Jiangsu Rainbow Heavy Industries Co.Ltd(002483) (002483)
The long-term and high prosperity of offshore wind power drives the vigorous development of offshore wind power equipment business. According to the 2030 carbon peak action plan issued by the State Council on October 24, the cumulative total installed capacity of wind power and Cecep Solar Energy Co.Ltd(000591) power generation will reach more than 1200gw in 2030. According to the data released by the national energy administration, the new grid connection of sea breeze in the first three quarters of this year was 3.82gw, a significant increase over last year. Recently, various coastal provinces have successively launched the sea wind installation planning during the 14th Five Year Plan period. At present, the planned new sea wind installation will exceed 34.7gw by 2025. It can be seen that the offshore wind power will continue to have a high installed capacity for a long time. The company has the production capacity of various offshore wind power installation platforms, offshore wind power foundation piles, offshore wind power steel structures, offshore engineering cranes and other equipment and products, among which the offshore wind pile foundation business is the main support for the company's performance growth this year. Capacity expansion was completed last year. At present, it has a capacity of 200000 tons. The capacity potential is further released by optimizing the loading and transportation capacity. According to the company's announcement, in the first half of 2021, the revenue of offshore engineering equipment and supporting equipment business reached 788 million yuan, a year-on-year increase of 209.38%, accounting for 41.71% of the total revenue, surpassing the material handling equipment business and becoming the largest business of the company in one fell swoop.
Create "dual core" brand advantages, and overseas material handling business has become a new growth point. Since 2021, the relief of the epidemic has driven the global economic recovery, and the demand for container and dry bulk cargo transportation in international trade has increased. The company mainly provides relevant material handling solutions for offshore engineering equipment, shipyards, container terminals and bulk material systems, and has strong technical and brand advantages in the industry. The "Gema / genma" independently developed by the company over the years has been recognized as the "famous trademark of Jiangsu Province". The specific products include mobile port crane and port dust-free hopper, pneumatic ship unloader, buried scraper ship unloader, etc. Koch, an old German enterprise acquired by the company, can produce ship unloaders, conveyors, stackers, reclaimers, etc., covering the field of heavy bulk material handling such as coal, iron, bauxite and copper mine, so as to form a dual brand complementary advantages with "Gema" and comprehensively optimize the industrial structure. At present, the lag effect of the epidemic on the business sector is gradually emerging. According to the company's announcement, the operating revenue of material handling in the first half of 2021 was 500 million yuan, a year-on-year decrease of 43.0%, and the gross profit margin reached 13.7%, a year-on-year increase of 1.1%. According to the company's announcement, in July 2021, Koch company of Germany, a subsidiary of the company, won the bulk material equipment order of nearly RMB 1.9 billion from the United Arab Emirates, and the overseas business expansion is expected to rebound the performance of animal material handling. In the future, with the accelerated development of modern logistics industry, the company will further expand the production and marketing scale of material handling, and its performance is expected to grow.
The "two legs" development of environmental protection business has taken shape, and the "double high" of production capacity and gross profit has helped greatly improve the performance. In March 2021, the general office of the State Council issued the notice on printing and distributing the implementation plan for strengthening the reform of hazardous waste supervision, utilization and disposal capacity, which proposed that by the end of 2022, the harmless disposal rate of medical waste in built-up areas of cities above the county level should reach more than 99%; By the end of 2025, establish and improve the hazardous waste supervision system with strict prevention at the source, strict management in the process and severe punishment in the consequences. All provinces and cities have issued local hazardous waste treatment policies accordingly. In 2020, the Ministry of housing and urban rural development and the national development and Reform Commission jointly issued the implementation plan for strengths and weaknesses of urban domestic sewage treatment facilities, which proposed that by 2023, the capacity of urban facilities at and above the county level will basically meet the needs of domestic sewage treatment. With the increase of national attention, the market demand of sludge treatment industry is gradually released. The company's environmental protection business mainly covers hazardous waste, medical waste disposal and sludge disposal, both of which have begun to take shape. According to the company's announcement, the hazardous waste and medical waste disposal business of PetroChina environmental protection, a subsidiary, has a capacity of 330000 tons / year, and the scale is in the forefront of listed companies. According to the company's announcement, the subsidiary lvwei environmental protection has cooperated with the technical team of Fudan University to establish a company to vigorously expand key and difficult fields such as river sludge, pipeline sludge and deep pit sludge. At present, it has a production capacity of 1 million tons / year, and 820000 tons / year production capacity projects are under construction. According to the semi annual report data of the company, the environmental protection performance of the company achieved rapid growth in the first half of 2021, with an operating revenue of 459 million yuan, accounting for 24.29% of the company's operating revenue, with a year-on-year increase of 64.21%; The gross profit margin of hazardous waste and medical waste disposal reached 51.3%, a year-on-year increase of 9.9%. In the future, with the continuous growth of market demand for hazardous waste and sludge disposal brought by economic development, the high gross profit margin and large-scale capacity release of the industry will drive the rapid growth of the company's environmental protection performance.
Guangzhou industrial control entered the master countdown, and all-round empowerment entered a new stage of development. The controlling shareholder of Guangzhou industrial control group is Guangzhou Municipal People's government. The group controls many large advanced manufacturing industries and has rich resources. According to the announcement, Guangzhou industrial control will ensure the company's personnel independence, asset independence, financial independence, institutional independence and business independence, and the ownership will not have an impact on the company's operation and management structure. Through its own resource advantages, industrial control will actively empower the company from the aspects of capital operation, market development and financial support, vigorously support the company to build a high-end equipment industry production base in the south, and expand the market orders of offshore wind power equipment, material handling equipment and environmental protection business in the South China sea and Guangdong, Hong Kong and Macao Bay. The company is expected to take the lead in seizing market share in the south, especially the South China Sea is extremely rich in offshore wind power resources and is currently in the early stage of development. At the same time, it is expected to cover emerging offshore wind power development countries such as the Philippines, Malaysia and Thailand through market effect radiation in the future, so as to complete the overseas expansion of business. At present, the company is in a critical stage of development. With the full support of industrial control, the company is expected to break through the growth bottleneck and enter a new stage of growth.
Maintain the "overweight" rating: the company's "high-end equipment + environmental protection" business structure layout, and its industries have good development prospects and market activity. Driven by national policies, offshore wind power will have an ultra cycle and high prosperity development trend, and the material handling business has formed a dual brand collaboration, covering light and heavy bulk material transportation equipment, In terms of environmental protection, the company has a large processing capacity and is expected to obtain a larger market share with the promotion of policies. The state-owned shareholders are about to take over, and all-round empowerment will lead the company into the high-speed growth channel, with good development prospects in the future. It is estimated that the operating revenue of the company from 2021 to 2023 will be 4.234 billion yuan, 5.374 billion yuan and 6.622 billion yuan respectively, with a year-on-year increase of 17.14%, 26.93% and 23.21% respectively. From 2021 to 2023, the net profit attributable to the parent company was RMB 334 million, RMB 444 million and RMB 595 million respectively, with a year-on-year increase of 30.50%, 32.83% and 34.08% respectively. It is estimated that the EPS from 2021 to 2023 will be 0.35, 0.47 and 0.63 yuan respectively, and the corresponding PE will be 23.46, 17.66 and 13.17 times respectively.
Risk warning event: policy promotion is not as expected; Intensified market competition; The market demand of downstream industries grows slowly.
