Longyuan Construction issued a notice to increase its investment subsidiary: the company signed an investment agreement with Tianhe Solar Energy, taking Longyuan Mingzhu, a wholly-owned subsidiary of Longyuan Construction, as the core cooperation platform for the integration of photovoltaic construction between the two sides. jointly invest in Longyuan Mingzhu to carry out business. The management shareholding platform of the company, Trina Solar Energy and long Yuanming Construction intends to increase the capital and shares of long Yuanming Building in three phases, with a total capital increase of about 1.45 billion yuan, of which the total capital increase in the first phase is 500 million yuan. The follow-up investment will be paid by the end of 2024 and before the end of 2025 respectively.
BIPV growth tuyere has arrived, and the BIPV market has accelerated its expansion. In March 2022, the Ministry of Housing launched the "14th five-year Plan for Building Energy Saving and Green Building Development Plan", and the newly added building solar photovoltaic installed capacity 50GW has become a clear indicator. At the same time, with BIPV products gradually recognized by the market, its permeability in industrial and commercial plants increases rapidly, the BIPV market is expected to expand rapidly, with growth in the short, medium and long term, and the BIPV market is expected to achieve explosive growth during the 14th five-year Plan period.
The combination of "construction + photovoltaic" enterprises has become an industry trend to seize the opportunity of the BIPV market. The core competitiveness of photovoltaic enterprises lies in BIPV product development. Construction enterprises have rich project resources and construction experience. The combination of construction enterprises and photovoltaic enterprises has become an industry trend. Deep binding cooperation will help to give play to the "fusion" effect, promote the efficiency and performance growth of both partners, and achieve rapid product volume and market opportunities under the background of the rapid expansion of the BIPV industry.
With the photovoltaic leader Trina Solar deep binding, common development of the BIPV market, is expected to thicken the company's performance. The company and Trina Solar jointly invest in Longyuan Mingzhu, which can give full play to their respective advantages and promote the R & D, manufacturing and sales of photovoltaic building integrated products, which is conducive to the company's in-depth development and business expansion in the field of green buildings. Long Yuanming will step into the track of rapid development in building photovoltaic integrated products and prefabricated buildings, which is expected to open up a new growth path for the company's performance and enhance the company's valuation.
Earnings forecast and rating: we have adjusted our profit forecast for the company. It is estimated that the EPS of the company from 2022 to 2024 will be 0.68,0.74,0.83 yuan respectively, and the corresponding PE of the closing price on January 6 will be 9.5,8.7 and 7.8 times respectively, maintaining the "prudent overweight" rating.
Risk tips: macroeconomic downside risks, lower-than-expected development of new business, lower-than-expected landing of existing orders, slow progress of construction projects, and deterioration of cash flow
