Chapter 1564 [Soon to be listed on SGX: CNNC Shipbuilding]

A super giant like a nuclear power ship, with a displacement of more than 170,000 tons and an annual production capacity of 20 ships, can only be called crazy and incredible in the eyes of foreign counterparts.

But this is the industrial manufacturing strength of the Eastern Power. The Eastern Power accounts for 6 of the world's top 10 shipyards. It is also a sure thing that the Nuclear Power Ship Group will enter the world's top 10 shipyards, that is, 7 are in China.

There are 1,095 shipbuilding industrial enterprises above the scale of the Eastern Power. The order volume of Dongda's ship companies accounts for more than 75% of the total share of the global shipbuilding industry, and the shipbuilding capacity is 67 times that of Amag.

That's right, it is 67 times that of Amag. This is the current industrial manufacturing strength of Dongda.

If there is no such industrial foundation, Fang Hong would not be able to say that 20 nuclear power ships will be launched in a year. The other 6 shipyards that can enter the top 10 shipyards in the world are all capable of manufacturing nuclear power ships, and there is no problem with OEM.

In fact, the shipbuilding industry is now extremely competitive. Think about the profit margin of 20% to 30% in the past, but now it is only 2%, 3%, and 5%. It can be seen how competitive it is.

Fang Hong thought for a moment and said in a deep voice: "When the time comes, throw out the orders and let these large shipbuilders participate in the OEM bidding, and give them a 5% OEM profit for each ship."

Needless to say, in the current situation of the shipbuilding industry, if a 5% OEM profit is given, those shipbuilders will have to rush to OEM, because the profit of the current shipbuilding orders generally does not reach 5%, and even 2% is accepted.

Fang Hong added: "In order to prevent them from being too competitive, the 5% OEM profit cannot be reduced. Nuclear power ships cannot be competitive in price, but only in OEM quality and delivery efficiency."

Tian Jiayi lowered his eyebrows and said nothing, but his hands were not idle, silently memorizing Fang Hong's instructions.

If the OEM profit is not fixed, then the shipbuilders participating in the OEM bidding will definitely quote a 4% profit in order to win the bid.

You quote 4%, he may quote 3% OEM profit.

No matter who wins the bid, they will give 5% OEM profit, so the bidding shipbuilders will definitely open the book in other aspects, either the OEM quality or the OEM ship delivery efficiency, etc., which is what Fang Hong hopes to see.

With an efficiency of launching 20 ships a year, it will only take 6 years to deliver all 122 nuclear power ships. By 2027, all of them will be launched, and the last batch will be able to operate for about 23 to 28 years before welcoming the arrival of the space solar power station, then there will be no problem.

For the Nuclear Power Ship Group Company, giving up 5% of the profit is completely acceptable. If it sticks to this 5% profit, it can only deliver 30 nuclear power ships in six years, which means that the profit will be reduced by more than 65%.

Because the most profitable part of nuclear power ships is not the profit of shipbuilding itself, but the subsequent maintenance and repair, which is guaranteed regardless of the weather. The more ships launched, the more money can be made from this part. The 65% reduction in profits is reflected in the logistics maintenance and repair part.

The maintenance costs of 30 nuclear power ships and 122 ships are several times the profit. Even elementary school students know how to calculate this account.

Finally, after the layout of this part was done, Fang Hong moved on to the SGX market: "After the close of Friday, July 3, the draft of the SGX market adjustment trading mechanism will be released."

Tian Jiayi nodded: "Okay."

The last major reform of the SGX was the new delisting rules last year, and this year's adjustment of the trading mechanism is another major reform. The development of the SGX is gradual and has a clear strategic plan.

This adjustment will issue a draft opinion in July to give the market an expectation, and the specific implementation will be determined to be implemented around October.

After the new rules are implemented, the SGX market will be adjusted from the current institutional T+3 and individual small and medium-sized investors T+1 trading mechanism to institutional T+1 and individual small and medium-sized investors single T+0 trading mechanism.

The market response was very good before the rumor was released, and it was generally supported, especially small and medium-sized investors, who had no reason not to support it, and hoped that the rumor was not just a rumor, and hoped that it would really come true.

Fang Hong then asked: "In addition, how is the listing of the Nuclear Power Ship Group Company on the SGX market?"

Hearing this, Tian Jiayi replied: "All preparations have been completed, and it will be listed on the SGX market on June 9, which is next Tuesday."

The listing of the Nuclear Power Ship Group Company has been prepared for more than three months, and the listing was promoted in February.

The stock trading code after listing on the SGX is "681689", and the stock name is "China Nuclear Shipbuilding". Now the name or code of this stock can be searched on the SGX market, but it has not yet been listed.

CNNC Shipbuilding has a total share capital of 33 billion shares, an issue market value of 136.5 billion yuan, an initial public offering of 36.855 billion yuan, and an issue price of 4.13 yuan per share.

The initial public offering is the largest in the A-share market this year and the largest fundraising scale in the SGX market in the past two years. It has also entered the top ten fundraising scales since the opening of the SGX market.

The company was jointly established by Qunxing Group and Jiangnan Shipyard. It was previously in a loss-making state, but this year, with the launch of nuclear power ships and 25,000TEU ultra-large container ships, it will turn losses into profits.

The current valuation is based on next year's production capacity, and the corresponding net profit is expected to exceed 4.55 billion yuan, corresponding to a price-earnings ratio of about 30 times.

Given a valuation of 136.5 billion, it directly becomes the first stock in the market value of marine equipment. The Shenwan industry to which China Nuclear Shipbuilding belongs is defense and military industry/marine equipment. Currently, the first stock in the industry sector is Zhongguo Heavy Industry with a market value of 74.9 billion, followed by Zhongguo Shipbuilding with 25 billion, and below that is Zhongchuan Defense with 13.7 billion.

Once China Nuclear Shipbuilding lands on the SGX market, it will be directly airborne to the top spot in the market value of marine equipment without any suspense. After all, the profit margin is there, and this company is definitely a trillion-dollar company.

If based on a net profit of 4.5 billion, there is nothing wrong with giving a valuation of 136.5 billion now.

However, the net profit scale next year will definitely be more than 4.5 billion. In order to increase the production capacity of nuclear power ships to 20 ships launched each year, 15 of them will be outsourced. Although 5% of the profit will be distributed to the outsourced shipyard, the total net profit margin of CNNC Shipbuilding can still be maintained at 20%.

If 20 nuclear power ships are launched in a year, the net profit will not be 4.55 billion, but 32.2 billion. How much money can be made each year can be calculated in advance.

Even if calculated at a 30 times price-earnings ratio, the corresponding market value is 966 billion, which is a trillion market value after rounding off.

Moreover, this 32.2 billion net profit is only calculated for the nuclear power ship business. CNNC Shipbuilding also has a nuclear-powered container ship business that has not been calculated. In addition, as a galaxy enterprise, the market will give an additional higher premium rate.

Assuming that the market eventually gives a 35 times P/E ratio, the corresponding market value of the net profit scale of the nuclear power ship business alone is 1.12 trillion yuan. Moreover, at this time point, when liquidity is overflowing, money is being printed crazily. The premium rate of core assets can rise further. If the bubble is blown up to 45 times the P/E ratio, the corresponding market value is about 1.45 trillion yuan.

Fang Hong has just made the decision to build 15 nuclear power ships, and the market has no idea about it.

Fang Hong did not plan to release this heavyweight positive news so quickly, including setting the issuance market value at 136.5 billion yuan, all for the launch of a big market next month, that is, in July, so that the New Certificate 50 Index will break through 6794 points in one go and reach a new historical high.

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