\u3000\u3000 Shenzhen Capol International&Associatesco.Ltd(002949) (002949)
The company announced to overweight Bim and take the next step in technological transformation
On February 17, 2022, the company announced that it had signed a joint venture agreement on establishing a joint venture with China’s leading CAD company Zwsoft Co.Ltd(Guangzhou)(688083) to jointly establish a joint venture to carry out domestic BIM product R & D and software sales, of which the company invested 15 million yuan, with a share ratio of 30%. In addition to the transformation of Huayang’s “BIM + design” business model to the “BIM + design” business, we believe that Huayang’s “BIM + design” business model will be fully improved in the follow-up market, It is expected to achieve a rapid breakthrough in the field of BIM software. The company’s main business is expected to maintain steady growth in the future, and new business is expected to bring a new growth pole.
Carry out BIM cooperation in depth and continue to promote digital transformation and upgrading
Huayang is at the leading level in the field of BIM application and development. The company’s secondary development includes mapping and modeling, performance quality inspection, visualization and cloud platform release audit. At the same time, it has a self-developed BIM family library management platform. The company carries out application level development based on the underlying graphics platform, and the urban technology company team of more than 100 people ensures the rapid iteration of the software, further consolidating the advantages of Huayang. As the leader of CAD in China, Zhongwang’s underlying software promotion needs the cooperation of application level development. Its choice of Huayang fully proves the leadership of Huayang.
Independent bottom software addition, BIM promotion is expected to accelerate significantly
Over the past 21 years, with the accelerated implementation of BIM top-level policy, the company has accelerated its own software promotion. Previously, it reached a strategic cooperation with Vanke Wanyi to promote Huayang ibim design management system in Vanke project, demonstrating the company’s ability and determination to layout BIM. In this cooperation, the company’s BIM products are expected to truly realize the complete autonomy of bottom + applications, thus solving a major pain point of wide promotion. The promotion of BIM application of subsequent companies is expected to speed up, so as to seize the first opportunity in the industry.
Impairment provision is light, optimistic about sustainable growth and maintain the “buy” rating
The company’s design business is expected to continue to benefit from the high boom of affordable housing and prefabricated buildings in the future. In the past 21 years, the company has carried out centralized impairment on the receivables of risk customers, and it is expected to be light in the future. We believe that the logic of the company improving its design human effect ceiling through BIM application and continuously improving its market share through design ability is still expected to continue in the future. At the same time, the rapid development of software development, the iterative development of software, the positive feedback logic of the final achievement of the advanced nature of software development has begun to materialize, and the subsequent software commercialization is expected to create the second growth curve of the company. The company issued the performance forecast for 21 years and made bad debt provision for individual customers, resulting in a certain decline in the company’s profit. We expect the performance of the company in 21-23 years to be RMB 100 / 250 / 320 million, corresponding to pe36 / 14 / 11 times. The new business is expected to bring significant valuation improvement. It is given 22 years 24 times PE, corresponding to the target price of RMB 30.4, and maintain the “buy” rating.
Risk warning: the volume and execution of orders are not as expected; The new construction area of real estate is less than expected; The impact of EPC on cash flow is higher than expected; The content of the announcement has not been implemented and is uncertain.
