CIMC's semi-annual revenue growth exceeded 40% container business doubled

Zhitong APP was informed that on the evening of the 28th, CIMC (02039) announced its first half of 2017 results. According to the report, benefiting from the improvement of domestic and international industrial prosperity and internal continuous improvement of operations, the Group achieved operating income of nearly 33.387 billion yuan, a year-on-year increase of more than 40%, attributable to shareholders of the parent company and other equity holders. The net profit far exceeded that of the same period last year, which was about RMB 800 million.

According to the report, the main business of CIMC showed a significant improvement year-on-year, especially the two largest business segments (ie container and road transport vehicles), which achieved annual growth of over 105% and 38% respectively. The main contributor to income and profit. In terms of regions, CIMC's revenues in China, other regions in Asia, and the Americas all achieved a large proportion of growth, with revenues in the Americas increasing by nearly 90% year-on-year, and China's regional growth rate as high as 75%. 56%.

Container business doubled year-on-year, and the market continues to be optimistic

Although during the past years of diversified business development, CIMC's container business revenue ratio fell below 1/3, but in the year when the global shipping industry boomed, the business once again became the largest contributor to CIMC's revenue and profit.

Affected by the global macroeconomic environment, trade conditions and the cyclical fluctuations of the shipping industry, CIMC's container business fell to the bottom in recent years, but in 2017, the business was reversed by the opportunity of the industry's bottoming out. The results show that CIMC's container business share still maintains the number one position in the world. It is the only company with a full range of more than 300 container products independently designed and produced in the world. In the first half of the year, CIMC's container business achieved an overall revenue of approximately RMB 10.05 billion, a year-on-year increase of over 105% and a net profit of approximately RMB 680 million. Among them, the cumulative sales of ordinary dry cargo containers was 535,700 TEU, an increase of 124.8% year-on-year; the cumulative sales of refrigerated containers was 35,100 TEU, an increase of 57.4%.

According to the CIMC semi-annual report, in the first half of 2017, the volume of global container shipping market increased more than expected, and the relative imbalance between supply and demand caused the freight rate to continue to rise, due to the continued tightness of the current container and the follow-up situation. Optimistic, customers have increased the procurement of new boxes. However, most factories in the domestic container manufacturing industry implemented the water-based paint modification of the production line in accordance with the industry's water-based paint environmental self-discipline convention in the first half of this year, which also affected the effective production capacity of the industry. The production cost increased in the second quarter, and the container price level remained stable in the first half of the year. increase.

The CIMC semi-annual report predicts that in the second half of the year, the global economy is expected to continue to maintain a moderate recovery and the international trade boom continues to improve. In the analysis report, major securities analysts are bullish on the container market and container demand in the second half of this year. The production capacity of CIMC Containers is expected to rise to the next level. The report revealed that CIMC has increased its investment in HSE (health, safety and environmental protection) in the container manufacturing business, and the level of factory construction will reach a new level. In addition, the relocation project of the new container factory in Fenggang, Dongguan is being carried out in an orderly and proper manner. The first phase of the project is expected to be put into operation early next year.

Vehicle business half-year revenue close to 10 billion

In 2016, when the growth of many business segments in CIMC was limited by the global macro environment, the vehicle business still achieved 14% growth in revenue and 34% profit growth, becoming the star business in recent years. In the first half of 2017, the vehicle business continued its gratifying growth, with a total sales volume of 81,500 units, a year-on-year increase of 39.9%, and a revenue of approximately 9.72 billion yuan. It is currently the second half of the 8 business segments of CIMC. Revenue units increased by approximately 38.6% year-on-year. Net profit was approximately RMB 570 million, representing an increase of approximately 57% year-on-year.

In the first half of the year, CIMC's business revenue and profit in China completed more than 55% of the annual target; the North American market expanded its production capacity to cover a wider area by opening new plants to balance the cyclical impact of each region; the acquisition of the British century-old company Retlan Continue to play synergies with the other two production bases in Europe, and cooperate with the domestic market to promote the market through cost advantages; in emerging markets such as Asia, Australia and Africa, hot markets such as Malaysia and Vietnam are growing rapidly in the context of the “One Belt, One Road” initiative.

Most of the other main businesses are gaining momentum. The future of the natural gas equipment market is huge.

Enric's subsidiaries, which are mainly engaged in energy, chemical and liquid food equipment, also achieved a turnaround in the first half of the year. In the first half of the year, CIMC Enric achieved revenue of 5.06 billion yuan, up 16.65% year-on-year; net profit was about 52.26 million yuan. Its energy and chemical equipment products and services are distributed throughout the country and exported to Southeast Asia, Europe and North and South America. The production bases of liquid food equipment products are located in Europe and China, and its products and services are supplied globally. In the first half of the year, energy equipment, chemical equipment and liquid food equipment all achieved revenue growth. Among them, Briggs, a British century-old liquid food equipment company acquired last year, played a positive role.

