Main points of investment
Strategic Cooperation Framework Agreement signed between the company and the people's Government of Xuanzhou District, Xuancheng City, to invest in the construction of 10GW high-efficiency photovoltaic cell module project, 10GW photovoltaic cell wafer project and 900MW centralized photovoltaic power station project in Xuanzhou District.
Hongrun Construction signed Investment Agreement announcement: the company signed the "5GW High-efficiency Photovoltaic Module Project Investment Agreement" with the Management Committee of Anhui Xuancheng High-tech Zone, with a total planned investment of about 1 billion yuan. Strive to go through the entry procedures for the project before April 7, 2023.
Hongrun Construction signed Investment Agreement announcement: the company signed the "300MW centralized Photovoltaic Power Station Project Investment and Development Agreement" with the people's Government of Xuanzhou District, Xuancheng City, with a total investment of about 1.2 billion yuan. In principle, the target resource allocation declaration for this 300MW centralized photovoltaic power station will be completed in 2023.
The company actively plans strategic cooperation to transform new energy, and photovoltaic power station investment accelerates development and actively plans strategic cooperation, demonstrating the company's confidence and determination in transforming new energy. The signing of the Strategic Cooperation Framework Agreement with the people's Government of Xuanzhou District demonstrates the company's leadership's confidence and determination in the transformation of the company's dual main business of "construction + new energy".
The company has a good operation of the photovoltaic power station on hand, and the investment in the power station is accelerated, and the investment in the photovoltaic power station is expected to exceed 1GW in the next 3-5 years. At present, the company is in normal operation of 80 MW photovoltaic grid-connected power station in Qinghai. The Strategic Agreement intends to invest in the construction of 900MW centralized photovoltaic power station project, in which 300MW expects to complete the target resource allocation declaration in 2023, accelerate the landing of the company's power station investment and enhance the company's holding photovoltaic installed capacity, so as to provide guarantee for the company's sustainable development.
Photovoltaic "14th five-year Plan" installation plan is clear, the company intends to cut into photovoltaic modules, photovoltaic battery races, conducive to enhance the company's profitability, broaden new energy business, achieve transformation and upgrading of photovoltaic installed market to accelerate capacity expansion, photovoltaic module demand is strong. According to grass-roots photovoltaic statistics, 29 provinces have disclosed that the new planned photovoltaic capacity exceeds 390GW, and the compound growth rate during the 14th five-year Plan period is about 21%. As an important part of photovoltaic installation, photovoltaic modules and batteries are expected to drive the prosperity of the photovoltaic module and battery industry to continue to rise with the rapid growth of the installed scale.
The company plans to cut into the photovoltaic module and photovoltaic battery race track, which will help to enhance the company's profitability and broaden the new energy business. The company intends to invest in the construction of 10GW high-efficiency photovoltaic cell module project and 10GW photovoltaic battery chip project, and cut into the photovoltaic module and photovoltaic battery race track, which will help the company to seize the development opportunity to achieve rapid growth of the company's new energy business scale and enhance the company's profitability.
Earnings Forecast and rating: we adjust our profit forecast for the company. It is estimated that the EPS of the company from 2022 to 2024 will be 0.34,0.39,0.45 yuan respectively, and the corresponding PE of the closing price on March 7 will be 17.5,15.1 and 13.2 times respectively, maintaining the "overweight" rating.
Risk hints: macroeconomic downside risks, lower-than-expected investment in infrastructure and municipal rail transit, deteriorating cash flow, and lower-than-expected risks in new business development.