\u3000\u3 Shengda Resources Co.Ltd(000603) 018 China Design Group Co.Ltd(603018) )
Q4 performance accelerated recovery, and R & D continued to increase to help digital transformation
The company released its annual report for 21 years. 21fy achieved an operating revenue of 5.822 billion yuan, a year-on-year increase of + 8.74%, and newly signed contracts of 10.686 billion yuan (1.84 times of revenue), a year-on-year increase of + 4.42%; The net profit attributable to the parent company was 618 million yuan, a year-on-year increase of + 6.10%; Deduct the net profit not attributable to the parent company of 599 million yuan, a year-on-year increase of + 6.53%. Quarter by quarter, the revenue of 21q1-4 company was + 40% / - 6% / - 13% / + 20% year-on-year, and the net profit attributable to the parent company was + 34% / - 7% / - 27% / + 22% year-on-year. After the impact of the epidemic, Q4's revenue and profit showed an accelerated recovery trend. The gross profit margin of 21fy was 31.86%, with a year-on-year increase of -1.12pct; The expense rate during the period was 14.87%, with a year-on-year rate of -0.14pct, of which the expense rate of sales / management / R & D / finance was 4.30/6.23/4.36 / - 0.02%, with a year-on-year rate of -0.23 / - 0.08 / + 0.16 / + 0.01pct; The net cash flow from operation / investment / financing was 392 / - 134 / - 98 million, with a year-on-year increase of - 12 million / - 38 million / + 164 million. The year-on-year increase in investment cash flow was mainly due to the investment of new associated enterprises, and the year-on-year increase in financing cash flow was mainly due to the increase in short-term borrowings of banks.
Steady growth of main business and simultaneous development of multiple strategies to ensure the sustainability of orders
In terms of business structure, the revenue of survey and design / planning research / project contracting was RMB 3.658/7.36/697 billion, with a year-on-year increase of + 14% / - 23% / 21%, a gross profit margin of 35% / 37% / 22%, and a year-on-year increase of + 0.88 / - 5.64 / + 7.34pct. The newly signed contracts exceeded 10 billion yuan for two consecutive years, and the business continuity was guaranteed. In 2021, the total amount of survey and design contracts was 7.199 billion yuan, a year-on-year increase of + 2.09%, and multiple strategies were adopted to ensure the sustainability of orders: 1) deep cultivation of key areas, the survey and design contracts in the Yangtze River Delta were 4.59 billion yuan (accounting for 64%), a year-on-year increase of + 14.2%. 2) The development outside the province focuses on key customers in key regions. The performance of Guangdong Province has maintained more than 400 million yuan in recent three years, and the performance of other provinces has exceeded 100 million yuan; Key customers account for more than 60%, and the continuity of business is guaranteed; 3) The relevant survey and design projects brought by the planning business account for more than 50%, and the customer stickiness continues to strengthen.
New businesses are growing rapidly and digital transformation is progressing smoothly
In 2021, the total operating income of the company's new business reached 942 million yuan, including 390 million yuan for digital intelligence and 552 million yuan for green low-carbon. BIM + GIS enabled the company to achieve a contract value of 930 million (260 million technology led + 670 million production platform), which strongly supported the company's digital transformation; The eicad system independently developed by the group has fully realized SaaS, with an average annual sales revenue of + 100% in recent three years; Huashi Yancheng intelligent manufacturing company (MES + Digital twin factory) has been completed and achieved mass production. At present, it has provided prefabricated bridge components for the reconstruction and expansion project of Beijing Shanghai Expressway, Jianxing Expressway and the north extension of Xingchuang road in Yancheng, with a cumulative output of nearly 70000 m3 of concrete and an operating revenue of 200 million yuan.
The foundation for sustained and steady growth is solid, and the "buy" rating is maintained
We believe that the company has a solid foundation for steady growth and rapid growth of new businesses. We are optimistic about the continuous transformation of the company's follow-up business. We expect the EPS to be 1.06/1.25/1.45 yuan in 22-24 years. Referring to the current comparable company's 22-year wind consensus, we expect the average PE to be 12.7 times. It is recognized that the company will be given 10 times PE in 22 years, corresponding to the target price of 10.6 yuan, and maintain the "buy" rating.
Risk warning: the order execution is less than expected, the improvement of human efficiency is less than expected, and the impact of EPC on cash flow is more than expected.
