China Shipbuilding Technology (600072) Brief Evaluation Report: Continuously Promoting Business Transformation Is Expected to Reverse Performance

China Shipbuilding Technology (600072) Brief Evaluation Report: Continuously Promoting Business Transformation Is Expected to Reverse Performance

I. Overview of the event On April 17, the company released its 2018 annual report to achieve operating income of 32.

64 ppm, a reduction of 23 per year.

44%; net profit attributable to mothers was 65.43 million yuan, a year-on-year increase of 115.


Second, analyze and judge the continued downward trend in revenue. In 2019, it is expected to achieve growth. In 2018, the company will achieve operating income of 32.

64 ppm, a reduction of 23 per year.

44%, initially due to the decrease in the revenue of the subsidiary CSSC Nine Institutes. In 2017, the parent company ceased to undertake continuation business, and most of the unfinished projects were completed last year, resulting in a significant decline in the revenue of the ship accessories business; net profit attributable to the mother was 65.43 million yuan.115 per year.

09%, due to the gains from the transfer of the equity of Xuzhou CSSC Sunshine Investment by the subsidiary CSSC Nine Institute; net profit and profit after deducting non-return to the mother was 7,841 million, which was due to the increase in research and development investment of CSSC Nine Institute.Investment returns have decreased.

Expenses for the company during the current year14.

47%, 10 before 2017.

Increase by 49% 3.

98pct, due to the increase in employee compensation and consulting fees and the increase in research and development expenses of the subsidiary of China Shipyard No. 9 Institute.

Among them, R & D expenses were 9,841 million, an increase of 28.


Achieved gross profit margin of 10 in 2018.

07%, continuing the higher gross profit level last year.

The company’s business plan for 2019 is to gradually realize revenue35.

50,000 yuan, an increase of 8 per year compared to 2018.


The shipbuilding services of China Shipyard No. 9 Academy are the mainstay, and land consolidation services have shrunk sharply. In 2015, the assets of China Shipyard No. 9 Hospital were injected into listed companies, general contracting, engineering design consulting and engineering services became the company’s three major business segments.

Revenue in the engineering sector in 2018 was 31.

34 trillion, a decrease of 14 a year.

76%; gross margin is 11.

65%, basically unchanged from 2017.

Among them, the general contracting business revenue was 26.

06 ppm, an increase of 5 in ten years.

62%; engineering design consulting business revenue 4.

22 trillion, a year down 0.

27%; revenue from land consolidation services1.

01 billion, a 合肥夜网 year of decline of 86.


The decline in performance of land consolidation services was due to changes in business models and delays in demolition.

The report abstracts that the traditional design consulting business has participated more fully in market competition, and the general contracting business is affected by the management model, which has further squeezed market share.

It is expected that the construction industry in 2019 will continue to promote the modernization of the construction industry, the development of building energy efficiency and the development of green buildings under the overall plan of the “Thirteenth Five-Year Plan” for the development of the construction industry. The company is expected to gain development potential in the transformation and upgrading.

The ship fittings business continued to decline, and the overall transition quickly advanced. In 2017, the company’s restructuring business, the ship fittings stopped accepting new projects and turned into the completion of hand projects, and the business revenue will gradually decline.

Revenue from the ship accessories business in 20181.

11 trillion, down 80 a year.

64%, the first is that most of the projects in hand were completed in 2017, resulting in a significant reduction in related revenue; due to the overall external environment downturn such as the ship market, the decrease in revenue led to the ultimate destruction of the sector.The number of reports, 52 inter-temporary legacy projects were completed, and the total project receipts was about 1.

At the end of the reporting period, most of the company’s original legacy projects have been completed.

We predict that the transformation of projects in hand is gradually completed, and the revenue of the ship accessories business will continue to decline in 2019, and the company’s business transformation will advance rapidly.

Acquisition of 100% equity of Haiying Group, formation of a high-tech listed platform On March 6, the company announced in an announcement that it intends to acquire 100% equity of Haiying Group. Haiying Group is China’s first hydroacoustic equipment manufacturing company, and its main business isUnderwater acoustic equipment, marine electronics, medical electronics, electromechanical equipment, etc., the company’s net profit attributable to its mother in 2017 and 2018 was 1.

9.3 billion and 1.

20,000 yuan will make a significant contribution to the future performance of CSSC Technology.

The company’s “Development Strategic Plan for 2018-2025” proposes that by 2025, it will become a diversified platform management company for CSSC’s high-tech and new industries.

The acquisition of Haiying Group, which belongs to CSSC Electronics Technology, underscores the company’s determination to build a high-tech listing platform, and its asset injections are expected to continue to increase in the future.

Third, investment advice The company aims to become a high-tech listing platform under the CSSC Group. The future asset injection is expected to break through. We are optimistic about the company’s future outbound acquisitions to increase the performance.

Expected company 2019?
In 2021, the EPS will be 0.

11, 0.

14 and 0.

18 yuan, corresponding to PE of 148X, 116X and 92X, the company’s historical average expectation of 698X, the first coverage, given a “recommended” rating.

4. Risk warnings 1. Asset injection progress is less than expected; 2. Ship accessories business continues to fluctuate