Jerry shares (002353): Profitability significantly improved 1H drilling and completion equipment new orders increased by 100%
Investment highlights: Event: The company announced the 2019 semi-annual report and achieved operating income of 25.
78 ‰, an increase of 49 per year.
07%, achieving net profit of return to mother 5.
00 million, an increase of 168 every year.
Among them, the second quarter achieved revenue of 15.
6.7 billion, an increase of 64 every year.
34%, net profit attributable to mothers3.
90 ‰, an increase of 156 per year.
The number of reports, the prosperity of the budget service market, and the company’s business achieved substantial growth.
The domestic oil and gas equipment and service market has strong demand, the company’s revenue has grown rapidly, and its gross profit margin has risen sharply.
Driven by the national energy security strategy, investment in unconventional oil and gas resources, especially shale gas resources, has been expanded for a long period of time, and demand for oil and gas equipment and services has been strong.
In the first half of the year, the company’s coal services and equipment realized revenue24.
26 ppm, an increase of 49 per year.
04%, gross profit margin 35.
34%, an increase of 8 per year.
44 units; budgeted engineering and equipment revenue 1.
5.3 billion, an increase of 49 per year.
53%, gross margin 26.
67%, a decrease of 3.
In terms of different sectors, the company’s oil and gas equipment manufacturing and technical service business realized operating income.
7.1 billion yuan, an increase of 51 every year.
79%, gross margin 36.
03%, an increase of 8 per year.
91 single, we believe that the first is the effect of scale and product structure optimization; maintenance and renovation and sales of spare parts to achieve revenue5.
34 trillion, an increase of 45 per year.
07%, gross margin 31.
36%, an increase of 1 per year.
From the perspective of the operations of the major subsidiaries, the petroleum equipment subsidiaries (corresponding to drilling and completion equipment, etc.) realized revenue12.
20 ppm, an increase of 88 per year.
73%, with a net profit margin of 24.
78%, an increase of 10 per year.
25 units; energy service subsidiaries (corresponding to higher services, etc.) realized revenue7.
07 billion, an increase of 24 every year.
09%, net profit margin reached 17.93%, an increase of 13 per year.
67 averages, reflecting the improvement in oilfield services.
The expense ratio decreased during the period when the scale effect appeared, and the increase in inventory affected the operating cash flow.
In the reporting year, the company’s sales expenses and management expenses increased by 10.
97%, lower than the growth rate of revenue, reflecting the company’s refined management benefits.
Affected by the exchange gains of foreign currency monetary projects, the financial expenses each decreased by 163.
12% (1H confirms approximately 1452 million exchange gains).
Due to the sharp increase in orders of 1H company, the increase in purchase volume, and the increase in the strategic project parts reserve based on market judgments, which led to an increase in cash for purchasing goods and receiving labor services (inventory increased by 1.3 billion US dollars compared to the initial stage), and net cash flow from operating activitiesThe amount is up to -9.
1.3 billion, short-term borrowing also increased.
We judge that through the delivery of orders in hand and the accelerated collection of receivables in the second half of the year, the company’s operating cash flow is expected to improve month-on-month.
Earnings forecast: Based on fast-growing orders in hand and higher profit margin performance, raise the company’s earnings forecast.
The company has strong demand for drilling and completion equipment and coal technology services, orders have grown rapidly, and gross margins have rebounded significantly. New orders were obtained in the first half of the year34.
73 ppm (excluding budget), an increase of 30 in ten years.
56%, of which drilling and completion equipment orders increased by more than 100%.
Based on the company’s actual results and orders in the second quarter, we raised the company’s profit forecast. We expect the company’s net profit attributable to its mothers to be 11 to 19 years.
850,000 yuan, the corresponding EPS is 1.
86 yuan / share, some net assets are 9 respectively.
97 yuan / share, according to the closing price of 26 on August 7.
30 yuan calculation PE is 22.
14 times, corresponding to 2 PB.
Give the company 2 in 2019.
2 PB, corresponding to a reasonable value range of 27.
78 yuan, corresponding to PE in 2019 is 24.
63 times, which is in the range of the estimated level of comparable companies.
Risk warning: oil prices are down, oil companies ‘capital expenditures are less than expected, exchange rates are adversely affected, and company capacity is released slowly.