, and the net profit attributable to the parent for 2019-21 is expected to be zero.

97, 4.

10, 10.

3.7 billion, corresponding to PE at 258, 61, and 24 times in 2019-21. Maintain “Buy” rating.

Risk reminder: the risk of large fluctuations in oil prices, project progress exceeding expectations, and project implementation risks