Dongfang Cable (603606) annual performance pre-increasing comment: Submarine Cable’s high revenue growth continued to exceed expectations
Event: On January 4, the company issued a 19-year annual performance pre-announcement announcement. It is expected that the company will realize net profit attributable to mothers in 194.
55 billion yuan, an annual increase of about 165%; deduct non-net profit4.
45 billion yuan, an increase of 176% over the same period; of which, the company is expected to achieve net profit attributable to mothers in 19Q4.
53 billion yuan, a year-on-year increase of 173%;
46 billion yuan, a year-on-year increase of 197%, continuing to exceed market expectations.
Submarine cable revenue has grown rapidly, and high added value has helped increase profitability.
In 19 years, the company’s revenue increased by about 20% to 36 in ten years.
300 million, of which the submarine cable system and offshore engineering accounted for over 40% of 西安耍耍网 revenue. We expect the company’s submarine cable to confirm revenue of nearly 500 million in the fourth quarter, and offshore engineering confirmed revenue of nearly 0.
700 million, the submarine cable net interest rate increased to more than 26%.
The high-value-added submarine cable revenue has grown rapidly, driving the company’s overall performance to improve.
The reserve of orders in hand is sufficient to ensure future performance growth.
Offshore wind power installation trend is obvious, and submarine cable production capacity continues to be in short supply.
Since the beginning of 19, the company’s submarine cables have gradually won the bid with tax amount of 23.
800 million (including submarine cable installation) can already support the initial company’s submarine cable output value for 20 years.
21 years 杭州夜网 is the rush installation year for offshore wind power. 20 years of submarine cable orders are expected to continue to be high. Successive submarine cable orders in turn will continue to ensure the company’s future growth.
Technological transformation and merger of Ningbo production base will further expand production capacity.
The company plans to carry out relevant technical transformation of the existing submarine cable production capacity, and at the same time will transfer the original production base originally located in Zhoushan to Ningbo, and implement high-end marine energy equipment cable system projects. It is expected to reach full production in the second half of 21; the company is also established in YangjiangThe subsidiary will further expand the company’s submarine cable production capacity.
Investment suggestion: Considering the continuous high growth of the company ‘s submarine cable business and the release rhythm of production capacity, increase the company’s net profit for 2019-2021 to 4, respectively.
80 billion, EPS is 0.
Taking into account the high barriers of the submarine cable business, the company was given an estimate of 16 times in 2020 and maintained a “Buy” rating.
Risk reminders: offshore wind power development, company capacity expansion progress, completed single schedule is less than expected, raw material price fluctuations, industry competition pattern changes and other risks