CHINA NATIONAL COMPLETE PLANT IMPORT&EXPORT(000151):OVERSEAS ORDERS FUEL EARNINGS RISE

类别:公司 机构:兴业证券股份有限公司 研究员:HUANG Yang/MENG Jie/LI Xing 日期:2017-03-29

  Company Profile

      China National Complete Plant Import & Export Corp. Ltd. is a China‐based company engaged inimport and export trading of set equipment, general merchandise trading and industrial investment.

      The Company operates its businesses through import and export trading of set equipment, whichinvolves in industries such as energy, chemical, light industry, environmental protection and publicfacilities, among others; general merchandise trading, which include proprietary and contract tradingof commodities such as common beans, shoemaking glue, textile products, construction hardwareproducts, mechanical and electrical products, stationery products and daily use products, amongothers, as well as industrial investment and capital management.

      Event

      China National Complete Plant Import&Export Corp. Ltd. announced that it signed a USD 310 million(CNY 2.1 billion) order with Phong Sub Thavy Road & Bridge Construction Co.,Ltd.

      Comments

      Listed in 2000, China National Complete Plant Import&Export Corp. Ltd. was principally engaged intrading of equipment.

      It started achieving rapid rise of international project contracting business in 2012 and contributed86.62% of total revenue. The Company’s actual controller is State Development & InvestmentCorporation (SDIC), a state‐owned investment holding company approved by State Council, with45.80% stakes in it.

      Amount of orders from overseas clients registered CNY 4.7 billion in 2016 (CNY 30.8 billion in total since2010), up 118.85% YoY.

      China National Complete Plant Import&Export currently has CNY 12.37 billion valid orders, 10.21times that of 2015. We believe, benefiting from the implementation of “One Belt, One Road” strategy,it will enjoy sustainable increase of earnings.

      Revenue of the first three quarters in 2016 was CNY 901 million, growing up by 51.13% YoY comparedto a year earlier.

      The net profit attributable to shareholders stood at CNY 76 million, down 11.75% YoY. As Ethiopiasugar refinery project completed in the end of 2016 and its advance payment went up by CNY 551million in 16Q3 (an effective indicator of its earnings in the near term), we are optimistic about itsperformance in 16Q4. Awarded hi‐tech enterprise qualification and returns from USD assets alsoboost revenue.

      Earnings Forecast and Investment Recommendations: We made EPS forecast for the Company at CNY0.56 in 2016, CNY 0.75 in 2017 and CNY 0.90 in 2018, implying 34.8x/26.2x/21.7x PE. Reiterate BUY.

      China National Complete Plant Import&Export is one of state‐owned enterprises constructing projectsin countries along “Belt & Road” regions featuring small market cap and low PE (30x)。

      Potential Risks: less‐than‐expected orders, slower‐than‐expected progress of projects, forex