Dayu Water-Saving Group Co.Ltd(300021) (300021)
The national replication promotion has achieved remarkable results, and the on-hand orders have continued to grow rapidly
The company continues to summarize, repeat, summarize and upgrade iteratively on the basis of existing models and schemes, continue to lead the innovation and upgrading of industry models in the field of “agriculture, rural areas and water”, and provide customers with effective and win-win integrated solutions covering planning, design, construction, products, technology, operation services, investment and financing. The company concentrated advantageous resources, further upgraded and iterated the product manual of “EPC + O” mode, and innovated to form the manual of “integrated solutions for modern irrigation areas”. The advantages of mode innovation have become more prominent and the operation service capacity has been continuously improved. In 2020, the company signed orders of RMB 4.971 billion, an increase of 136% over 2019; As of October 26, 2021, the company had signed 4.838 billion new orders, an increase of 62% over the same period last year. On the basis of the high growth of newly signed orders in 2020, there was a large growth. Abundant orders provided a strong guarantee for the growth of revenue.
Technological innovation ensures the company’s leading edge, and all-round strategic cooperation with Huawei is steadily advancing
Huitu technology is a smart water conservancy and Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) professional group company under Dayu Water-Saving Group Co.Ltd(300021) and carries the platform function of the information network in the “three networks integration” mechanism of the company’s water network, information network and service network. Since huitu technology was integrated into the whole industrial chain of the company, huitu technology and Dayu Water-Saving Group Co.Ltd(300021) have been deeply integrated, and the collaborative value has been gradually released. At present, huitu technology is facing a good development situation: as of October 26, 2021, huitu technology has signed 399 million new orders this year, an increase of 4% over the same period last year; The payment received was 251 million, an increase of 39% over the same period last year. In addition, the company signed a strategic cooperation agreement with Huawei. Based on the key cooperation fields such as smart water conservancy, agricultural water saving, rural sewage and farmers’ drinking water, the company is each other’s priority partner to jointly carry out comprehensive cooperation in four aspects: joint market development, joint technology and Market Research, continuous innovative application of advanced technology and localization of key information infrastructure.
The leader in the field of modern agriculture and water welcomes the development opportunity, and the future performance is expected to continue to grow
The company’s business has expanded from water-saving irrigation to intelligent water affairs, sewage treatment, safe water supply, water ecological restoration and other fields. It is a system solution integration provider integrating regional ecological planning, design, project construction, product supply and intelligent project operation services. The company has significant advantages in the industrial chain, and has preliminarily completed the national market layout through cooperation with local water companies and water investment companies in recent years. Under the background of increasing agricultural and rural investment, the company’s orders continue to grow rapidly, laying a solid foundation for the sustained growth of future performance.
Profit forecast and investment suggestions
As the epidemic affected the project progress, we adjusted the company’s profit forecast. It is estimated that from 2021 to 2023, the net profit attributable to the parent company will be RMB 151 / 242 / 327 million (the value before 2021-2022 will be RMB 305 / 448 million), with a year-on-year increase of 53% / 60% / 35%, corresponding to 30 / 19 / 14 times of PE, maintaining the “buy” rating.
Risk tips: changes in national policies; The landing of the company’s orders was less than expected; Entry of foreign competitors
