\u3000\u3000 Shenzhen Capol International&Associatesco.Ltd(002949) (002949)
It is proposed to cooperate with domestic and controllable BIM {6883} in the field of independent development. The company announced that it plans to establish a joint venture with Zwsoft Co.Ltd(Guangzhou)(688083) to carry out domestic BIM product R & D and software sales, of which the company invested 15 million yuan, accounting for 30%. The BIM business of the company has experienced 13 years of exploration, 9 years of positive BIM design and promotion, 5 years of BIM application software research and development, and more than 30 million square meters of BIM project practice. It has rich application scenarios in the construction industry and strong application software research and development strength. Huayang ibim v3 0 system platform can realize rich functions such as rapid design modeling, automatic cost generation, digital construction management and so on. Subsequently, the company will fully open “application scenarios and experience in the construction industry” to the joint venture and authorize the use of developed application components. Zwsoft Co.Ltd(Guangzhou)(688083) has leading geometric kernel, constraint solving and many other core technologies at the bottom of independent industrial software. In the future, it will provide the joint venture with “Wukong 3D kernel modeling technology” as technical support. BIM platform software is the core foundation of the digital and information transformation of the construction industry. However, at present, such software in China is monopolized by large software developers in Europe and America. This time, the company cooperates with Zwsoft Co.Ltd(Guangzhou)(688083) and empowers each other to develop domestic BIM platform software with strong competitiveness, which is expected to help solve the problems of independent control and “neck” in the industry and create a new business growth point of the company.
Digital transformation continues to advance, and it is expected to focus on benefiting from BIM demand expansion in the future. The company has also recently signed a strategic cooperation agreement with Wanyi technology, a wholly-owned subsidiary of Vanke engaged in real estate technology research and development. It plans to cooperate in AI drawing review in the form of CAD, data docking between AI drawing review platform and capol ibim platform, AI enabled design scenario, BIM cooperative research and development, which will help the company’s ibim platform to continuously optimize and promote digital and intelligent transformation. At present, China continues to actively promote the development of building informatization. The first column in the 14th five year plan for the development of construction industry issued by the Ministry of housing and urban rural development is “integrated application of BIM Technology”. At the same time, the implementation opinions on accelerating the application of building information model (BIM) (Trial) issued by Shenzhen municipal government focuses on: 1) from 2022, BIM Technology Application (design, construction, operation and maintenance, etc.) will be fully implemented in new urban government investment and state-owned capital investment construction projects, major urban projects and key area engineering projects; 2) From 2023, BIM Technology will be fully implemented in all new construction projects in the city. At present, Shenzhen accounts for a relatively high proportion of the company’s revenue. With the company’s continuous promotion of digital transformation, it is expected to fully benefit from the rapid increase of BIM demand in Shenzhen.
Speed up the construction of affordable housing and strengthen the growth momentum of leaders in affordable housing design. At the end of last year, the central economic work conference pointed out that “we should adhere to the simultaneous development of rent and purchase, accelerate the development of long-term rental housing market and promote the construction of indemnificatory housing”. All localities have also successively issued relevant plans for the 14th five year plan. On January 20, this year, the working conference of the Ministry of housing and urban rural development pointed out that “we should adhere to the simultaneous development of rent and purchase, and raise 2.4 million indemnificatory rental housing this year”. The raising target increased by 156% compared with last year, and the development of affordable rental housing is expected to enter the acceleration period. We believe that ensuring housing construction can stabilize investment in the real estate industry in the short term, which is expected to become one of the important directions of steady growth this year. In the long term, it is also an important focus to achieve the two goals of “housing without speculation” and “common prosperity”. The industry is expected to show excellent growth in the medium and long term. We estimate that about 7.4 million affordable rental housing units are expected to be raised nationwide during the 14th Five Year Plan period. The construction and installation investment is expected to be about 240 billion yuan in 2022, and the prosperity of relevant construction fields is expected to accelerate. The company is a leading enterprise in the field of affordable housing design with rich project experience. In 2020, the design income related to affordable housing is about 200-400 million yuan, accounting for 10% – 20% of the total revenue. It is expected to benefit from the acceleration of affordable housing construction in China in the future.
Investment suggestion: we predict that the net profit attributable to the parent company in 2021-2023 will be 105 / 252 / 311 million yuan respectively, with a year-on-year change of – 39% / + 140% / + 23% (CAGR in 2020-2023 is 21%), the corresponding EPS is 0.54/1.29/1.58 yuan, and the current share price corresponds to 34 / 14 / 12 times of PE, maintaining the “buy” rating.
Risk tips: credit impairment loss risk, real estate industry policy risk, BIM business expansion less than expected risk, cross regional operation risk, etc
