Haibo(SZ:300517) Zheng Quan Zhi Xing·2025-05-30 12:05Core Viewpoint - The credit rating report indicates that Haibo Heavy Engineering Technology Co., Ltd. maintains a stable credit rating of A+, reflecting sufficient order backlog and revenue sources, but highlights risks related to high customer concentration, large accounts receivable, declining gross margins, and significant pending litigation [2][5][6]. Financial Performance - Total assets decreased from 17.50 billion in 2022 to 15.07 billion in 2025 [2]. - Revenue for 2024 is projected at 4.20 billion, down from 6.37 billion in 2022, indicating a significant decline [2][12]. - The net cash flow from operating activities improved to 0.62 billion in 2025 from -0.28 billion in 2023 [2]. - The debt-to-capital ratio improved to 17.44% in 2025 from 27.50% in 2022, indicating a reduction in leverage [2]. Order and Revenue Outlook - The company signed new contracts worth 3.47 billion in 2024, a significant drop from 7.83 billion in 2023 [13]. - As of the end of 2024, the company had a substantial backlog of uncompleted contracts totaling 10.10 billion, with 5.44 billion yet to be recognized as revenue [4][14]. - The revenue concentration is high, with the top five customers accounting for 55.27% of total sales, increasing the risk of cash flow issues [4][15]. Industry Environment - The construction industry is experiencing a slowdown, with a projected growth rate of only 3.9% in 2024 due to weak demand from the real estate sector [8][9]. - The competitive landscape in the bridge steel structure sector is intense, with many small players and few large enterprises dominating the market [11][10]. - The government is promoting green building initiatives, which may provide long-term growth opportunities for the steel structure industry despite current challenges [10]. Operational Challenges - The company faces significant pressure from high accounts receivable, which accounted for 53.41% of total assets as of 2024, leading to cash flow constraints [16]. - The gross margin has been declining, with the latest figures showing a drop to 19.36% in 2024 from 21.47% in 2023 [12]. - The company’s production capacity utilization remains low at approximately 42%, indicating inefficiencies in operations [14].