The semi-annual report profit of Hangxiao Steel Structure increased significantly, the prefabricated steel structure business has a bright future

Hangxiao Steel Structure recently disclosed its semi-annual report. In the first half of the year, the company achieved operating income of 2.789 billion yuan, a year-on-year increase of 4.22%; It achieved an attributable net profit of 478 million yuan, a year-on-year increase of 131.95%; net profit has exceeded the full year of 2019. Analysts believe that the company, as a steel structure leader, has obvious advantages in technology and resources. It is expected that orders for traditional steel structures and Wanjun Green Construction will grow rapidly in the future.

The company stated that while consolidating the traditional steel structure business, the company will stick to the road of industrial transformation, upgrading and development. The company will realize the strategic route from manufacturing and construction to resource output to integrated services, and implement the strategic vision of "green building integrated service provider".

Revenue resumed strong growth, with sufficient orders in hand

Specifically, the company achieved a revenue of 1.894 billion yuan in a single quarter in the second quarter, an increase of 26.51% year-on-year, and a single-quarter net profit margin increased by 6.3% to 13.8% year-on-year, basically eliminating the adverse effects of the epidemic. The company has sufficient orders in hand. During the reporting period, the company’s new contracts totaled approximately 4.6 billion yuan, of which the value of newly signed contracts for space steel structures increased by 23.87% over the same period last year. The value of newly signed contracts for multi- and high-rise steel structures increased by 6.54% over the same period last year.

It is worth mentioning that, as a new carrier of the company's transformation and upgrading, Wanjun Green Construction has achieved gratifying business results. During the reporting period, the amount of newly signed online sales orders was approximately 816 million yuan, a year-on-year increase of 181.99%. Wanjun Green Construction Online and Offline Exhibition Center signed 220 new contracts, with a newly signed contract value of approximately 8.47 million yuan; 1,349 newly signed online sales orders, with a newly signed amount of approximately 816 million yuan. With the increase in the number of contracts signed on the platform in the future, it is expected to drive sustained and steady growth in revenue and profit and provide the company with new growth points.

Prefabricated buildings are advancing at full speed, and leading companies are particularly benefiting

In May 2020, the Ministry of Housing and Urban-Rural Development put forward guidance on advancing the reduction of construction waste. Suggestions: implement new construction methods. It is necessary to vigorously develop prefabricated buildings, actively promote steel structure prefabricated houses, and implement a construction model of factory prefabrication, assembly construction, and information management. The successive introduction and implementation of supporting policies for prefabricated housing by local governments across the country are expected to promote the accelerated development of the steel structure industry and the replacement of traditional steel-concrete buildings. Especially for companies that have accumulated technology, technical standards, and demonstration benchmarking projects in the research and development and practice of steel structure housing.

On July 28, 2020, 13 national ministries and commissions, including the Ministry of Housing and Urban-Rural Development, issued the "Guiding Opinions on Promoting the Coordinated Development of Intelligent Construction and Building Industrialization". The document proposes to vigorously develop prefabricated buildings; On July 24, 7 national ministries and commissions including the Ministry of Housing and Urban-Rural Development issued the “Action Plan for the Creation of Green Buildings”, proposing to vigorously develop steel structures and other prefabricated buildings; improve the standardization level of prefabricated building components and promote the development of prefabricated decoration. Steel structure has once again become the focus of development.

The data shows that according to the output of domestic steel structure enterprises according to the statistics of the Steel Structure Association, as of 2018, there are 12 steel structure companies with an annual output of more than 300,000 tons. There are 41 steel structure companies with an annual output of more than 100,000 tons, and 58 steel structure companies with an annual output of more than 50,000 tons. In 2018, there were 28,922 domestic steel structure companies, which dropped to 21,293 in 2019. Although the number of enterprises in the entire steel structure industry is relatively large, there are still fewer enterprises above designated size.

Analysts believe that the overall recovery of the infrastructure sector this year, sub-sector prefabricated construction has entered a period of rapid growth, and advantageous companies in all links of the industrial chain will benefit significantly.

It is understood that Hangxiao Steel Structure is the enterprise with the largest amount of domestic and foreign steel structure residential development and construction. While promoting prefabricated buildings, Hangxiao Steel Structure has accumulated a large number of technical patents. During the reporting period, the company and its subsidiaries have received a total of 22 new patents, of which two new patents related to the concrete-filled steel tube beam structure residential system have been added (the patent pool has received a total of 125 national authorized patent numbers, including 16 invention patents). The achievement of this series of technological achievements has consolidated and improved the company's technological advantages and will strengthen the company's core competitiveness in the field of steel structure construction.