\u3000\u30 Fawer Automotive Parts Limited Company(000030) 37 Guangdong Sanhe Pile Co.Ltd(003037) )
Core view:
Guangdong Sanhe Pile Co.Ltd(003037) : the leader in the pipe pile industry Guangdong Sanhe Pile Co.Ltd(003037) is an enterprise engaged in the production and sales of various types of prestressed high-strength concrete pipe piles. Its products are widely used in various infrastructure projects such as industrial and civil buildings, roads and railways, bridges, ports and wharfs. The company has 15 production bases in Guangdong, Jiangsu, Zhejiang, Fujian, Hunan, Hubei, Liaoning, Shandong, Shanxi, Anhui and other provinces, and supporting corresponding transportation subsidiaries to distribute pipe pile products. Now it has become one of the leading concrete pipe pile manufacturers in China.
Concrete pipe pile industry: under the tone of steady growth, the market demand of pipe pile is expected to increase. Under the tone of steady growth, infrastructure investment is vigorously promoted, coupled with the rapid issuance of special bonds, infrastructure projects are expected to be implemented quickly. In 2022, all provinces in China have large layout plans in infrastructure construction. It is expected that the demand for precast concrete pipe piles in the infrastructure market will increase significantly. In addition, under the background of steady growth, the real estate policy continues to work this year, and the real estate construction is expected to be better than last year, further increasing the market demand for precast concrete pipe piles.
The company has obvious competitive advantages. The company ranks second in the concrete pipe pile industry, second only to the industry leading company Jianhua building materials. Its “Sanhe” brand has high popularity and good reputation in the industry. Relying on years of technology accumulation, the company has gradually established an important position in the formulation of standards for major products in subdivided fields. As of June 2021, the company has 111 patents, including 25 invention patents, 85 utility model patents and 1 design patent.
Investment suggestion: under the condition of good demand for infrastructure investment and real estate investment, the company’s revenue is expected to be 8.150 billion / 9.174 billion / 10.125 billion from 2021 to 2023, with a year-on-year increase of 13.96% / 12.56% / 10.37%. The net profit attributable to the parent company was 83 million / 113 million / 152 million, with a year-on-year increase of – 74.92% / 35.95% / 34.60%. The corresponding EPS is 0.16 yuan / 0.22 yuan / 0.30 yuan respectively. Based on the high prosperity of its downstream demand and the company’s compliance with the new trend of green and low-carbon development, we think the company deserves attention and give a “cautious recommendation” rating for the first time.
Risk warning: the risk that the downstream demand is less than expected; The risk that the cost of raw materials rises more than expected; The risk of industry capacity expansion exceeding expectations.
