HONGRUN CONSTRUCTION(SZ:002062) Xin Lang Cai Jing·2025-09-26 03:50Core Insights - The article discusses the recent research conducted by QuanGuo Fund on Hongrun Construction, highlighting the company's stable revenue from urban infrastructure and its strategic focus on cash flow over high profit margins [1][2]. Group 1: Company Overview - Hongrun Construction focuses on urban infrastructure in the Yangtze River Delta region, maintaining stable revenue through accumulated equipment, technology, and a good reputation [2][3]. - The company's real estate business is currently in a phase of inventory reduction, with net profit in the first half of the year declining compared to 2024 due to land value-added tax settlements [2][3]. Group 2: New Energy Business - The new energy segment has turned a profit of 52 million yuan in the first half of 2025, recovering from losses in 2024, driven by stable component prices and contributions from photovoltaic EPC projects [3][4]. - The company expects to produce 2-2.5 GW of components for the year, with cash flow projected to break even despite potential depreciation impacts on financial performance [3][4]. Group 3: Investment Model and Advantages - The company excels in EPC construction and has experience in operating a 80 MW photovoltaic power station in Qinghai, allowing for flexible decision-making and project implementation [4][5]. - Investment in projects typically involves a 35% stake for the company and a 65% stake for state-owned enterprises, ensuring controlled cash outflow and stable returns [4][5]. Group 4: Other Investment Projects - Besides the Qinghai photovoltaic project, the company is also involved in the Hangshao-Tai high-speed rail project, which is expected to enhance profitability as train operations increase [5]. - The ongoing EPC projects are anticipated to contribute to the company's stable earnings [5]. Group 5: Strategic Planning - The company's development strategy integrates construction, new energy, and technology, with a focus on robotics as part of its new productivity initiatives [6][7]. - The company has a strong foundation in high-tech applications and is well-positioned to collaborate in the robotics sector, enhancing its operational capabilities [6][7]. Group 6: Long-term Investments - Long-term equity investments primarily include PPP projects, such as the Ningbo Zhongxing Bridge, where the company holds a 70% stake, ensuring stable returns as the project enters the government buyback phase [7].