China's mid-term net profit growth of over 80%

"The first high-priced stocks in the two cities" China Shipbuilding (600150) announced today that the company achieved a net profit of 199 million yuan, an increase of 86.87%, and earnings per share of 0.759 yuan.

Have a complete industrial chain

The semi-annual report shows that in the first half of the year, the company seized the favorable opportunity of strong demand in the shipping market, fully mobilized production resources and social supporting resources, and exceeded the economic indicators such as production and operation: diesel engine completed 852,000 horsepower, up 20.99% year-on-year; sales 13.39 100 million yuan, an increase of 30.02%. The gross profit rate of the company's main products diesel engine reached 22.71%, an increase of 5.75 percentage points year-on-year. The semi-annual report believes that due to the increase in the sales price of Diesel Engines, the gross profit margin of this period has increased significantly compared with the same period of the previous year.

During the reporting period, the three major investment projects of Shanghai Zhongchuan Sanjing Shipbuilding Diesel Engine Co., Ltd., Shanghai Hulin Metal Processing Co., Ltd. and the company's 150 million technical transformation projects were comprehensively promoted according to the schedule; the management of each professional line has different degrees. Progress and improvement.

In January of this year, China Ships acquired the relevant shares of Shanghai Waigaoqiao Shipbuilding Co., Ltd., China Shipbuilding Chengxi Shipbuilding Co., Ltd. and Guangzhou Zhongchuan Yuanhang Wenchong Ship Engineering Co., Ltd. through private placement. The semi-annual report said that at present, the non-public offering of shares has been basically completed. The company has become a listed company with a complete industrial chain integrating large-scale civil shipbuilding, high-power low-speed diesel engine manufacturing and ship repair. The company's share capital structure is about to undergo major changes. It is expected that the accumulated net profit at the end of the next reporting period will increase significantly compared with the same period of the previous year.

Diesel engine business becomes a bright spot

On July 27, at the second extraordinary shareholders meeting of the company in 2007, “Hudong Heavy Machinery” officially entered the history, and “China Ship” made a high-profile appearance. The industry generally believes that this indicates that the company will formally expand from the original ship's heart-engine production to focus on building the flagship of China's shipbuilding industry. According to the semi-annual report, the company will actively develop the marine diesel engine manufacturing business, expand the ship repair business, and strive to become the internationally competitive ship industry leader of China State Shipbuilding Corporation. The group has become the world's No. 1 shipbuilding group as soon as possible. At present, the main risks faced by the company are the risk of rising risks such as cyclical risks in the shipbuilding industry, RMB exchange rate risks, energy and raw material prices.

It is understood that the diesel engine produced by Chinese ships has a market share of about 60% in the domestic market. The market position is very stable and the orders are very sufficient. At present, many shipyard orders have been signed in 2010. Huang Dongsheng, an analyst at Changjiang Securities, believes that with the world shipbuilding center shifting to China and the industry's high level of prosperity, China's ship production and orders have increased significantly, and the gap in marine high-power diesel engines continues to expand. The current gap is about 30%. This huge market has laid the foundation for rapid growth of Chinese ships. According to Bohai Securities, China Shipbuilding will realize earnings per share of 3.3 and 4.28 yuan in 2007 and 2008, based on full consideration of this asset restructuring. The new company after the asset injection, Waigaoqiao Shipyard will be the main profit.

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