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PetroChina Engineering (600339): Order-driven revenue exchange improves performance management and boosts the future

Event: The company announced that it achieved revenue of 586 in 2018.

200 million, an increase of 5 in ten years.

9%, realizing net profit attributable to mother 9.

500 million, an annual increase of 42.


In Q1 2019, it achieved revenue of 93.

500 million, an increase of 12 in ten years.

6%, to achieve net profit attributable to mother 0.

6.5 billion, an increase of 342 in ten years.


Revenue grew steadily, and exchange gains increased performance: In 2018, oil and gas field surface engineering revenue was 246.

400 million, previously +11.

1%, gross profit margin 6.

8%, +0.

91 points.

Pipeline and storage and transportation engineering revenue 174.

800 million, at least -1.

0%, gross profit margin 5.

4%, -2.

25 points.

Refining and Chemical Engineering Revenue 126.

800 million, at least -2.

5%, gross profit margin 9.

38%, -5.


Environmental engineering, project management and other business revenues34.

3 billion, gross profit margin 11.

5%, -2.


Comprehensive gross profit margin for 2018 7.

5%, year -1.

45pct, mainly because the contracts at both ends of 2016 are at the peak of execution, and the length of some contracts’ gross profit levels.

Sales and management rates rose by 0.

48pct, mainly due to increased R & D.

Finance costs -8.

0.4 billion, -12 every year.

700 million, mainly due to the gradual exchange of net income in 20186.

1.5 billion, an increase of 11 per year.1000000000.

2019Q1 revenue 93.

500 million, an increase of 12 in ten years.

6%, maintaining growth momentum, financial expenses are reduced by 2 every year.

500 million, continued to be boosted by the increase in foreign exchange earnings each year.

The business maintained growth momentum, and new orders accelerated revenue growth: the company’s new breakthrough orders in 2016-18 were 701 billion, 105 billion, and 93.5 billion, respectively, and the new breakthrough orders in the first quarter of 2019 were 11.3 billion, an increase of 59.

4%, has won the bid without signing 43.

4 billion, realized 121 but not effective.

8 billion.

The increase in orders and the ever-increasing capital expenditure plan within the PetroChina system have been enhanced. The China Petroleum Annual Report predicts that capital expenditure in 2019 will be 300.6 billion, an increase of 17%.


At the same time, the company actively explored overseas markets, and the overseas revenue growth rate in 2017/2018 was 37.

4% and 8.


Taking into account OPEC + production reduction and geopolitical factors, oil prices continue to be firm, oil and gas demand is growing rapidly, and PetroChina has increased its investment in exploration and development.

At the same time, the refining, light hydrocarbon cracking, LNG receiving station, gas storage and natural gas pipeline projects ushered in the peak of investment and construction, the company’s four major business recovery momentum continues unabated.

In general, the new single unit is expected to remain at about 100 billion yuan, driving revenue to gradually move towards the scale of 100 billion yuan.

The management efficiency is gradually improved and the potential is huge: the company integrates the entire industrial chain construction and service advantages of oil and 深圳桑拿网 gas projects. CPECC, the Pipeline Bureau, Huanqiu, and Kunlun have adopted proprietary technologies and brand competitiveness in various fields, and strong cash collection capabilities support cash flow.The average cash surplus at the end of 2019Q1 in the first quarter of 2018 was 287.


The company strengthened its cash flow management, with a net increase in cash and cash equivalents of 87.

5 billion.

The reduction of the “two golds” has achieved initial results. At the same time as the exchange income has increased, the comprehensive yield has decreased by nearly 10%.

1% to 45.


Along with the high oil prices in 17 and 18 years, orders entered the execution stage, while steel, energy, labor and other costs tended to stabilize. The company’s revenue growth increased cost control, “two gold reductions” and management efficiency improved, and the long-term performance growth potential is huge.

Investment advice: Expected company 2019?
EPS is 0 in 2021.

25\0.36\0.48 yuan.

Maintain BUY-A investment rating with 6-month target price of 6.

2 元,对应2018~2020 年PE 分别为25\17\13 倍 。 Risk warning: The project implementation progress is less than expected, and the order growth is less than expected.