Since May, Southeast Grid (002135.SZ) has received research from many institutions including Guotai Junan Securities, showing the capital market's high attention to the company.

Southeast Grid (002135.SZ) said during the survey that the company is building characteristic brand projects around the dual-engine development strategy of "EPC general contracting + No. 1 project"; at the same time, it is actively deploying photovoltaic building integration business to form a new performance growth point, and the company's future development will continue to improve.

southeast grid

Construction business grows steadily

According to reports, Southeast Grid is a large-scale professional building steel structure enterprise integrating design, manufacturing and construction, and has long focused on the fields of large-span space steel structure, high-rise heavy steel structure, light steel structure and prefabricated steel structure.

As a leader in the field of space steel structure, Southeast Grid has always adhered to the market positioning of "high, precise, advanced and difficult", and its business is mainly oriented to national key projects and local landmark buildings, such as airports, stadiums, high-speed rail stations, exhibition centers, etc.

In recent years, Southeast Grid has successfully implemented the 500-meter radio telescope "Sky Eye", the 700-meter underground Jiangmen neutrino detector project, the world's first space polyhedron grid structure National Swimming Center "Water Cube", Beijing Capital Airport T3 Terminal, Guangzhou New TV Tower, World Expo China Pavilion, Hangzhou East Railway Station, Hangzhou Olympic Sports Center Main Stadium and other world-renowned landmark buildings. While creating one architectural miracle after another, the operating quality of Southeast Grid has also been steadily improved.

Southeast Grid said in an interview that since obtaining the first-level qualification for general contracting of construction projects in 2019, the company's development concept and profit model have changed. With advantages in technology, brand, team, etc., Southeast Grid actively develops the prefabricated EPC general contracting model, provides full-process services, and serves the entire industrial chain of the construction industry, which has enabled the company's revenue to continue to grow, and its benefits and added value have also been greatly improved.

photovoltaic business

From 2021 to 2023, Southeast Network Frame achieved revenues of RMB 11.287 billion, RMB 12.064 billion, and RMB 12.996 billion, respectively. During the same period, the company's construction business achieved operating incomes of RMB 7.923 billion, RMB 9.173 billion, and RMB 9.444 billion, respectively. The construction business has become the mainstay of the company's development, laying a solid foundation for the steady development of the company's performance.

photovoltaic business

Since the beginning of this year, the newly signed projects of Southeast Grid have progressed smoothly. In the first quarter of 2024, the company and its holding subsidiaries signed 34 new contracts with a cumulative contract value of 2.432 billion yuan, and the total amount of the company's newly signed contracts and winning projects was 5.651 billion yuan.

Significant results in expanding photovoltaic business

Under the guidance of the "dual carbon" goal, my country's energy structure will undergo major adjustments in the future, and the proportion of clean energy such as photovoltaics will increase significantly. Southeast Grid, which has always attached great importance to the national development strategy, has vigorously expanded its new energy business in recent years, with remarkable results.

Following the "dual carbon" policy, Southeast Grid actively deploys photovoltaic building integration business. The company expands the photovoltaic building integration market with the construction model of "assembly + EPC + BIPV" and the operation model of "investment, construction, operation and maintenance integration". The business mainly covers photovoltaic roofs, photovoltaic curtain walls, photovoltaic garages, etc. in the fields of public buildings, industrial and commercial plants.

At present, Southeast Grid has maintained a strong alliance, mutually beneficial and win-win relationship with many companies in the green building package solutions and integrated services. In 2023, Southeast Grid's photovoltaic business achieved revenue of 95.648 million yuan, a year-on-year increase of 2140.59%.

photovoltaic business

Southeast Grid revealed in the survey that while the company is doing well in its existing main business, it is also very optimistic about the development prospects of the new energy photovoltaic industry. With the reduction of photovoltaic components and energy storage costs and technological progress, the cost per kilowatt-hour of photovoltaic and energy storage will continue to decline. As a low-cost, stable and controllable green energy, light + storage has become economical in more and more regions. Under the influence of the "power restriction policy" on the production and operation of some high-energy-consuming enterprises, coupled with the increase in industrial and commercial electricity prices and the requirements of new building specifications, industrial enterprise customers are generally willing to install photovoltaics, and the demand is also increasing.

Under the policy background of the country's vigorous promotion of "carbon neutrality" and green buildings, photovoltaic building integration is expected to usher in a period of rapid development. Southeast Grid actively seizes new opportunities in energy transformation and low-carbon economy, and strives to develop photovoltaic building integration products that meet market demand. It is expected to form a new growth point in the future and further help enterprises embark on the road of high-quality development.

Overseas markets are growing rapidly

In addition to the "dual carbon" policy, Southeast Grid has also actively responded to the "Belt and Road" initiative and proposed four major alliance international strategies with Southeast characteristics: "partner alliance, industry alliance, brand alliance, and reputation alliance".

So far, Southeast Grid has successfully completed overseas projects such as the Venezuela National Convention Center, Venezuela's La Rinconada Baseball Stadium, Panama's Pedregal District Comprehensive Training and Education Center, Mali Parliament Building, Singapore Nanyang Technological University Administration Building, Costa Rica National Stadium, and Kazakhstan's Astana Indoor Cycling Stadium.

Lanfu Finance Network noted that Southeast Grid's overseas business is also growing rapidly. According to the company's disclosure, Southeast Grid's overseas business achieved revenue of 47.0442 million yuan in 2023, a year-on-year increase of 168.19%.

Southeast Grid also showed great ambition for the overseas market. When the company was interviewed, it said that Southeast Grid will continue to implement the international strategy of the four major alliances, focusing on expanding the Middle East, Southeast Asia, South America, Africa and other regions that are highly consistent with the "Belt and Road Initiative", driving the construction, health, new energy and other industries to go out together, accelerating the global strategic layout, and enhancing the global influence of the Southeast brand.

Overall, Southeast Grid's main business has developed steadily, the photovoltaic business has achieved outstanding results, and the overseas market has also grown rapidly. The company's future development continues to improve. It is no surprise that Southeast Grid, whose various businesses are advancing in parallel, has attracted much attention from institutions. Let us wait and see whether the future can bring more surprises!