Jangho(601886) Changjiang Securities·2024-07-05 04:31Investment Rating - The investment rating for the company is "Buy" [24] Core Viewpoints - The company is a leading enterprise in the traditional curtain wall industry, achieving outstanding engineering performance. In 2023, it ranked first in the "2022 Annual Comprehensive Ranking of China's Architectural Decoration Industry (Curtain Wall Category)" published by the China Architectural Decoration Association, maintaining this position for six consecutive years. The company is an integrated solution provider for curtain wall systems, focusing on energy-saving and environmentally friendly technologies [2][5] - The company has actively expanded its BIPV (Building Integrated Photovoltaics) business, benefiting from the continuous decline in component prices and supportive policies, which are expected to drive demand. The market for photovoltaic curtain walls is projected to reach 625.02 billion yuan by 2025, with a potential market size of 4,862.57 billion yuan if penetration rates reach 50% in new buildings [7][74] Summary by Sections Company Overview - Founded in 1999 and listed in 2011, the company operates in two main segments: architectural decoration and healthcare. The architectural decoration segment includes curtain walls and photovoltaic buildings, while the healthcare segment focuses on international ophthalmic medical services. In 2023, the company achieved a revenue of 20.954 billion yuan, a year-on-year increase of 16.05%, and a net profit of 671.7 million yuan, up 36.89% year-on-year [5][6] BIPV Business Expansion - The company has invested in a flexible production base for customized photovoltaic components, which began operations in 2023. This initiative aims to enhance the synergy between its existing curtain wall business and the new BIPV projects, creating a new profit growth point [6][78] - In 2023, the company recorded a rapid growth in BIPV revenue and orders, with BIPV project revenue reaching 704 million yuan, a staggering increase of 309.30% year-on-year [22][76] Market Dynamics - The market for photovoltaic components has seen a significant price drop, with prices falling to below 1 yuan/W by the end of 2023, a decrease of approximately 48% within the year. This price reduction is expected to stimulate demand significantly, supported by declining investment costs and policy subsidies [7][23] - The company’s architectural decoration business saw new orders of approximately 25.84 billion yuan in 2023, a 10% year-on-year increase, with curtain wall and photovoltaic building orders growing by 21% [22][76] Policy Support - The government has introduced various standards and subsidy policies to promote BIPV integration in buildings. These include mandatory installation of solar systems in new buildings and financial incentives for projects that meet specific energy efficiency criteria [12][51]