CNOOC Engineering (600583): The recovery is on the way; there is no need to over-bundle a single new domestic single-penetration pile in a single season

CNOOC Engineering (600583): The recovery is on the way; there is no need to over-bundle a single new domestic single-penetration pile in a single season

1Q19’s performance was in line with expectations. In the first quarter of the year, CNOOC’s 19 operating income increased by 43% to 17.

9.4 billion; net profit attributable to mother -2.

61 ‰, a loss reduction of 1 ‰ compared with the same period last year, in line with our expectations.

New millennium single 51.

14 ‰, a year-on-year decrease of 10%; of which, the amount of newly signed overseas orders was 50.

2.4 billion, previously turned 4.

4 times, while newly signed domestic orders amounted to 90 million yuan, a year-on-year decrease of 98%.

The gross profit margin was -10%, which temporarily improved by 2.

6 units.

We believe that the company’s 1Q19 performance improvement and gross margin recovery averages are within expectations. Considering that the first quarter is the traditional off-season for the engineering industry, we believe that the trend of company performance recovery in the next few quarters will be more obvious.There is no need to over-expect the potential for future domestic market growth.

Trend The new domestic long-term single replacement in the first quarter of 19 may be the cause of many years of contract.

CNOOC announced a 46% increase in capital expenditure in 1Q19, and stated that it expects to be confident in completing a capital expenditure plan of 7-8 million yuan, which is in line with the growth rate of CNOOC’s 1Q19 revenue.

In addition, CNOOC raised its output targets for the next three years in its strategic outlook at the beginning of this year, and proposed to plan too many new project development plans in China’s offshore waters to support future grain growth. We believe this will bring great benefits to CNOOC Engineering this year and nextTo generate a considerable amount of new orders.

Looking forward to the arrival of more large overseas orders in the near future.

In addition to the company ‘s announced overseas contracts for the construction of LNG modules worth up to US $ 5 billion, we expect the company to track bids for Saudi Aramco Marjan projects, bid browsing projects, and Russian Arctic 2LNG projects that have all landed within the year.

A number of projects under construction have entered the closing stage, and the gross profit margin is expected to recover.

Domestically, according to the CNOOC plan, the Dongfang 13-2, Bozhong 34-9, Wenchang 13-2 and Caofeidian 11-1 / 11-6 projects, which are mainly responsible for onshore construction, will be put into production 佛山桑拿网 within this year;The construction progress of a construction project currently ranges from 67-98%. We believe that during the project closing period, CNOOC Engineering is expected to predict the opportunity for CNOOC contract price changes to achieve better gross profit margin.

Overseas, Qatar’s NFA and Brazil’s FPSO P70, two projects with at least gross profit margins, are about to enter the closing stage, and the drag on the overall gross profit margin will soon be terminated.

Earnings forecasts remain unchanged.

Estimates and recommendations maintain target prices.

7 yuan is unchanged, corresponding to 1.

4x 2019 PBR and 29% upside.

Maintain recommended level.

The current consensus of the company corresponds to 1.

1x 2019 P / B ratio.

Risk oil prices fluctuated sharply, new growth exceeded 失败:重查 expectations, and gross margin recovery was slower than expected.