China Shipbuilding (600150) Company Dynamic Comment: South-North Ship Implements Joint Reorganization Ship Assembly Listing Platform Established in Hope

China Shipbuilding (600150) Company Dynamic Comment: “South-North Ship” Implements Joint Reorganization Ship Assembly Listing Platform Established in Hope

Event: On October 31, 2019, the company released the 2019 third quarter report.

The company achieved revenue of 163 in the first three quarters.

47 million, an increase of 45 per year.

98%, net profit attributable to mother is 0.

96 trillion, a decrease of 68 a year.

9%, net profit after deduction is -0.

64 ppm, compared with expectations for the same period last year3.

07 billion US dollars, a year to reduce losses.

Among them Q3 single quarter income 65.

740,000 yuan, an increase of 84 in ten years.

65%, net profit attributable to mother is 0.

51 ‰, a decrease of 49 per year.

68%, net profit after deduction is 0.

2 trillion, the same increase of 57.


The growth rate of revenue reached the highest value in the same period of ten years. The net profit after deduction is substantially reduced, and the cost rate during the period is reduced. The control fee is effective: In terms of profit, the company achieved revenue of 163 in the first three quarters.

470,000 yuan, an increase of 45 years.

98%, with a single quarter revenue of 65.

740,000 yuan, an increase of 84 in ten years.

65%, the growth rate is the highest value since the same period since 2010.

Realize the net profit after deduction is -0.

64 ppm, a significant reduction in losses previously2.

43ppm, the net profit after deduction for a single quarter is 0.

2 trillion, the same increase of 57.


In terms of fee control, the company’s period expenses in the first three quarters of 20197.

44%, down 2 each year.

87pct, of which sales expenses / management expenses (excluding R & D) / financial expenses are 2 ‰ / 6.

63 ppm / -2.

1.7 billion, the expense ratio is 1.

22% / 4.

06% /-1.

33%, change 0 every year.

23pct / -1.

63pct / -0.

34pct, except for the sales expense ratio, all other expense ratios have declined.

Asset reorganization Forging and shipbuilding listing platform merged with North and South Ships to implement joint reorganization, the industry concentration has significantly increased, and the company’s leading state-owned enterprise has also highlighted: On September 17, 2019, the company released a major asset reorganization adjustment plan, which was placed in Hudong Heavy Machinery and injected into JiangnanShipbuilding, Guangzhou Shipyard International, and Whampoa Wenchong are three high-quality shipbuilding companies. After the reorganization is completed, the company will become the CSSC Group and the ship’s final assembly listing platform.

In addition, on October 26, 2019, the State Council approved the joint restructuring of China Shipbuilding and China National Heavy Industries, and the reorganization of the two major shipbuilding groups will enter a substantial stage.Based on the estimated changes in past military asset injections, it is expected to generate excess returns.

Asset reorganization The merger of North and South Ships will significantly increase the concentration of China’s shipbuilding industry, and the company’s advantages as a leading state-owned enterprise will be further highlighted.

To build a blue water navy, the company’s warship business is expected to welcome hundreds of billions of market space: under the background of gradually promoting the modernization of military equipment, military budgets have increased against the trend, and China’s military budget in 2019 is 1.

19 trillion, an increase of 7.


Under the background of political emphasis on naval strategic progress, the blue water navy committed to building ocean and deep sea combat capabilities will usher in a new turning point in the navy industry.

The military accelerated the upgrade of equipment. In 2014-2018, the number of naval vessels launched and the total tonnage of ships reached 21/15.

7 tons, has overtaken 9/5 of the US.

3 tons, but in terms of naval equipment, such as the number and performance of aircraft carriers, there is still a large gap with the United States.

Benefiting from aircraft carrier formation and supporting ship construction, the annual carrier and supporting ship market will release more than 100 billion yuan of market space in the next 10 years.

The high-end and environmentally friendly ship types will open up a vast space for the civil ship market. The combination of endogenous and extended development will enhance the competitiveness of the company’s civil ship business. In terms of high-end ship types, the company is the first to expand its business into the high-end ship market in the context of excess structural capacity.R & D expenses in the first three quarters reached 5.

70 ppm, an increase of 10 in ten years.

08%, has successively developed more than 20 very large tankers (VLCC), 8.

50,000 m3 large-scale liquefied gas carrier (VLGC), 400,000 dwt ultra-large ore carrier (VLOC) and other special ship types.

In 2018, Waigaoqiao, a subsidiary company, successfully won a 2 + 4 luxury cruise ship order from CSSC Carnival Cruises Co., Ltd., setting a record for the construction of the first large cruise ship in China.

The company’s high-end ship business competitiveness continues to improve.

In terms of environmentally friendly ship types, environmentally friendly ship types are strongly advocated to replace traditional ship types. The newly-injected subsidiaries Huangpu Wenchong and Guangchuan International have extensive experience in the research and development of environmentally friendly ship types, which will help the company further explore environmentally friendly ship types.

Guangzhou Shipyard International’s super-large ore vessel “Maffa” can reduce hundreds of disposable iron drums each time, effectively avoiding the accumulation of hazardous waste and handling 苏州夜网论坛 problems; the environmentally friendly container ship being built by Huangpu Wenchong is the current global green alternative”Benchmarking Products”.

Endogenous development combined with the extension of the reorganization of assets, the company has significant advantages in the competition of high-end ships and environmental protection ships.

Investment suggestion: Considering the continuous development of high-end ships and environmentally-friendly ships by the company’s civil ships, military ships are expected to welcome the market space of 100 billion yuan, and the “South-North Ship” is implemented to implement a joint update. The company’s performance is gradually increased and released.Net profit attributable to mothers is 2.

7.8 billion, 3.

6.3 billion, 4.

690,000 yuan, EPS is 0.

20 yuan, 0.

26 yuan,淡水桑拿网 0.

34 yuan, corresponding to PE is 102 times, 78 times, 60 times.

Risk reminder: the progress of asset restructuring is less than expected, the ship and marine engineering equipment manufacturing industry is changing, the price of main raw materials fluctuates, the defense of the navy is less than expected, the exchange rate risk, the economic downturn and the recovery of civilian ships is less than expected