Hangxiao Steel Structure Co.Ltd(600477) (600477)
It was announced that the BIPV production line was officially put into operation, entered the field of green building, and was raised to the "buy" rating
On November 4, 2021, the company announced that the intelligent production line with an annual output of 1 million square meters of BIPV modules invested and constructed by the holding subsidiary Zhejiang hete photoelectric Co., Ltd. was officially put into operation on November 5, 2021. We believe that hete optoelectronics, as a provider of green new building materials, has strong synergy with Hangxiao Steel Structure Co.Ltd(600477) . The company is expected to form an overall solution by integrating hete optoelectronics's BIPV products in the future. Considering that the steel structure leader has the advantages of technology and brand, the BIPV business may develop rapidly and is raised to the "buy" rating.
The products cover many fields such as facade and ground, with a high proportion of shares held by the management and enthusiasm
Hete optoelectronics is a Chinese photovoltaic power generation R & D and application enterprise, which has a market leading competitive advantage in power generation technology and appearance design of products. The intelligent production line of hete optoelectronics put into operation this time can produce a variety of BIPV modules such as photovoltaic power generation tiles, photovoltaic color curtain walls, photovoltaic power generation bricks, lightweight flexible components and so on. Hangxiao Steel Structure Co.Ltd(600477) holds 51% equity of hete optoelectronics, and Zhang Qunfang (general manager of hete Optoelectronics) holds 49% equity of hete optoelectronics. The management has a high shareholding ratio and a clear equity structure, which helps to mobilize the enthusiasm of the management.
The dual attributes of builders and building materials manufacturers help the release of performance by opening up upstream and downstream
We believe that from the perspective of construction companies, due to many years of construction experience, we have rich technical accumulation in building roof design, enclosure and other businesses. Through the development of BIPV industry, we can improve our market share, and later become a channel dealer of BIPV series products, which is expected to further open up profit space. From the perspective of building materials companies, at present, the photovoltaic products used for BIPV are mainly based on photovoltaic design, and the attention to building decoration is low. The BIPV products used for installation after simple modification of ordinary photovoltaic modules are difficult to meet the requirements of building materials. We believe that hete optoelectronics products may solve the problem of building adaptability of traditional photovoltaic products, and form a complete solution through Hangxiao Steel Structure Co.Ltd(600477) industrial chain coordination, so as to promote the continuous release of performance.
The industrial transformation continued to advance and was raised to the "buy" rating
Considering the recent gradual decline and stabilization of steel prices, we believe that the profits of the traditional main business are expected to be gradually stable, and the medium and long-term entry into the BIPV field is conducive to the company's transformation into an integrated service provider of green buildings and the integration of green industrial chains to the next city. We maintain the prediction of the company's net profit attributable to the parent company for 21-23 years, which is RMB 500 / 624 / 761 million, corresponding to eps0 23 / 0.29/0.35 yuan. Referring to the current comparable company's consistent expectation of 16.37xpe corresponding to 22-year wind, we agree to give the company 17xpe for 22 years, with the target price of 4.93 yuan, which is raised to the "buy" rating.
Risk warning: the project payment collection is less than expected; The increase of steel price exceeds the expectation and affects the gross profit margin of the company; The impact of the epidemic exceeded expectations; BIPV related business was not carried out as expected.
