Incidents:
The company published its semi-annual report for 2023. 2023H1 achieved operating income of 1.96 billion yuan, an increase of 19.93% over the previous year; realized net profit of 60 million yuan, a year-on-year decrease of 12.14%.
Comment:
Deepen the “dual brand” strategy and make every effort to transform into new energy sources. 2023 is the company's “year of operational capacity improvement”. The company continues to promote and deepen the “dual brand” strategy, making every effort to transform from a construction enterprise to a new energy enterprise. 2023Q1/2023Q2 The company achieved operating income of 985 million yuan/978 million yuan and net profit of 23 million yuan/40 million yuan; 2023H1's credit impairment losses surpassed 49 million yuan, a significant improvement over the same period last year. 2023H1 added 108 successful projects, amounting to 2,477 billion yuan, an increase of 7.0% over the previous year; among them, 55 building decoration projects, 15 environmental protection projects, and 38 photovoltaic projects.
Continuing to give full play to the advantages of the dual brand, the BIPV business is developing rapidly. As policies such as the “General Code for Building Energy Conservation and Renewable Energy Utilization” continue to work, we judge that the BIPV market is expected to grow more than tenfold from 2022 to 2025, to reach a scale of about 75 billion yuan, and the company is expected to fully benefit. In April 2023, the company and Longji released a new generation of BIPV product, Rongding 3.0 in Shanghai. Based on the standard size of M10 silicon wafers in the industry, the company invented an optimally sized double glass frameless component. Currently, this product has been successfully used in the Green Boao BIPV project. 2023H1 continued to leverage the advantages of the Centre-Longji dual brand and won bids for Quzhou Jiedian 70MW integrated energy projects; 2023H1 achieved BIPV business revenue of 406 million yuan, an increase of 173% over the previous year.
The competitiveness of the main metal enclosure industry is stable. The building metal enclosure industry falls under the category of prefabricated steel structures for prefabricated buildings and is an important component of green buildings. The company provides engineering contracting services for the entire construction metal enclosure process, from engineering consulting to installation and construction. The total project performance exceeds 2,500, and the total construction area exceeds 200 million square meters. 2023H1 continues to maintain strong competitiveness in the middle and high-end metal enclosure industry, winning bids for projects such as Longji in Ordos and Geeliningguo.
Maintain the “increase in holdings” rating. Considering the company's shift of focus to operating capacity and comprehensive transformation to new energy, the BIPV business profit contribution may be mainly reflected in 2025 and after. The profit forecast is lowered. The EPS from 2023 to 2025 is expected to be 0.19/0.21/0.23 yuan, and the corresponding PE is 107.39/97.21/87.75 times.
Risk warning: downstream demand falls short of expectations, market competition risk, company performance falls short of expectations