20230705-招银国际-宏信建发-09930.HK-No.1_equipment_operation_service_provider_ready_to_capture_the_opportunities_in_AWP_50页_3mb

Horizon Construction Development is a leading equipment operation service provider in China, specializing in integrated services like aerial work platforms (AWP). The report recommends a BUY rating with a target price of HK$4.80. Key market drivers include rising demand from urbanization, aging population (12% in 2018 to 14.9% in 2022), and safety standards, projected to grow the equipment operation market to RMB1,593bn by 2027. Horizon's strengths include a nationwide service network with 349 outlets, high market share in AWP (30.6% in revenue terms), and digital capabilities, resulting in blended gross margins stabilizing at 45-46% by 2025E. Financially, revenue is expected to grow at 25% CAGR from 2023E, with net profit at 21% CAGR. Risks include economic downturns, fierce competition, and utilization rate fluctuations. The valuation uses a 15x 2023E P/E, compared to peers like Huatie at ~11x. Growth strategies involve expanding service outlets and digitalization, while risks highlight dependence on industrial trends and policy changes.