Events:

On September 15, Shijing Science and Technology announced that the consortium composed of the company and China Railway fourth Bureau Group Co., Ltd. (the leader of the consortium), Taian High-tech Wenhe Construction Engineering Co., Ltd., and Sichuan Hongji Architectural Design Co., Ltd. won the bid for the design and construction general contract project of Taian High-tech Zone Rural Revitalization Industrial Park, with a winning bid amount of 1.18 billion yuan.

Main points of investment:

The part in charge of the company is about 7.08-826 million yuan. The consortium member units are divided according to the agreed workload, and the company is mainly responsible for the procurement and installation of production equipment and the mechanical and electrical installation related to the installation of production equipment, accounting for about 60% of the value of the whole project, or about 7.08-826 million yuan.

In 2023, the amount of winning bids increased by more than 5 billion yuan. As of September 15, 2023, the company has announced that the total amount of new winning projects in that year is about 5.422 billion yuan (including consortium projects). The winning bid further reflects the company's competitiveness in large-scale industrial comprehensive supporting projects, and the smooth implementation of the project will help to enhance the business capacity of the company's supporting equipment integration.

Earnings forecast and investment rating take into account that the company has strong order-taking ability and sufficient on-hand orders. we expect the company's 2023, 2024, 2025 net profit to be 3.19, 1056, respectively, 1.396 billion yuan, corresponding to PE, which is twice that of 21-6-5, maintaining the "buy" rating.

The risk indicates the risk of capital shortage; the project construction progress is not as expected; the competition in the photovoltaic field aggravates the risk; the performance growth rate is lower than expected; the photovoltaic capacity growth rate is lower than expected; accounts receivable risk.