The company is the leader of the metal enclosure industry, ranking first among the top ten enterprises in the construction of metal roofing for many years, and has won the new "Little Giant" specialized in the industry. The company joins Longji in the forward-looking layout of BIPV business, and it is expected that BIPV penetration will increase significantly in the future, and the performance is expected to increase significantly.
Focus on the field of metal enclosure and actively develop other main businesses. Founded in 2001, the company mainly has three business sectors: building metal enclosure system, ecological management and building photovoltaic integration (BIPV). Metal enclosure system is the main source of income for the company. While focusing on the metal enclosure business, the company strives to develop other business lines. In 2021, Longji shares acquired shares in the company at a premium, signed a strategic cooperation agreement, and jointly entered the BIPV market.
Metal enclosure industry leader, specializing in the new "Little Giant". There are relatively few professional companies with independent innovation technology and products and certain comprehensive strength in the construction metal enclosure industry, large-scale projects are mostly undertaken by strong enterprises, and the industry concentration is high in the middle and high-end market. The company is a leader in the industry, with high market share and great brand influence, and has been awarded the license of "Little Giant" in Beijing in 2020. The company adheres to the technology-leading strategy, which makes it have excellent R & D capability and strong competitiveness. The company has advanced roof construction technology and on-site production technology, and a rich product line enables it to focus on the high-end metal enclosure market, covering industrial buildings and public buildings at the same time.
BIPV has a broad market space, and Longji's performance will take off hand in hand. High carbon emissions in China's construction field urgently need to be improved. Building photovoltaic has been vigorously developed under the policy warm wind, and the market prospect is broad. Among them, building photovoltaic integration (BIPV) has many advantages, and the permeability is expected to increase significantly. It is expected that by 2025, the new installation of BIPV roofs in China will reach 11.90 GW BIPV with a 5-year compound growth rate of 75.79%. The penetration rate of BIPV is expected to increase significantly. The company joins hands with Longji to make a strategic layout of BIPV, which has more obvious advantages than other market participants. It is expected that the BIPV business will significantly increase the company's performance.
Investment suggestion: the core advantages of the company's metal enclosure business are outstanding, and the BIPV industry has a broad development. The company joins Longji to actively distribute the BIPV market, and the BIPV business is expected to expand significantly in 2022. Short-term corporate performance is affected by the epidemic and individual customer liquidity risk, phased pressure, with the company's strategic optimization, cash flow and profitability are expected to gradually pick up. It is estimated that the company's EPS will be 0.06,0.61,1.06 yuan per share in 2021-2023, and the company will be given a PEG of 0.97 times, corresponding to a target price of about 44.23 yuan per share, covering the "prudent recommendation-A" rating for the first time.
Risk tips: construction photovoltaic industry policy is not as strong as expected, BIPV business development is not as expected, cooperation with Longji is not as expected, receivable payback risk, the continuing impact of the epidemic, the risk of short-term performance fluctuations.
