公司核电业务具备较高弹性。随着能源转型，核能再次受到重视，国家加大核电项目审批力度。公司核电业务逐步恢复并发展，在核安全设备制造方面处于领先地位，研发水平强，引领核电站堆内构件吊篮筒体制造的国产替代。募资扩产第四代核级容器计划进展顺利，未来第四代核电技术有望成为发展重点，高温气冷堆具备明显优势，具有广阔的商业应用前景。Report summary:
The company's revenue and net profit are growing steadily, and there are sufficient orders in hand. Established in 2000 and listed on A-shares in 2008, Hailu Heavy Industries is a leading domestic professional design and manufacturer of energy saving and environmental protection equipment. The company's main business is the manufacture and sale of waste heat boilers, pressure vessels, and nuclear safety equipment, and also provides environmental services such as solid waste treatment and photovoltaic power plant operation. 2024Q1 achieved operating income of 465 million yuan, +5.67% year on year, realized net profit of 45 million yuan, +26.03% year on year. In 2023, the company achieved operating income of 2,795 billion yuan, +18.20% year on year, and realized net profit of 340 million yuan, +1.08% year on year. The amount of new orders signed by the company in 2023 was 3.275 billion yuan, and the cumulative number of orders in hand by the end of 2023 was 4.581 billion yuan. The orders were sufficient to support the company's long-term development.
The waste heat boiler and pressure vessel business is booming in production and sales, and is expected to benefit from the high downstream boom. The company's waste heat boiler business mainly serves customers in various industries such as steel, petrochemicals and non-ferrous smelting, while the pressure vessel business is deeply involved in the petrochemical and coal chemical industries. The company has been involved in the boiler and pressure vessel business for many years. The design and manufacturing capacity is in a leading position in the country, and its profitability has improved over a long period of time, and it is at the forefront of the industry. In recent years, capital expenditure in the domestic petrochemical industry has remained high, and many projects have started one after another. Demand for large-scale special equipment such as waste heat boilers and pressure vessels is strong, which is expected to drive the company's performance to show a new round of growth. At the same time, the company's waste heat boiler business will also benefit for a long time from the rise in demand for equipment in the non-ferrous metallurgy industry brought about by large-scale domestic industrial equipment upgrades and circular economic development; the national energy security strategy promotes the rapid development and rise in prosperity of the coal chemical industry, which will continue to benefit the company's pressure vessel business.
The company's nuclear power business is highly flexible. With the energy transition, nuclear energy is once again receiving attention, and the country is stepping up the approval of nuclear power projects. The company's nuclear power business has gradually recovered and developed. It is in a leading position in the manufacture of nuclear safety equipment. It has a strong level of research and development, leading the domestic replacement of gondola cylinder manufacturing components in nuclear power plant reactors. Plans to raise capital to expand production of fourth-generation nuclear grade containers are progressing smoothly. Fourth-generation nuclear power technology is expected to become a development focus in the future. High-temperature air-cooled reactors have obvious advantages and broad prospects for commercial application.
The photovoltaic power generation and environmental protection business provide stable support for the company's profits. The installed capacity of photovoltaic energy in China continues to grow and has become an important new energy generation method. The company operates the photovoltaic power plant business through wholly-owned subsidiaries, and stable power generation capacity and high gross margin support the company's profits. The environmental protection industry has huge market potential. The company's environmental engineering business continues to develop and is committed to solid waste and sewage treatment business. In the future, it will expand services throughout the industry chain to meet market demand.
Profit forecast: The company's net profit for 2024-2026 is expected to be 4.5/54/61 billion yuan, respectively, and the corresponding PE is 11/9/8 times, respectively, maintaining a “buy” rating.
Risk warning: raw material price fluctuation risk, profit forecast and valuation judgment fall short of expectations
