Dongfang Cable (603606): Annual report meets expectations and optimistic about continued high growth of submarine cable faucets
The event company released its 2018 annual report, reporting a series of realized operating income.
24 ppm, an increase of 46 in ten years.
67%; net profit attributable to mothers1.
71 ppm, an increase of 241 in ten years.
55%; net profit attributable to non-attributed mothers1.
61 ppm, a 10-year increase of 345.
09%; estimated average ROE 10.
37%, an increase of 4.
The company plans to increase 3 shares for every 10 shares, and pay 1 dividend for every 10 shares.
A brief comment on the high growth is due to the volume of submarine cables. The decrease in the gross profit margin of submarine cables is a return to normal levels. The company’s business is divided into three parts: land cable, submarine cable and offshore engineering.
The number of reported land cable revenues has steadily increased, but the profitability is poor; the land cable revenues are 18.
82 ppm, a ten-year increase4.
64%; gross profit margin of land cable 7.
75%, a decrease of 3.
Submarine cable grew significantly and became the main force of performance; submarine cable revenue10.
72 ppm, an increase of 802 in ten years.
61%; submarine cable gross margin 29.
80%, a decrease of 9.
Offshore engineering is in the incubation stage, and offshore engineering revenue is zero.
68 ppm, an increase of 208 in ten years.
97%; offshore gross margin of 50.
81%, an increase of 9.
The normal gross profit margin level of the company’s submarine cable 南京夜网 business is about 30%. In 2018, the decline in the submarine cable’s gross profit margin returned to normal levels.
With the rapid development of offshore wind power, submarine cable leaders continue to benefit from China’s additional offshore wind power installed capacity in 2018.
According to incomplete statistics, currently domestic offshore wind power projects under construction exceed 6GW and approval for construction to exceed 22GW. It is expected that the demand for submarine cables will continue to grow rapidly in the future.
The company announced that the submarine cable orders for 16-18 were 2 respectively.
62 ppm, the first quarter of 19 announced orders have reached 9.
Roughly estimated that the company has more than US $ 3 billion in pending orders, and it is 南宁桑拿 expected to be executed within the next 1-2 years, which will become a necessary guarantee for future performance.
It is expected that the company’s revenue for 19-21 will be 38.03/46.
02 trillion, net profit attributable to mother is 3.
08,000 yuan, the corresponding EPS is 0.
93 yuan, the corresponding PE is 25.
0x, maintain “Buy” rating.
Risk reminders: 1) Offshore wind power construction is less than expected; 2) Submarine cable orders are less than expected.