\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Major events
The company released its annual report for 2021, and achieved a revenue of 5.619 billion yuan, a year-on-year increase of 40.32%; The net profit attributable to the parent company was 661 million yuan, a year-on-year increase of 100.06%. In 2021q4, the revenue was 2.018 billion yuan, a year-on-year increase of 42.48%, and the net profit attributable to the parent company was 186 million yuan, a year-on-year increase of 84.47%.
Key investment points
After the restoration of cloud contract liabilities, the total revenue increased by 33%, and the growth rate of revenue exceeded market expectations
By the end of 2021, the balance of contract liabilities related to cloud transformation of the company had increased to 2.047 billion yuan (end of 2020: 1.551 billion yuan). If the influencing factors of cloud contract liabilities were restored, the restored revenue would be 6.156 billion yuan, with a year-on-year increase of 33.21% (growth rate in 2020: 14.97%); The net profit attributable to the parent company after reduction was 1.144 billion yuan, with a year-on-year increase of 29.19% (growth rate in 2020: 32.89%). The growth rate before and after the restoration of revenue in 2021 exceeded market expectations, reflecting the remarkable results of the “August 3” strategic planning and implementation. Looking forward to 2022 (“the year of the end of August 3”), the company’s strategic transformation dividend is expected to continue to show.
The transformation of digital cost cloud has completed nationwide coverage, and the application rate of main products has reached a new high after the transformation
In 2021, the revenue of digital cost business was 3.813 billion yuan, with a year-on-year increase of 36.64%. After restoring the balance of cloud contract liabilities, the revenue was 4.353 billion yuan, with a year-on-year increase of 27.90%. Cloud contracts signed during the reporting period amounted to RMB 3.1 billion, with a year-on-year increase of 38.77%. Cloud contract liabilities at the end of the period amounted to RMB 2.047 billion, an increase of RMB 537 million compared with the beginning of the year. The cloud revenue recognized during the reporting period was 2.561 billion yuan, accounting for 67.15% of the cost business revenue (2020: 58.12%). In 2021, the cloud transformation of cost business covers the whole country. The subscription mode improves the cost performance of products and services, and the application rate of cloud pricing, cloud computing volume main products and engineering information data services has reached a new high. By the end of 2021, the conversion rate and renewal rate of the transition regions had exceeded 85% in 2017 and 2018, the conversion rate and renewal rate of the transition regions had exceeded 85% and 90% in 2019, the conversion rate of the transition regions had reached 80% and the renewal rate had exceeded 85% in 2020, and the conversion rate of the new transition regions had exceeded 60% in 2021, which was further improved compared with the first year of the previous transition regions.
The number of digital construction contracted projects has increased rapidly and in large quantities, and the value of main products has been continuously implemented
In 2021, the digital construction business achieved a revenue of 1.206 billion yuan, with a year-on-year increase of 27.82%. The newly signed contract amount increased rapidly and achieved rapid growth. By the end of 2021, the number of digital construction project level products and service projects has exceeded 55000 (2020: 38000), and the number of service customers has exceeded 5000 (2020: 3400); In 2021, 16000 new projects and 1600 new customers were added. Among the newly signed contracts in the whole year, the enterprise and project enterprise integrated solution contracts and project level BIM + smart site contracts accounted for about 15% and 85% respectively. More than 7000 projects of intelligent material management have been implemented, and more than one million projects of intelligent material management have been formed, covering a total of more than one hundred industries, with a total value of more than one million products.
The revenue of digital construction increased by 250% year-on-year, with obvious synergy after integration with Hongye
In 2021, the digital design business achieved a revenue of 131 million yuan, a year-on-year increase of 250.12%. The company’s digital design business has been integrated with Hongye Technology. The integrated team shares channels and marketing system, which improves customer satisfaction from multiple perspectives such as product quality management, brand management and service management, and has obvious business synergy. The company launched a new version of bimspace2022 and digital architectural design products (single machine public beta version). By the end of 2021, the installed capacity of public beta versions of digital architectural design products had exceeded 1700.
Profit forecast and valuation
In 2021, the revenue growth exceeded market expectations, the cost cloud transformation continued to deepen, the digital construction projects were rapidly and in large quantities, the design business was integrated, the synergy effect appeared, and the future strategic promotion trend was better. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 953 million yuan, 1253 million yuan and 1631 million yuan respectively; The corresponding EPS is 0.80, 1.05 and 1.37 yuan, maintaining the “buy” rating.
Risk tips
The digital transformation of the construction industry is less than expected, and the development of digital construction, design and innovation business is less than expected.
