Event: on December 2, the company announced that the company and Zhongshan Ruike New Energy Co., Ltd. recently signed the "Strategic Cooperation Agreement between Zhongshan Ruike New Energy Co., Ltd. And Shenzhen Cosco Construction Group Co., Ltd." will jointly expand photovoltaic curtain wall and domestic roof photovoltaic power generation projects.

Accelerate the expansion of photovoltaic curtain wall and domestic roof photovoltaic project business, under the background of "double carbon", there is broad space in the future and is expected to achieve rapid growth: this cooperation object is Zhongshan Ruike New Energy Co., Ltd. mainly engaged in new energy power generation components research and development, production, sales, installation (excluding power facilities installation project), technical consultation and after-sales service. The cooperation company will give priority to the cadmium telluride photovoltaic modules manufactured by Ruike New Energy for the projects developed, invested and built by itself, and in the later project bidding, the cadmium telluride photovoltaic modules of Ruike New Energy will be selected as the selected products; and the photoelectric curtain wall company and distributed power station project developed by Ruike New Energy will give priority to selecting the company as the EPC construction unit. A large part of social energy consumption is building energy consumption, and building energy saving is also the main direction of the whole energy saving and emission reduction policy. Green buildings and green building materials are all new building applications driven by this goal. The close combination of photovoltaic and architecture is not only an application to change the form of buildings, but also the trend of building development in the future. This cooperation will help the company to establish a long-term and stable strategic partnership with Ruike New Energy, integrate the superior resources of both sides to achieve good economic benefits, achieve win-win cooperation, and work together in the new energy and renewable energy industries to promote the implementation of photovoltaic building curtain walls and distributed photovoltaic power generation projects, and expand the business of photovoltaic curtain walls and domestic roofing photovoltaic projects.

Under the policy background of "carbon neutralization" and green building, the integration of photovoltaic buildings will bring new growth momentum to the construction industry: on June 1, 2021, the State Administration and the National Development and Reform Commission jointly issued the "notice on the work Plan for Energy Conservation of Public institutions during the 14th five-year Plan", which proposed that the State Administration issued a document requiring the office buildings of state organs to reduce energy consumption through measures such as the installation of distributed photovoltaic. We will promote the completion of conservation-oriented organs at the same level of central government organs by the end of June 2021, and strive to meet the creation requirements for more than 80% of organs at and above the county level by the end of 2025. On June 20, the Comprehensive Department of the National Energy Administration formally issued the notice on submitting the pilot scheme of roof distributed photovoltaic development for the whole county (city and district) to organize and carry out the pilot work of roof distributed photovoltaic development for the whole county (city and district) throughout the country. It is also proposed that the counties that apply for pilot projects should meet the following requirements: the proportion of photovoltaic power generation that can be installed in the total roof area of party and government organs is not less than 50%, and that of schools, hospitals, village committees and other public buildings is not less than 40%. The proportion of photovoltaic power generation that can be installed in the total roof area of industrial and commercial factories is not less than 30%; and the proportion of photovoltaic power generation that can be installed in the total roof area of rural residents is not less than 20%. The company seizes the good development opportunity of the industry to expand to the photovoltaic curtain wall and domestic roof photovoltaic power generation business ahead of time, establishing a first-mover advantage, and is expected to directly benefit from the development of the industry in the future.

The assembly type is the focus of future development, and the industry has great potential. The company focuses on exploring the assembly type, and is expected to realize industrial upgrading in the future. At present, the construction industry is ushering in a new period of technological change. The assembled building adopts systematic design, modular production and construction. It has modern functions such as energy saving and consumption reduction, closed sound insulation, fire prevention and earthquake resistance, leading the industry to change from extensive to intensive, and gradually to the modernization of the construction industry. Prefabricated building is not only the focus of the development of the modernization of the construction industry, but also the mode of production of the construction industry in the future. Under the guidance of "science and technology promotion decoration", the company increases investment in scientific and technological innovation research and development, starts with new materials, new processes, new technologies and new equipment, and transforms R & D achievements into independent intellectual property rights to form and improve independent intellectual property rights system. By strengthening the construction of assembly R & D technical team, system and assembly production base, and strengthening the complementary advantages with enterprises and suppliers, a series of major breakthroughs have been made in the field of construction assembly. And promote the development of assembly decoration to modular design, standardized production, batch production and integrated installation with the thinking of architectural industrialization, and achieve substantial results in the field of architectural assembly decoration.

Investment suggestion: in view of the fact that the company relies on the main business of architectural decoration and cuts into the field of property management, the factors such as the acceleration of the transformation of old urban residential areas and the steady progress of urbanization in the industry are more beneficial to the leading enterprises in the industry. And the company uses blockchain technology to apply the supply chain to solve the pain point of poor cash flow in the industry, accelerate the upgrading of construction industrialization, focus on exploring assembly, and is expected to achieve industrial upgrading and further strengthen the company's comprehensive competitiveness in the future. The company's future profit is expected to maintain rapid growth, so continue to give "buy" rating, 2021-2023 net profit is expected to be 331 million yuan, 431 million yuan, 536 million yuan, EPS is 0.46,0.60,0.74 yuan, corresponding to PE is 11 times, 9 times, 7 times.

Risk tips: the risk of macroeconomic fluctuations; the risk of policy regulation and control of the real estate industry; the risk of intensified market competition; the risk of the implementation of engineering projects; the risk of technological transformation and upgrading and the opening up of emerging markets; the risk of rising prices of raw materials; the risk of project quality and safety construction.