Committed to building a first-class equipment operation service provider, IPO helps start new growth
The company is currently the largest equipment operation service provider in China. According to the company announcement, the market share of equipment retention of the company's new support system / new mold base system / aerial operation platform in the past 22 years is 5.0%, 3.2% and 30.6%, respectively. As of 23H1, there are 419 service outlets with diversified equipment and strong service capabilities. We predict that the 23-25 year return net profit of the company will be 9.6 pound 1.25 billion yuan, corresponding to 0.39 billion yuan for EPS 0.30 pound. Comparable companies Bloomberg and Wind have an expected average of 23 years 15.6xPE. We believe that the company is the largest equipment operation service provider in China. At the same time, we actively expand the light asset model and digital empowerment, and are expected to accelerate the expansion of products in the medium and long term. The company is approved to give 23-year 16xPE with a target price of HK $5.22, covering the "buy" rating for the first time.
Professional foundation building, new urbanization, aging population and diversified scenes bring new momentum for development.
The domestic construction equipment leasing industry started relatively late, there are a large number of small and medium-sized enterprises, the overall market competition pattern is scattered, and the market needs to be integrated. We believe that with the deepening of urbanization and the refinement of construction equipment management, China's construction equipment leasing industry will usher in rapid development. According to Frost Sullivan's forecast, the market space of China's equipment operation industry is expected to reach 11% in 23-27. We expect that with the successful completion of the company's IPO in May this year, Hongxin Jianfa will use the funds raised to sink domestic service channels and overseas markets, enhance equipment technical service capabilities and build a digital business platform, so as to enhance customer stickiness, speed up information integration and the company's operational efficiency, and the company's market share is expected to further increase.
Brand, scale, technology, service and other core barriers to provide full-cycle multi-faceted services Hongxin Jianfa as the largest equipment operation service provider in China, as of 23H1, the cumulative number of service customers has increased to 191000, with a per capita output value of 1.85 million yuan in 22 years. We conclude that the company has five core advantages in the field of equipment operation: 1) deeply cultivate brand operation and strengthen brand image; 2) technology:
A number of core patents and mature management teams provide all-round support for the construction cycle; 3) scale: the number of equipment is the first, and scale effect provides quality and inexpensive construction equipment; 4) Services: comprehensive network layout to ensure enterprise operation efficiency, speed up the expansion of light asset model; 5) digital operation, improve the efficiency of communication, platform business model to provide customers with efficient, convenient and flexible needs.
Digitalization and light assets improve operational efficiency, overseas markets and category expansion broaden the growth space the company has a large and professional equipment operation service marketing team, through digital and intelligent means to improve the efficiency of logistics and maintenance, 23H1 dispatching / service man-machine ratio is up to 1GV 3900 and 1GR 152 respectively. The revenue of 23H1 platform and other services is 560 million yuan, + 174% compared with the same period last year. The scale of light asset management is growing rapidly, of which the management scale of aerial work platform has reached 28000, which is + 503% compared with the same period last year. The company has actively expanded overseas markets over the past 23 years, and as of 23H1 has set up four outlets overseas, it is expected to invigorate existing assets and improve asset management efficiency through overseas expansion. At the same time, the company continues to expand the types of downstream customers and application scenarios, shipyards, chemical plants, offices and other areas are expected to bring new increments, anti-cycle ability is expected to be improved.
Risk tips: demand growth is slowing, asset management efficiency is not as good as expected, and profitability is declining.