Key points of investment
Haibo Heavy Industry: A leading bridge steel structure engineering enterprise. Established in 1994, Haibo Heavy Engineering Technology Co., Ltd. specializes in bridge steel structure engineering business. Its business scope mainly includes the production and installation of bridge steel structures, as well as corresponding technical research, process design and technical services. In Q1-Q3 2016, the company's operating revenue was 264 million yuan, an increase of 10.68% over the previous year, achieving net profit of 274.172 million yuan, an increase of 2.39% over the previous year. Zhang Haibo is currently the company's chairman and general manager, and is the controlling shareholder and actual controller.
The bridge steel structure industry is developing rapidly. China's steel structure industry is developing rapidly. Crude steel production in 2004 was 272 million tons, reaching 779 million tons in 2013. Highway construction is developing rapidly, which has led to a steady rise in highway and bridge construction. The number of highway bridges increased from 6581 million in 2010 to 7792 million in 2015, of which the number of mega-bridges increased from 2,051 in 2010 to 3,894 in 2015. The proportion of highway bridge construction in highway construction continues to increase, and among highway bridges, the proportion of oversized bridges, mainly steel structures, in highway bridges is also increasing. In recent years, as the advantages of steel structures in urban viaduct construction applications have been widely recognized, China has begun to adopt steel structure forms on a wider scale in urban viaduct construction. The construction of urban viaduct systems will provide new development opportunities for the bridge steel structure engineering industry.
A leader in the bridge steel structure industry, with steady growth in performance. Over the past 20 years, the company has participated in the construction of more than 100 steel structure bridges of various types, involving a complete range of bridge types and bridge sites. The bridge steel structure engineering business is the company's core business and contributes the main revenue. The company's business is mainly concentrated in central China, and Hubei Province contributes nearly half of the revenue. The bridge steel structure engineering business is dominated by self-sourced steel projects, and the steel projects provided by Party A are developing rapidly. The company's gross margin is far higher than that of listed companies in the same industry, and its profitability is strong. The high gross margin is mainly due to the fact that the company pays great attention to technological innovation and effectively controls costs and expenses through its refined and standardized management. In 2016, the company's on-hand order amount was 457 million yuan, an increase of 190 million yuan over 2015. As the company's contracts are implemented one after another, the company's construction revenue will continue to grow steadily. From 2013 to 2015, the number of completed bridge steel structure projects of the company continued to rise.
The future development of the company. The company participated in PPP strategic cooperation in Jiangxia District of Wuhan, with a total investment of about 14.2 billion yuan.
In the future, the company will further expand related businesses, expand market share, and expand business to regions with high traffic and traffic, such as developing services such as bridge reinforcement and maintenance, and applying big data.
Profit forecast and rating: The company's EPS for 2016-2018 is expected to be 0.47 yuan, 0.53 yuan, and 0.60 yuan respectively, and the corresponding PE is 79.6 times, 69.6 times, and 61.8 times, respectively.
Risk warning: new orders do not meet expectations, refunds do not meet expectations