China Chemical (601117)： Signing of large overseas orders is expected to accelerate the release
China Chemical (601117): Signing of large overseas orders is expected to accelerate the 杭州夜网论坛 release
New large overseas orders signed, performance expected to accelerate release 1) The company announced on October 13 that it has signed a new Baltic Chemical Complex project in Russia. The project type is FEED + EPC general contract, and the total contract amount does not exceed 12 billion euros) 94.3 billion).
2) The content of the project is to build a natural gas processing chemical plant. The plant equipment mainly includes: 2 sets of 140 ethylene cracking devices with an annual output, 6 sets of 48 polyethylene polyethylene devices with an annual output, and 2 sets of 13 with an annual output.
July LAO (annual output 6.
2 free radicals 1-butene and an annual output of 7.
5 free radical 1-hexene) devices and off-site facilities.
This project is the world’s largest ethylene integration project, and it is also the project with the largest single contract value in the global petrochemical field.
The term is 5 years, with an average of about RMB 188 per year.
600 million yuan, accounting for 23 of the company’s 2018 revenue.
3) The project is implemented in three phases. The first phase is the extended basic design phase; the second phase is the early engineering (long-cycle equipment scheduling and site preparation) phase; the third phase is the project implementation phase.
The three phases are implemented crosswise, with a total construction period of 60 months.
The advance payment for the first phase of the contract is 25% of the contract value in this phase. If the contract is successfully completed, it is expected to have a positive impact on the company’s operating performance in the future.
Orders and revenue accelerated in August. According to the expected growth of overseas orders, according to the company’s operating data announcement, the company accumulatively signed 1069 new contracts in January-August 2019.
4 ‰, an increase of 8 in ten years.
3%, of which the domestic contract amount is 707.
10,000 yuan, an increase of 37 in ten years.
0%, the overseas contract amount is 362.
3 ‰, a decrease of 23 per year.
1%; gradually achieve operating income of 533.
40,000 yuan, an increase of 17 in ten years.
Looking at the single-month order, the company’s new contract value in August 2019 was 118.
90,000 yuan, an increase of 45 in ten years.
4%, of which the domestic contract value is 76.
30,000 yuan, an increase of 101 in ten years.
4%, overseas contract value 42.
600 million, a decrease of 2 every year.
9%; operating income for the month was 78.
50,000 yuan, an increase of 26 in ten years.
2%, the company’s August new millennium orders and revenue significantly increased.
The growth rate of orders in January-August 2019 is relatively improved as compared to 2018, especially overseas orders have shifted. Considering this order, it is expected that the order growth rate will gradually exceed 60%.
Highlighting the strength of overseas order acceptance, strengthening the breakthrough of overseas order strength of construction companies along the “Belt and Road” region, and continuously undertaking a series of large overseas orders.
7%, the highest for construction central enterprises.
According to CCTV, the company currently has more than 320 overseas projects under construction, with a cumulative contract value of more than 58 billion U.S. dollars. The projects are located in more than 60 countries and regions including Russia, India, Malaysia, UAE, Saudi Arabia, Pakistan, Kazakhstan, Turkey, Egypt.
Among them, there are more than 220 projects under construction in the countries along the “Belt and Road”, and the contract value is converted into nearly 45 billion US dollars.
After the completion of the Russian Baltic Chemical Complex project, it has demonstrated the company’s ability to accept overseas orders, and has also increasingly strengthened the company’s construction of areas along the “Belt and Road”.
Profit forecast and investment rating company As a leading chemical engineering company, 18 years of high gross profit new breakthrough single high growth, we previously expected that the company’s high growth orders will gradually be converted into revenue and release profits, the effect has gradually improved, 19H1 gross profit margin has increased.
Recently, the newly signed domestic hexadiyne project has enhanced the company’s technical strength, coupled with the transformation of the Russian Baltic Chemical Complex project, the company’s asset impairment losses have significantly decreased this year, and the average growth has increased the company’s profits.The company is expected to realize net profit attributable to mothers in 19-21.
9 trillion, maintaining the company’s reasonable value 8.
2 yuan / share and “Buy” rating remain unchanged, corresponding to the company’s 19-year PE estimate of about 16.
Risk warning: exchange rate risk, asset impairment loss risk, downward pressure on oil prices, project execution is less than expected, overseas political risk, and new business development fails to meet expected risks.