China Engineering International (002051) Annual Report 2018 Review: International Engineering Leadership Achieves Ushering Inflection

China Engineering International (002051) Annual Report 2018 Review: International Engineering Leadership Achieves Ushering Inflection Point

The 2018 annual report evaluated the international engineering leader, and its performance achievement greeted the inflection point. The performance was less than expected. Overseas orders were dragged down by the market as a whole.

5 billion, down 6 previously.

95%; net profit attributable to mothers12.

00 billion, a previous decrease of 19.

12%, the performance is gradually tentatively preliminary. In 2018, the international economic aggregate is complex and economic momentum has declined, so the implementation of some overseas engineering projects has lagged.

Suffered by the slump in the overseas market, the annual overseas new year orders.

$ 700 million, a decrease of 8 per year.


  The benefit rate increased during the period when the exchange rate increased, and the cash flow improved significantly. The company’s ROE in 2018 was 13.

85%, a decline of 5 per year.

39 points.

The gross profit margin is 19.

28%, a decline of 6 per year.

87pct, the decrease in gross profit margin was mainly due to the exception of settlement items during the same period in 2017; the net profit margin was 11.

61%, a decrease of 0 per year.

87 points.

As the report resulted in exchange gains offsetting financial expenses due to exchange rate changes, the expense ratio rose during the period.

94 points to 5.

55%; of which the management expense rate is increased by 0.

43 points to 3.

81%, the financial expense ratio fell by 5.

55 points to 1.

46%, the sales expense ratio increased by 0.

18 points to 3.


Total asset turnover is 0.

55 times, down 5 each year.

17%, accounts receivable turnover investment 2.

01 times, down 6 every year.


Asset and liability accounting 48.

51%, down 4 each year.

82pct, which has been declining for 5 consecutive years since 2013, and the ability to repay debt has improved significantly.

Initial realization of operating net cash flow 28.

34 billion, with operating net cash flow / operating income of 27.

92%, an increase of 50 a year.

74 points.

  In the fourth quarter of 2018, the fourth quarter, the third quarter and the fourth quarter completed revenue.6.6 billion, 24.

19 billion, 33.

9.9 billion, 22.

6.6 billion, an increase of 37 in ten years.

96%, 21.

57%, 23.

80%, -51.

53%; realized net profit2.

18 billion, 3.

6.8 billion, 3.

53 billion, 2.

6.1 billion, an increase of 10 in ten years.

16%, 24.

16%, -1.

61%, -58.


  The company’s performance improved in the fourth quarter.

  Benefiting from the integration of state-owned enterprises, the “Belt and Road” policy is expected to usher in a performance inflection point report. The company purchased from the shareholder SINOMACH China Zhongyuan, which has professional advantages in the fields of medical building design, and further expanded new businesses.

The 2nd “Belt and Road” summit has been held 杭州桑拿网 for 4 months. Recently, departments and local governments have promulgated intensively the policies supporting “Belt and Road”. The company has promoted the leading policy of “Belt and Road”, and the overseas market has gradually recovered.Performance has ushered in an inflection point.

  Profit forecast and investment advice: The company’s EPS for 19-21 is expected to be 1.



96 yuan, PE is 11.



2 times.

Maintain “Buy” rating.

  Risk reminders: bad debts of accounts receivable, changes in exchange rates, and weaker policies than expected.