Haili wind power (301155)
As the leading enterprise of offshore wind power tower pile foundation in China, the company is in a leading position in the market share of offshore wind power business. Since its listing, the company has actively expanded its production capacity and joined hands with Jiangsu Zhongtian Technology Co.Ltd(600522) to explore offshore construction business, so as to further improve the company’s comprehensive competitiveness and sustainable profitability. Give the company a buy rating.
Key points supporting rating
China’s offshore wind power tower pile foundation is the leader, and the offshore wind power business market is leading. Haili wind power is a professional manufacturer of wind turbine tower and offshore wind turbine foundation located in the Yangtze River Delta. Since its establishment in 2009, the company has intensively cultivated in the field of wind power. As the core products of the company, wind power tower and pile foundation contribute more than 90% of the revenue. Relying on its competitive advantages in technology, customer resources, capacity layout, business scale, product quality and other aspects, the company’s share of newly installed capacity of offshore wind power tower and pile foundation products in 2019 was more than 25% and 23% respectively, ranking in a leading position in the market.
Revenue grew rapidly and profitability improved significantly. Benefiting from the development of offshore wind power in East China, the company’s revenue and net profit increased rapidly. From 2017 to 2021, the company’s operating revenue increased from 854 million yuan to 5.458 billion yuan, with an average annual compound growth rate of 59.78%, and the net profit attributable to the parent increased from 30 million yuan to 1.113 billion yuan, with an average annual compound growth rate of 827.50%. With the enhancement of the company’s comprehensive competitiveness, the improvement of bargaining power and the gradual embodiment of economies of scale, the company’s profitability has improved steadily. From 2019 to 2021, the company’s gross profit margin was 24.01%, 24.48% and 29.13% respectively, and the net profit margin was 14.46%, 17.27% and 21.55% respectively, showing a steady upward trend, showing the company’s strong cost control ability.
With its own wharf, it has outstanding competitiveness, actively expand production capacity, respond to demand growth, and jointly Jiangsu Zhongtian Technology Co.Ltd(600522) explore offshore construction business. At present, the company has many production bases such as Haili wind power, hailing heavy industry and marine energy, with a total production capacity of about 470000 tons by the end of 2020. At the same time, the company has three wharfs. The freight per ton of tower is 200300 yuan / ton lower than that of manufacturers without wharfs, which has obvious competitive advantage. Since its listing in November 2021, the company has announced a number of production expansion plans, mainly including wind power high-end equipment manufacturing projects located in Nantong port, Dongying City and Rudong County, Nantong city. It is expected that the production capacity will reach 1 million tons by the end of 2023. In addition, in December 2021, the company announced the establishment of Jiangsu Zhonghai Offshore Engineering Co., Ltd. in a joint venture with Jiangsu Zhongtian Technology Co.Ltd(600522) to engage in offshore wind power engineering contracting business, undertake offshore wind power foundation construction, maintenance and other engineering services, and further improve the company’s comprehensive competitiveness and sustainable profitability.
Valuation
Considering that the company is affected by the epidemic situation and raw material prices in 2022, the profit forecast of the company is adjusted. It is estimated that the revenue from 2022 to 2024 will be RMB 3.031/52.83/6.149 billion and the net profit will be RMB 415/8.02/1.005 billion. Give a buy rating.
Main risks of rating
The installed capacity of wind power is less than expected; Risk of price fluctuation of raw materials; Capacity expansion was less than expected
