Events:
Hangxiao Steel structure released its semi-annual report for 2022: in the first half of 2022, the company realized operating income of 4.595 billion yuan, an increase of 5.81% over the same period last year, and a net profit of 187 million yuan belonging to shareholders of listed companies, an increase of 3.82% over the same period last year.
Main points of investment:
The revenue grows steadily, and the high prosperity of the steel structure plate continues. In the first half of 2022, East China, where the company is located, was greatly affected, while the performance of real estate was low and the confidence of private investment was insufficient.
During the reporting period, the company's revenue grew against the trend, achieving a total operating income of 4.595 billion yuan, an increase of 5.81% over the same period last year, and a total profit of 101 million yuan, a decline over the same period last year. The company received 95 million yuan in income tax relief on May 11, which was finally included in the non-recurring profits and losses of the current period. during the reporting period, the net profit belonging to shareholders of listed companies was 187 million yuan, an increase of 3.82 percent over the same period last year. During the reporting period, the company signed 8.082 billion yuan for new projects, of which the steel structure business has won the bid and has not yet signed contracts totaling about 1.971 billion yuan, and the high prosperity of the steel structure business is expected to continue.
The green construction industry chain is gradually improved, and the BIPV business is ready to start. After more than 20 years of development, the company has gradually developed into a diversified enterprise group with the whole industry chain of "R & D, design, manufacturing, installation, building materials, construction, supply chain, industrial big data platform, BIPV photovoltaic building integration". The strategic layout of green building has been initially realized.
The company laid out BIPV business earlier and successfully controlled Hete Optoelectronics in July 2021. In the same year, the first annual output of 1 million square meters of BIPV intelligent production line was officially put into production, and multi-order fulfillment supply was quickly completed within one month. In April 2022, the company's shareholding proportion of Hete Optoelectronics increased from 51% to 65%, further promoting the deep integration of the BIPV industry chain. Hete Optoelectronics is a technology enterprise specializing in photovoltaic technology research and BIPV "building materials" product application, product design and power generation performance are in the forefront of the industry. By the end of this report, the newly signed contract value of Hete Optoelectronics is 37.62 million yuan, which is expected to continue to grow in the future. At the same time, the company buys back 8.46 million shares, accounting for 0.36% of the company's total share capital, which is used in Hete Optoelectronics's equity incentive program and awarded to Hete Optoelectronics core employees in stages, and the company's operating efficiency is expected to be improved.
Profit forecast and investment rating: the company's revenue growth in the first half of 2022 is steady, the steel structure boom is expected to continue, the BIPV business with Hete Optoelectronics as the main body is ready, and the equity incentives for core employees are carried out smoothly, which is expected to continue to improve operational efficiency. We expect the company to achieve net profit of 4.7,5.78 and 699 million yuan from 2022 to 2024, corresponding to PE of 26.24,21.36,17.62 times. Cover for the first time, giving the company a "buy" rating.
Risk hints: production costs continue to rise; the recovery of the real estate industry chain is not as expected; the construction of infrastructure projects is not as expected; the increase in BIPV penetration is not as expected; and the epidemic repeatedly affects the economy.