Sifangda: enjoy the big cycle of oil service recovery
2020-09-17 10:14:34
Abstract Recently, Sifangda released an annual report saying that in 2016, the company achieved operating income of 167 million yuan, a decrease of 17.90% over the same period of the previous year; net profit of mothers was 29.9512 million yuan, a year-on-year decrease of 36.01%; EPS was 0.0618 yuan, a year-on-year decrease. .
Recently, Sifangda released an annual report saying that in 2016, the company achieved operating income of 167 million yuan, a decrease of 17.90% over the same period of last year; net profit of mothers was 29.9512 million yuan, a year-on-year decrease of 36.01%; EPS was 0.0618 yuan, a year-on-year decrease of 36.35%. At the same time, the company also disclosed the first quarter performance forecast for 2017. The company expects the company's revenue to increase by 100~150% in the first quarter of 2017, and the net profit of the mother will increase by 155%~185% to 13.927.79 million~14.861 million yuan. .
In 2016, the low crude oil price affected the company's performance. The company's composite film is mainly used in oil, mining, wire drawing and other fields, and oil is particularly high. In 2016, the company's operating income decreased by 16.92% compared with the same period of last year, mainly due to fluctuations in international crude oil prices. The sales revenue and net profit of polycrystalline diamond compacts for oil/natural gas drilling decreased year-on-year.
In 2017, oil prices bottomed out, rig activity increased, and demand for petroleum composites rebounded.
Petroleum composite sheets are mainly used for oil drilling, and their demand is closely related to rig activity and oil price. In 2017, OPEC cut production, oil prices gradually recovered, while the cost of shale oil in North America decreased significantly, the economy improved, and the activity of rigs in North America and the world recovered. On March 24, the number of active rigs in North America increased by 74% year-on-year. In February, global rig activity increased by 15% year-on-year. In this context, we expect the market size of petroleum composites to rise from approximately US$400 million in 2016 to nearly US$700 million in 2018, with an annual growth rate of over 30%.
The company's market development has been fruitful and the foreign market has steadily advanced. The oil composite film market is basically occupied by overseas companies, and the market share of Sifangda and other enterprises is only single digit.
With the improvement of the company's product performance and the emergence of cost-effective advantages, the company's products have been recognized by the oil service drill bit enterprises, and the market share is expected to increase.
At the same time, Zhengzhou Huayuan, which has dragged down the company's profits in recent years, has improved its operations. In 2016, revenues resumed growth and losses were reduced. It is expected that the company's negative impact is coming to an end.
Earnings Forecast and Investment Proposal: We expect the company's petroleum composite sheet business to pick up and maintain a solid position in the wire drawing mold market. The sales scale in the PCB/PCBN tool market will continue to expand and the company's operating performance will increase rapidly. The company's performance in 2017 and 2018 was 77 million yuan and 103 million, respectively, with growth rates of 161% and 34% respectively. At the current stock price level, the company's PE levels are 49 and 37 times, respectively. We are optimistic about the prospects for the recovery of global oil service and petroleum composites, and the company's market position will increase rapidly. The company's performance will also provide more impetus for the company's performance. To this end, we give the company a "buy" rating.
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