\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 886 Jangho Group Co.Ltd(601886) )
Event:
The company released the first quarter report of 2022. In 2022q1, the company achieved an operating revenue of 3.288 billion yuan, a year-on-year increase of 6.06%, and a net profit attributable to the parent company of 91 million yuan, a year-on-year decrease of 56.42%, deducting 130 million yuan of non attributable net profit, a year-on-year increase of 13.65%.
Revenue grew steadily and net profit turned from loss to profit
In 2021, the company has fully accrued the relevant impairment losses of Evergrande group. In 2022, the net profit attributable to the parent company of Q1 company has turned loss into profit, and the year-on-year decrease is mainly due to the impact of changes in fair value in 2021. After deducting the impact of non recurring profits and losses, the net profit of 2022q1 company deducted from non attributable parent company reached 130 million yuan. The company actively optimized the cost control. In 2022q1, the gross profit margin was 16.71%, an increase of 0.5pct year-on-year, and the cost rate during the period was 13.3%, which was basically the same as that of last year.
Under the guidance of the policy, photovoltaic buildings are the industry trend. The continuous winning of BIPV orders drives the growth of the company. The Ministry of housing and urban rural development stipulates that Cecep Solar Energy Co.Ltd(000591) system shall be installed in new buildings from April 1, 2022. This mandatory policy shows that the industry trend of building + photovoltaic will become more and more obvious. As a leading enterprise in the curtain wall field, the company not only has professional qualification in the curtain wall field and high-quality curtain wall customer group, but also has technical reserves in the photovoltaic curtain wall integration project. At present, the company has won the bid for the photovoltaic construction project of 613 million yuan, and it is expected that the cumulative bid winning orders will exceed 1 billion yuan in 2022. The company is expected to open the second growth curve with BIPV curtain wall.
There are plenty of orders in hand and there is considerable room for growth in the future
In Q1 of 2022, the cumulative bid winning amount of the company’s building decoration sector was about 6.044 billion yuan, with a year-on-year increase of 5.29%, including 3 photovoltaic construction projects, with a total bid winning amount of 613 million yuan, accounting for about 10.15% of the total bid winning amount of the company in the first quarter, and the number of projects in the first quarter was 157, a decrease of about 39.15% compared with the same period of the previous year. In 2022, the company has sufficient room for order growth and steady growth in the future.
Investment advice and profit forecast
We estimate that the operating revenue of the company from 2022 to 2024 will be 24.4942863732362 billion yuan respectively, with a year-on-year increase of 17.82% / 16.92% / 13.01%. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 801 / 1002 / 1252 million respectively, with a year-on-year increase of 179.54% / 25.08% / 24.98%, corresponding to EPS of RMB 0.69/0.87/1.09 from 2022 to 2024, and the current share price corresponding to PE of 8.3/6.6/5.3 respectively.
Risk tips
The development progress of BIPV is less than the expected risk, the collection of receivables is less than the expected risk, and the downstream market continues to be depressed.
