Seiko Steel Structure (600496) Company Comments: Pre-Order for Assembly General Contracting Business Increases, and Forecast of Results Meets Expectations

Seiko Steel Structure (600496) Company Comments: Pre-Order for Assembly General Contracting Business Increases, and Forecast of Results Meets Expectations
Orders have steadily increased, and policies have pushed assembly steel structures to meet new changes. Soon, the company announced its 2019 business briefing.The company’s cumulative undertaking amount is 140.42 ppm, an increase of 14 over the same period last year.45%.Among them, the public construction sector and industrial construction business increased by 84 compared with the same period last year.70%, 14.12%.The company signed new orders of over 100 million yuan in 201961.2 billion, an annual increase of 29.6%, of which public, industrial, commercial construction orders over 10,000 yuan growth rate were 143.4%, 19.3%, 10%.The significant improvement of the company’s public 上海夜网论坛 construction sector is mainly due to the company’s search for upgrades based on the traditional steel structure subcontracting model. The shift from the professional subcontracting model to the EPC general contracting model has brought about an increase in the company’s business undertaking scale and orders of 100 million yuan. Under the background of the Ministry of Housing and Construction vigorously promoting the prefabrication of steel structures, Zhejiang Province has issued the “Evaluation Standards for Prefabricated Buildings”, which requires that the prefabrication rate of prefabricated buildings reaches 50% or more.advantageous.As of the end of 2019, the company has opened up six major regional markets through the technology joining model.At the beginning of January, it undertook two projects: “New Shaoxing Sports 武汉夜网论坛 School EPC Project” and “Mirror Lake Headquarters EPC Project”, with a total contract value of 6.8.5 billion.In the future, we can continue to look forward to the advancement of the company’s green building GBS technology and the transformation of results. The prefabricated construction business is leading the technology, and the method of joining technology broadens the profit channel. On January 10, 2020, the company’s “High-rise Steel-Concrete Hybrid Structure Theory, Technology and Engineering Application” project won the first prize of the National Science and Technology Progress Award, showing the companyLeading technology in prefabricated construction.At present, the company has built a complete set of technical systems for green buildings integrated with this technology, forming a five-product system of PSC residential systems, apartments, schools, hospitals, and office buildings, and opened in six places including Hebei, Shanxi, and Hunan with a technology joining model.Regional markets.This technology joining method has strong operability and rapid expansion, and the company makes profits by referring to partner technology and resource costs.This solves the regional restrictions of prefabricated buildings and widens the company’s prefabricated profit channels. Before the profit growth rate, the EPC model and prefabricated construction helped the company improve its overall gross profit margin.On the evening of January 15th, the 19-year performance forecast was released, and it is expected to realize net profit attributable to mothers in 19 years.8-4.200 million, an annual increase of 109% -131%, and the net profit growth rate of non-returned mothers is expected to be 115% -141%, which is in line with our previous expectations.The company’s median profit growth rate is relatively high, mainly due to the continuous improvement of business undertakings. At the same time, the company vigorously promotes the prefabricated construction and EPC general contracting business, and has achieved better development. The increase in the technology’s franchise model has improved the overall gross profit level.It is also continuously improving the quality of orders and strengthening the operation of projects, and there is room for continued improvement in gross profit margin. Investment suggestion We believe that the steel structure industry is booming, and the company’s contracts in hand are steadily increasing, the order structure is improving, new business development can be expected, and performance promotes high growth.The continuous business increase caused by the policy-driven assembled steel structure of the company that proposed the changes, and at the same time reported that the controlling shareholder of the merged company has changed, and the impact of the default of the Seiko Holding Group bonds on it has basically been eliminated.We maintain the EPS for 2019-2021 to 0.22, 0.26, 0.32 yuan / share, corresponding to PE, 14, 12, and 10 times, maintaining a target price of 4.40 yuan, maintain “Buy” rating. Risk warning: policy advances less than expected; steel industry boom declines