Incidents:
Runbang Co., Ltd. recently announced that its wholly-owned subsidiaries Runbang Heavy Machinery and Runbang Marine have passed the high-tech enterprise review, and the two companies will continue to enjoy preferential policies such as national high-tech enterprise income tax.
Sea breeze: Production capacity is released, ships and terminal resources are dual empowered, and growth can be expected. (1) Production capacity:
The main products of the company's offshore wind power equipment business include various types of offshore wind power foundation piles, conduit racks, offshore wind power installation and operation platforms, marine engineering cranes, etc. Runbang Marine has the production capacity to supply 300,000 tons of offshore wind power foundation piles and conduit racks to the market every year. (2) Wharves: Currently, the company has two terminals. Taicang Runhe Wharf is a 50,000-ton public grocery terminal, and Qidong Runbang Marine Wharf is a 50,000-ton multi-purpose terminal under customs supervision, all of which are the company's own terminals.
Additionally, the company is preparing to build a third of its own pier in Tongzhou Bay. (3) Ships: The 3,000-ton self-propelled full-rotation crane built by the company is currently being tested and will be used in the hoisting field of offshore wind power single pile foundations, conduit frames, platform modules, booster station components, and large-scale offshore steel structures.
Material equipment: Positioning high-end, acquiring the material equipment business under FLSmidth Group, and opening up the international market. The company's material handling equipment business is positioned in the middle and high-end market. The material handling equipment brand “Gemma/GENMA” trademark has been recognized as a “famous trademark of Jiangsu Province” by the Jiangsu Administration for Industry and Commerce, and the “Gemma/GENMA” brand cranes have gradually entered the international market. In the first half of 2023, the company acquired the global bulk handling business of Thyssenkrupp (Thyssenkrupp) and Sandvik (Sandvik) under the FLSmidth Group, which helped to quickly establish the company's leading position in the field of global bulk handling system equipment.
It has great advantages in ship support segmentation, and its own terminals are rich in resources. This business is greatly influenced by the international shipping and shipping markets. Since its inception, the company has been developing ship supporting equipment business. Through years of development, the company has accumulated rich technology and experience, and has obvious advantages in related market segments.
Currently, the company owns two terminals and will build a third wharf in Tongzhou.
New and old businesses are empowered, and the dual engine drives new growth. The company is actively promoting the “Tongzhou Bay Equipment Manufacturing Base Project” in Tongzhou Bay, further developing layout in traditional business fields, and adding new products including floating offshore wind power foundations, large megawatt offshore wind power stable platforms, LNG clean energy modules, etc., to expand the production capacity of the company's high-end equipment business.
Profit forecast: Seabreeze production capacity released, shipping sentiment repaired. We expect the company's revenue for 2023-2025 to be 61.1/71.0/ 8.21 billion yuan, and the net profit to mother for 2023-2025 will be 0.7/3.9/ 4.3 billion yuan, respectively, and the corresponding PE will be 55.6/9.6/8.7, respectively. The profit of 2024E was given a PE valuation of 11.3 times, corresponding to the target price of 5 yuan. It was covered for the first time, and a “buy” rating was given.
Risk warning: downstream demand falls short of expectations, profit forecasts and valuation judgments fall short of expectations