CITIC Haizhi (000099): CNOOC market demand expands and supplements missed earnings due to missed impact

CITIC Haizhi (000099): CNOOC market demand expands and supplements missed earnings due to missed impact

Predicted annual profit growth of 105-120% in 2019H1 CITIC Haizhi announces 2019 half-year results forecast: 杭州桑拿 Net profit attributable to mothers is estimated to be 87,768-94.09 million yuan, an increase of 105-120%.

Corresponds to a profit of 0.

14 yuan / share -0.

16 yuan / share.

Key points of attention Under the influence of compensation, the first half of the first half of the year increased earnings significantly.

The company expects a profit of 88,768-94.09 million yuan in the first half of 2019, an annual increase of 105% -120%.

Preliminary: 1) In June, the company received 2,146 grants for general aviation development in 2019.

30 million, the compensation is expected to be 9 months last year; 2) the expansion of the market demand for restructuring CNOOC, the company’s offshore oil business contract machine number, the contract price increased compared to the same period last year.

Implying a one-time factor, earnings in the second quarter were still better than expected.

After calculation, excluding the impact of the General Aviation Development Fund, the company’s second-quarter net profit increased by about 77% -100%. We estimate that it is mainly related to the company’s strong offshore oil business demand.

The impact of replacing the General Aviation Development Fund and the one-off gains from the disposal of commercial housing in the first quarter, the net profit in the first half of the year increased by about 55%?
70%, slightly more than we expected.

We expect the supplementary confirmation time to have a significant impact on the third quarter earnings.

The company has received two subsidies for navigation development funds in each of the past four years. The two last year were confirmed in the third quarter (19.01 million yuan) and the fourth quarter (23.71 million yuan)., We expect the company’s third quarter results will be affected by the supplemental error period.

Estimates and recommendations The company currently sustainably corresponds to 2019/202032.


8 times P / E.

Considering that the company has not released a full interim report, we temporarily maintain our 2019/2020 profit forecast1.


530,000 yuan, maintaining a target price of RMB 7.

7 yuan and neutral rating.

The target price corresponds to 35/31 times P / E in 2019/2020, which is 9 compared with current expectations.

8% upside.

Risks Offshore oil market demand was less than expected; RMB depreciated significantly against the US dollar; related government subsidies were cancelled.