\u3000\u3000 Jiangsu Zhongtian Technology Co.Ltd(600522) (600522)
Matters:
On February 16, the company issued a foreign investment announcement that its subsidiary Zhongtian offshore engineering plans to jointly invest with Jiangsu Haili wind power equipment Technology Co., Ltd. (hereinafter referred to as “Haili wind power”) to establish Jiangsu Zhonghai Offshore Engineering Co., Ltd. (tentative name, hereinafter referred to as “joint venture”, and the final name shall be subject to the approval of the market supervision and administration department), Engaged in offshore wind power engineering contracting business, undertaking offshore wind power foundation construction, maintenance and other engineering services. The registered capital of the joint venture is RMB 500 million, with Zhongtian offshore engineering contributing RMB 255 million, accounting for 51% of the registered capital, and Haili wind power contributing RMB 245 million, accounting for 49% of the registered capital.
Guoxin communication view:
Offshore wind power is a medium and long-term high boom track, which will be invested and constructed during the 14th Five Year Plan period
According to the offshore wind power installation plan of provinces and cities during the 14th Five Year Plan period, the new installed capacity of offshore wind power in all provinces of China is expected to exceed 32gw during the 14th Five Year Plan period, the incremental installed capacity will exceed 22gw from 2022 to 2025, and the average annual compound growth rate of installed capacity is expected to reach 40% (without considering the installation parity). It is a high boom track. According to incomplete statistics, the bidding scale of offshore wind power in January 2022 is about 0.4gw, After the rush loading period in 2021, the overall recovery of offshore wind power bidding in 2022 is better than expected.
As a leading enterprise of submarine cable in China, the company has leading comprehensive strength and high safety margin
As a leading enterprise in China’s submarine cable industry, the company is expected to benefit from the recovery of the industry. With the development of installed capacity, deep-sea chemical industry and other trends, the company is expected to continue to consolidate its competitive advantage. In the long run, there are still certain safety barriers in price and gross profit, and the company’s submarine cable business as a whole maintains steady growth.
It is proposed to jointly establish an offshore engineering company, which will further enhance the strength of offshore engineering and is expected to increase the performance flexibility
The company’s establishment of an offshore engineering joint venture is expected to form a synergistic effect with hoisting vessels and further enhance the strength of offshore engineering construction. The company’s investment in the Deepwater weather sector will continue to improve the company’s core business performance under the adverse conditions. At present, the company has disclosed that the orders of offshore projects in hand exceed 10 billion yuan. The company is combined with Xinjiang Goldwind Science And Technology Co.Ltd(002202) and Haifeng power. With the release of existing orders and leading layout, the offshore sector is expected to maintain rapid growth.
Investment suggestion: be optimistic about the company’s marine sector barriers and new energy business space, and maintain the “buy” rating
We are optimistic about the barrier of Jiangsu Zhongtian Technology Co.Ltd(600522) marine sector and the flexibility of new energy business. Considering that the gross profit margin of the company’s commodity trade revenue is only 0.8% and gradually shrinks and exits, the overall profitability of the company will be greatly improved after the strategic transformation. We expect that from Jiangsu Zhongtian Technology Co.Ltd(600522) 2022 to 2023, the operating revenue will be 45.5/44.2 billion yuan (year-on-year – 5.2% / – 2.9%), the net profit attributable to the parent company will be 3.7/4.7 billion yuan, and the corresponding PE will be 16 / 11 times respectively, which is lower than the average valuation level of comparable companies and maintain the “buy” rating.