CIMC Enric suffered a loss last year due to the risk of acquiring Nantong Pacific Offshore (SOE), and the incident was better resolved in the near future.

In July, Enric once again re-acquired Nantong Pacific's wholly-owned income, and settled all the debts of Nantong Pacific with a capital contribution of about 800 million yuan, and obtained the assets of the latter with a valuation of more than 1.3 billion yuan and excellent management team. A functioning project. The acquisition was completely settled in August, and Nantong Pacific held a resumption ceremony and changed its name to “Nantong CIMC Pacific Ocean Engineering Co., Ltd.”, which extended Enric’s natural gas storage and transportation equipment business from its original land-based business to the sea. The business has further improved its natural gas equipment industry chain. Based on the solvency analysis report provided by Nantong Pacific Bankruptcy Administrator, the recoverable amount of CIMC Enric's financial assistance to Nantong Pacific on June 30, 2017 is estimated to be RMB 191 million. Therefore, CIMC Enric has to make additional provision for impairment of approximately RMB 106 million during the reporting period.

In the July acquisition period, the National Development and Reform Commission and the Energy Bureau issued the “Opinions on Accelerating the Use of Natural Gas”. According to this “Opinions”, China’s energy consumption structure will develop in the direction of favorable natural gas. Currently, 4% of domestic natural gas The proportion of consumption is expected to rise to 15% by 2030. Industry participants have said that the development of China's natural gas industry will enter a golden period of development for a long time. In the future, China's natural gas industry has huge space, and many analysts are optimistic about the acquisition of Enric.

In the first half of the year, CIMC's offshore engineering business was seriously affected by the industry's continued downturn, and it was still in a state of loss. However, the oil price rebounded and the offshore market was slowly recovering. The offshore market inquiry and bidding projects are increasing. CIMC Ocean Engineering The sector is also continuing to explore a multi-service integrated marine services industry, such as signing a $250 million smart cage letter of intent with Norway and signing a two floating power boat cooperation agreement with Indonesian companies. In addition, the Blue Whale No. 1, which undertakes the “Strategic Ice” test of the important strategic tasks of the country, has gained global attention and has received lease income for more than three months.

CIMC Logistics Services achieved revenue of approximately 3.75 billion yuan and net profit of 57.34 million yuan, achieving revenue growth. CIMC's heavy-duty truck business completed sales of 4,438 units, a year-on-year increase of 48%, and sales revenue of 1.28 billion, an increase of 49.15%. The airport equipment business achieved sales revenue of 1.18 billion yuan, up 4.65% year-on-year. The CIMC financial business serving the industrial development achieved revenue of approximately 1.15 billion yuan, up 3.02% year-on-year. The real estate business achieved a revenue of about 300 million yuan and a profit of 65 million yuan. In July, CIMC’s introduction of Country Garden as a strategic investor in the real estate business will be more conducive to revitalizing the land resources of CIMC and bringing new impetus to future growth.

New business has a new breakthrough in modular building business to develop the first enterprise standard

CIMC's innovative business outside the 8 major business segments has also made new breakthroughs. Modular buildings have broken through more regions in the international market and officially signed the first US batch project. This is a zero breakthrough in the US market; it is expected to be realized in the second half of the year. The first high-rise building in Australia to sign a large-scale order; completed the successful delivery of a number of Hilton Hamptons hotels such as Aberdeen Airport and Bristol Airport in the UK, becoming one of the mainstream suppliers in the UK hotel market; in the African market, achieved in the first half of the year Signed the contract between the first model and is expected to receive bulk orders in the second half of the year.

In China, the CIMC Steel Structure Integrated Module Building System Regulations were finally reviewed and approved, which is the first domestic enterprise standard for such building systems. At the same time, the self-developed pre-installation project of the building plug-in factory has made breakthrough progress, which is a landmark measure for the development of high-rise buildings, indicating that the factory completion rate of modular buildings will be further improved. In addition, the modular building business has successfully entered the domestic market, with important projects in Shenzhen and Jiangmen, and is expected to be delivered in the second half of the year.

In the second half of the year, the modular construction business will continue to consolidate the existing markets in the UK and Australia, and vigorously promote the expansion of new markets such as Africa and Northern Europe to achieve market diversification. In the domestic market, the national “One Belt and One Road” and the construction of Xiong’an New District have brought new opportunities for CIMC's modular business, and many large-scale projects in China will also be launched. In the technical field, we are working hard to raise the company's regulations to the Chinese industry standards, to standardize the modularization of steel structures, and to promote the standardization process of the domestic modular building business. CIMC also signed a strategic cooperation agreement with China Construction Steel Corporation to leverage its synergies to build a large steel structure integrated construction market.

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