CNPC Engineering (600339): Stable Order Growth Performance Expected

CNPC Engineering (600339): Stable Order Growth Performance Expected

Event: The company released 2018 and 2019 first quarter performance reports, and achieved operating income of 586 in 2018.

2.3 billion, an annual increase of 5.

89%; net profit attributable to mother 9.

55 ppm, an increase of 42 in ten years.


In the first quarter of 2019, operating income was 93.

470,000 yuan, an increase of 12 in ten years.

57%; net profit attributable to mother 0.

6.5 billion, turning losses into profits before.

Opinion: The annual report performance is in line with expectations, and the first quarter report is slightly higher than expected.

Exchange gains and losses realized in 20186.

15 ppm, an increase of 11 per year.

1.4 billion US dollars, offsetting the impact of foreign exchange, and net profit increased by 31% in 2018.

Net profit in the fourth quarter of 20184.

3.6 billion, an increase of 9%.

Gross profit margin improved slightly.

16h1 / 2, 17h1 / 2, 18h1 / 2 company gross profit levels reached 11 respectively.

19% / 8.

76%, 10.

87% / 7.

93%, 7.

33% / 7.

52%, 2018H2 gross margin increased by 0 compared with the first half.

25pct, the company’s gross margin level has improved slightly.

Orders grew steadily.

The company’s new contract value in 2018 was 934.

62 ppm, a decrease of 10 from 2017.

99%, but won the contract without signing.

$ 700 million with outstanding outstanding contracts103.

Considering 40 million internally, the total contract value in 2018 was 1,075.

32 ppm, an increase of 2 per year.


New long-term single 112 in the first quarter of 2019.

870,000 yuan, an increase of 59 in ten years.

38%, and won the unsigned contract43.

$ 4.5 billion, 121 outstanding contracts have been realized.

8.2 billion.

Business Outlook: 1) The investment space for pipeline storage and transportation is huge.The goal of 30,000 kilometers of pipeline mileage from 18-20 to now needs to be achieved, with an investment of about 300 billion yuan and an average annual investment of 100 billion yuan, which is twice that of 16/17.

By 2025, the mileage of the Iraqi natural gas pipeline network will reach 16.

30,000 kilometers, supplemented by 5.

90,000 kilometers, with an estimated investment of 5900 trillion, with an average annual investment of 118 billion.

As a domestic leader in the construction of oil and gas pipeline networks, the company has strong competitiveness in technical qualifications and other aspects, and is expected to continue to benefit from the increase in investment in pipeline networks.

2) Oil and gas surface projects benefit upstream long-term capital expenditure.

The greater domestic oil and gas exploration and development speed has been increased to the point of ensuring national energy security. PetroChina ‘s capital expansion has picked up from 2017. In 2019, it is determined to continue to increase capital expenditure according to the capital 深圳桑拿网 expenditure plan. It is estimated that the company’s ground engineering business segment receivable and gross profitStrive for continued recovery at least until 2020.

3) Refining and chemical business is about to usher in a period of performance release.

The downstream refining business climate recovery began in 2016 and will continue until the end of 2018. The size of the refining and chemical engineering market will help maintain growth through 2019.

At the same time, the Belt and Road region has huge market potential, and the region’s refining capacity has grown faster than the world average, and the company’s refining orders are expected to continue to grow.

Maintain 19/20 net profit forecast of 16.


2.4 billion, a new 21-year net profit forecast of 25.

8.4 billion, the corresponding eps is 0.



46 yuan / share, PE is 17/13/11 times, maintaining the “overweight” rating.

Risk warning: the risk of falling oil prices, the company’s order growth is not as expected