China NEC: Overview of Fy21 Revenue & Profit Forecast

Overview of company’s profile:

China Nuclear Engineering & Construction Corp. Ltd. [601611:CH] is a Chinese based industrial company that engages mainly in the provision of different kinds of nuclear projects construction services. Some of the business activities of the company include the construction of nuclear projects, national defense projects, nuclear power plants, and other industries and civil projects. The company also engages in other businesses such as the offering of nuclear energy application and nuclear engineering technology research services. The company conducts its business within the Chinese domestic regions and overseas with huge exportation rate. China NEC was formed and issued a business license in December 2010 while its headquarter is situated at Beijing, China. The executive head of the company is Baozhi Chen with up to 37,216 other employees currently working for the company.

Overview of previous annual financial performances:

The financial performance reports of the company for the last six years shows consistent and steady growth in most of the major financial indicators of each of the reports. The steady growths are vastly attributed to the increasing demand of nuclear projects. Another factor that has also been fostering the improvement in the company’s financial performances is the steady increment in the prices attached to the construction of the nuclear projects. The management of the company released the financial performances report of the company for the Fy20 period targeting significant improvement in most of the major financial indicators. According to the financial data that was posted by reuter, some of the major financial indicators performed as follows;

Total income: The financial result of the company for the Fy20 period reveals that the total income generated from business increased significantly to CNY72.81 billion which shows that it increased significantly by 12.45% year-on-year when compared and analyzed from the CNY63.74 billion that was reported in the previous year’s financial result.

Net profit: The financial data that was showcased by reuters revealed that the net profit during that period improved significantly to CNY6.96 billion which shows that it increased significantly by 9.77% year-on-year when compared and analyzed from the CNY6.28 billion that was reported in the previous year’s financial result. One of the strong factors that limit the amount of money raised as profit by the company is steady growth of expenses incurred during business activities.

Debt rate: The financial report of the Fy20 period highlights significant growth in the total debt accumulated by the company as it increased to CNY49.46 billion which shows that it increased significantly by 13.74% year-on-year when compared and analyzed from the CNY42.66 billion that was reported in the previous year’s financial result.

Overview of Fy21 Revenue and Profit Forecast:

The management of the company released the financial expectation report targeting the revenue and profit that will be generated from business in Fy21 period. According to the forecast, the revenue and profit is expected to amount to CNY78.93 billion and CNY1.69 billion respectively in Fy21 period.

Sources:

https://markets.businessinsider.com/stocks/china_nuclear_engineering_a-stock

https://www.marketscreener.com/quote/stock/CHINA-NUCLEAR-ENGINEERING-30049778/company/

https://www.bloomberg.com/profile/company/601611:CH

https://www.reuters.com/companies/601611.SS/financials/income-statement-annual