\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
On March 28, 2022, the company released its annual report for 2021, with an operating revenue of 5.562 billion yuan in 2021, a year-on-year increase of 40.92%. The net profit attributable to the parent company was 661 million yuan, with a year-on-year increase of 100.06%, and the net profit not attributable to the parent company was 651 million yuan, with a year-on-year increase of 115.93%.
In 2021q4, both revenue and profit increased, and the main expense rate was reasonably controlled. In 2021q4, the company achieved an operating revenue of 2.018 billion yuan, a year-on-year increase of 42%; The net profit attributable to the parent company was 186 million yuan, a year-on-year increase of 84%. In 2021, the company achieved good cost control, and the sales expense rate, management expense rate and R & D expense rate decreased by 3.1, 2.4 and 3.3 percentage points respectively year-on-year.
The cost business turns to cloud smoothly, and the cloud contract and cloud contract liabilities indicate good growth in the future. 1) Cloud Revenue: in 2021, the cloud revenue reached 2.561 billion yuan, a year-on-year increase of 58%, accounting for 67% of the cost revenue. 2) Cloud contract liabilities and cloud contracts: by the end of 2021, the company’s cloud contracts amounted to 3.1 billion yuan, a year-on-year increase of 39%; The balance of cloud contract liabilities was 2.047 billion yuan, a year-on-year increase of 36%. Cloud contract and cloud contract liabilities are important forward-looking indicators to observe the growth of cloud business. The high growth of these two indicators indicates that the company’s cloud business still has strong growth in the future. At the same time, the conversion rate of the four regions finally transformed in 2021 exceeded 60%, laying the foundation for the real success of cloud transformation. 3) Based on the basic cost business, multi-point expansion: Guangcai digital gathering, “indicator artifact” and other products continue to achieve breakthroughs in customers. At the same time, e-government continues to promote, the proportion of operation and maintenance revenue of public resource transaction management system continues to increase, and the market-oriented standard clearing products realize the rapid growth of revenue. They won the bid for the 103 million yuan project of Shenzhen smart government platform, realizing the full coverage of first tier cities in Beijing, Shanghai, Guangzhou and Shenzhen.
The newly signed contract amount of construction business was rapidly increased, and the growth rate of design business revenue exceeded 200%. 1) Construction business: in 2021, the operating revenue was 1.206 billion yuan, with a year-on-year increase of 28%. At the same time, the newly signed contract amount was rapid and large-scale. In 2021, 16000 new projects and 1600 new customers were added. A good breakthrough has been achieved in the head customers, and the group’s large-scale procurement model has been rapidly promoted. More than half of the labor, bill of materials and product contracts come from large-scale procurement. The rapid volume of newly signed contracts in the construction business is expected to lay an important foundation for future growth, and large-scale procurement is expected to become an important driving force for the growth of the company’s construction business. 2) Design business: in 2021, the operating revenue was 131 million yuan, with a year-on-year increase of 250.12%. By the end of 2021, the installed capacity of public beta versions of digital architectural design products had exceeded 1700.
At the same time, the company’s digital supply and procurement and other businesses continued to promote, and “square network” established 300000 supplier database information to help buyers’ customers solve 30000 needs and help more than 100000 sub suppliers connect their needs.
Investment suggestion: it is estimated that the company will achieve revenue of RMB 6.912/85.38/10.331 billion from 2022 to 2024, and the net profit attributable to the parent company will be RMB 976/12.89/1.698 billion respectively, and the corresponding PE will be 58x, 44x and 33x respectively. The average PE of Yonyou Network Technology Co.Ltd(600588) , Beijing Kingsoft Office Software Inc(688111) 22, the leader of cloud computing in the computer industry, is 71 times. The company has certain valuation advantages. Considering the long-term growth of the company, it maintains the “recommended” rating.
Risk tip: the downstream prosperity of the construction industry is lower than expected; The progress of new product research and development is less than expected.
