The domestic metal enclosure industry leader, high-end metal enclosure system integration service provider Sentexing Group Co., Ltd. was founded in 2001 and landed on the Shanghai Stock Exchange in 2016. to provide an integrated solution for the whole process of metal roofing system from engineering consulting, design, special material supply and processing to installation and construction, with a market capitalization of more than 4 billion, ranking first in the metal roofing industry.
In the "post-epidemic era", the national infrastructure is developing, and the metal enclosure market has a broad prospect. The metal enclosure system is mainly used in the two major fields of industrial buildings and public buildings. Fixed asset investment in transportation, warehousing and post has increased steadily for many years, and the construction of logistics warehousing and collection and transfer centers will become a strong breakthrough in the metal enclosure industry market, which is expected to bring a demand of 28.6 billion yuan. In 2020, the infrastructure project underpins the economy, the civil aviation airport investment increases, the railway transportation investment growth rate picks up, the railway station construction investment increases, our country convention and exhibition industry scale expands unceasingly, each public building will bring the metal enclosure system growth of 6.6 billion yuan.
As a leader in the metal enclosure industry, the company has outstanding core technology, stable market leading position, advanced metal roof production technology and on-site production technology, and is committed to providing customized integrated services for owners. The company has actively carried out national layout, and has set up branches in Shanghai, Wuhan, Chongqing and Guangzhou one after another, the business distribution is becoming more and more reasonable, and has participated in the construction of Xiongan Station, Daxing Airport and other national key projects.
The subdivision of the noise barrier industry is in the ascendant, and the potential of the soil treatment market for traffic noise barriers is expected to increase by an average of 2.6 billion yuan a year in the future. The "outline for Building a Traffic Power" clearly puts forward the goal of basically building a transportation power by 2035, and promotes the integrated development of trunk railways, intercity railways and urban rail transit. The company has been cooperating with Xuplin on high-speed rail noise barrier technology since 2013 and has become a major solution provider in the field of railway and municipal road noise control in China.
In recent years, the Law of the people's Republic of China on the Prevention and Control of soil pollution and other laws and regulations have been issued one after another, which has greatly promoted the demand for soil treatment services and is a great opportunity for the development of the soil remediation industry. It is estimated that the demand for soil control will increase by 5 billion yuan a year. The company introduced advanced soil remediation technologies such as in-situ thermal desorption in 2018, and the successful completion of the Shougang site soil remediation project has accumulated rich experience for carrying out large-scale and large-scale soil treatment projects in the future.
Investment suggestion
The company is a leader in the metal enclosure industry, with advantages in R & D capability, cost control and customer reputation; the scale of the metal enclosure market will continue to expand in the future, and the company as an industry leader will fully benefit; the company will actively open up new business in the field of environmental protection, deepen cooperation with Germany's Xuplin Company, introduce leading international technology, accelerate environmental protection layout, and provide new revenue growth points. The company has strong ability to obtain orders, sufficient orders on hand, and the performance is expected to maintain a high growth rate. We are optimistic about the long-term development of the company. It is estimated that the EPS of the company from 2020 to 2022 will be 0.41,0.58,0.69 yuan per share, the corresponding PE will be 21,15,12 times, and the target price will be 10.44 yuan. Coverage for the first time, giving a "overweight" rating.
Risk tips: manufacturing fixed asset investment decline risk; payback risk; epidemic situation led to the completion of the company's orders are not timely; soil remediation orders are lower than expected.