CNOOC Engineering (600583) 2019 first quarterly report comments: the industry’s economic recovery is recovering and the performance of reducing losses is expected to continue to improve quarter by quarter

CNOOC Engineering (600583) 2019 first quarterly report 天津夜网 comments: the industry’s economic recovery is recovering and the performance of reducing losses is expected to continue to improve quarter by quarter

This report reads: The company’s 2019 first quarter performance reductions are in line with market expectations.

Taking into account the continued recovery of the industry’s prosperity, and the first quarter is the off-season of the offshore installation business, it is expected that the subsequent performance will continue to improve quarter by quarter.

Investment points: Maintain overweight rating and profit forecast.

We maintain the EPS for 2019/2020/2021 to 0.

14/0.

42/0.

67 yuan, maintaining a target price of 8.

29 yuan, increase.

The company’s performance in the first quarter of 2019 was in line with market expectations.

The company achieved net profit attributable to its mother in the first quarter of 2019 -2.

6 trillion, -3 from the same period last year.

6 megabits improved slightly.

The performance improvement in the first quarter was mainly due to two points. First, the company’s workload in the first quarter increased, the daily growth rate of offshore vessels increased by 59%, the volume of steel processing increased by 10%, and revenue increased by 43%.

Second, the company’s financial expenses decreased by 1 compared with the same period last year.

2.6 billion.

Exchange loss for the period was 0.

160,000 yuan compared with the same period last year 1.

The 64 trillion exchange losses have been greatly reduced.

The company’s orders in the first quarter of 2019 fluctuated slightly, and a series of orders are expected to continue to grow rapidly.

The company contracted 51 trillion orders at home and abroad, of which the contract amount in overseas markets was 50 trillion, a slight deviation from 57 trillion in the first quarter of 2018.

The reported number of the company and the Japanese joint venture Fulu joint venture company exceeded 5 billion square meters of module construction contracts, is another large-scale land module undertaken after the Yamal project.

Taking into account the recovery of the offshore industry boom in 2019 and the company’s long-term agreement with Saudi Aramco’s long-term 合肥夜网 offshore engineering, we expect orders to remain high growth.

It is expected that the annual results will continue to improve quarter by quarter.

The first quarter of the company was a traditional business off-season, with a relatively small proportion of workload and operating income.

The company’s early long-term low gross profit margin orders need time to digest. Since the second and third quarters are the peak period for offshore installation business; and through the advancement of LNG projects, the gross profit margin is expected to improve in the later period.

We judge the company’s performance will continue to improve quarterly.

Risk reminder: The capital expenditure of oil and gas companies exceeds the expected risk, and the risk of exchange loss.