The company issued a foreign investment announcement
In order to further enrich the product matrix, expand categories around the “Construction Hole Solution” and accelerate the industrial layout of new energy-saving UPVC plastic windows, the company plans to jointly fund the establishment of Senying Window Industry Qinhuangdao Co., Ltd. (hereinafter referred to as the “target company”), with a proposed registered capital of 60 million yuan, of which the company pledged capital of 36 million yuan, accounting for 60% of the investment; Qinhuangdao Shengbiao paid 24 million yuan, accounting for 40% of the investment.
Strong alliances to effectively combine production and channel advantages
After the establishment of the target company, the company provided necessary technical support and related resources such as production layout, production line planning, equipment selection, production process, new product design and development, quality control, etc.; Qinhuangdao Shengbiao provided industrial land and ground attachments, and actively used existing and proposed sales channel resources to assist the target company in building and continuously improving its own energy-saving UPVC marketing channels, etc.
Optimize category structure and expand UPVC application scenarios
The company continues to expand categories and launch new products around the “Building Hole Solution”, gradually expanding from a single energy-saving aluminum-clad wooden window to aluminum alloy windows, energy-saving UPVC windows, etc.; in the future, the company's wooden window revenue was 790 million, accounting for 84% of the revenue. In the future, it plans to build mainly energy-saving aluminum-clad wooden windows, supplemented by aluminum alloy windows, energy-saving UPVC windows and other energy-saving windows, and a multi-category collaborative development pattern with products such as windows, facades and sun rooms.
We believe that this foreign investment will help the company further accelerate the industrial layout of energy-saving UPVC new plastic windows and improve the product matrix. The company and Qinhuangdao Shengbiao have a high degree of consensus on relevant technology promotion and market prospects. They will rely on their respective industrial resources and differentiated advantages, and use their good market resources and customer base within their cooperation regions to expand the application of energy-saving UPVC products in the fields of energy saving in buildings, and jointly push the UPVC window industry into a new era of “high standards and high quality” development.
Maintain profit forecasts and maintain “buy” ratings
We expect the company's net profit to be 1.7/2.1/260 million yuan in 24-26 years, respectively, and the corresponding PE is 11/9/7X, respectively, to maintain a “buy” rating.
Risk warning: Real estate policies fall short of expected risks, market competition increases risk, risk of bad debts due to accounts receivable, risk of falling short of expectations in foreign investment progress, etc.