China Chemical (601117): Asset impairment affects performance growth in the new decade

China Chemical (601117): Asset impairment affects performance growth in the new decade

Impairment of assets affects the growth rate of performance, and gross margin increases. Impairment continues to accrue the company’s operating income for 814 years.

50,000 yuan, an increase of 39 in ten years.

1%, achieving net profit attributable to mother 19.

30,000 yuan, an annual increase of 24.

1%, deducting non-net profit 17.

2 ‰, an increase of 12 in ten years.


The company plans to increase it by 11 in the new decade of the year.

95%, operating income increased by 10.

58%, the total profit increased by 10.

twenty four%.

In terms of quarters, Q1-Q4 achieved operating income of RMB 149.11 / 191/196 / 27.8 billion, respectively, an increase of 42% / 32% / 46% / 38% respectively; Q1-Q4 achieved net profit attributable to mothers4.




USD 100 million, a year-on-year growth of 29% / 27% / 22% / 16%.

The company’s 18-year gross margin / net margin was 11 respectively.

6% / 2.

6%, a decrease of 3 over the same period in the previous 17 years.



The decrease in gross profit margin was initially due to the decrease in the gross profit margin of some newly started projects in the engineering construction business, and the exchange gains due to the company’s refined management and RMB depreciation increased (the exchange gains in 18 years increased by 6 from 17 years.

50,000 yuan), reducing the management and financial expense ratios by 1.


9 points.

The company’s 18 years of asset impairment losses12.

6 ‰, a decrease of 3 ‰ in the previous 17 years, mainly because the inventory depreciation reserve was less accrued3.

4 trillion, of which, Sichuan PTA project accrued impairment3.

960,000 yuan, basically the same as in 17 years.

Operating cash flow has increased steadily, and the debt rate has decreased year by year for 18 years.

10,000 yuan, an increase of 20 over 17 years.

2 trillion, the company’s operating cash flow is significantly better than other construction central enterprises, since 2010 the net operating cash flow has been positive.

The ratio of the cash-to-cash ratio in 18 years decreased in 17 years, but the decline in the cash-to-cash ratio was offset.

By the end of 18 years, the company’s asset compensation had been re-63.

9%, down by 1 from the end of 17.

2pct, since 2014, the company’s asset-liability ratio has been decreasing year by year, gradually decreasing5.

04pct, enhanced financial risk control capabilities.

On December 24, 2018, the company’s first phase of 2018 account receivables asset support special plan was formally established with an issue size of 11.800 million.

This will help revitalize 武汉夜网论坛 the company’s existing assets, improve the efficiency of company funds, optimize the company’s debt structure, and promote a more healthy company development.

In the new year, the single item maintained a high growth, and the internal and external diversified business structure was gradually formed. According to the company’s annual report, the company’s new contract value in 18 years was $ 145 billion, an increase of 52.


In terms of separate business areas, the newly signed chemical engineering / infrastructure / environmental governance contracts were US $ 1031/281 / 5.2 billion, respectively, an increase of 56% / 122% / 10%, respectively. Among them, the average value of newly signed contracts for coal chemical and chemical business increasedMore than 50%.

In terms of different regions, the company’s territory / foreign new contracts were respectively US $ 94.6 billion and US $ 50.4 billion, a year-on-year increase of 54% / 50%.

The company’s internal and external diversified business structure has gradually taken shape to achieve a comprehensive increase in internal and external, contract types, and contract amounts in various business areas.

In addition, according to the announcement of the company’s operating data, the company increased by 63 in the new decade from January to February.

5%, continued to maintain a high growth rate.

Profit forecast and investment rating company as a leading chemical engineering company with a life of 18 years.

5%, a single increase of 63 in the new decade from January to February 19

5%, orders continue to increase rapidly, and will gradually translate into revenue and release profits in the future.

It is expected that the company will realize net profit attributable to mothers in 19-21.




The company’s existing PE (TTM) 17.

Five times, the average PE (TTM) of chemical engineering companies is 36 times. It is expected that the company’s net profit attributable to mothers will increase by 20% in 19-21, giving the company 17 times PE in 19 years, and we predict that the company’s EPS in 19 years will be 0.

48 yuan / share, corresponding to a reasonable value of 8.

2 yuan / share, maintain “Buy” rating.

Risk reminders: exchange rate risk, asset impairment loss risk, downturn in overseas markets, downward pressure on oil prices, project execution is less than expected, and new business development fails to meet expected risks.

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