\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Investment Event: on March 28, the company released its 2021 annual report. In 2021, the company achieved a revenue of 5.619 billion yuan, with a year-on-year increase of 40.32%. After restoration, the revenue was 6.156 billion yuan, with a year-on-year increase of 33.21%; The net profit attributable to the parent company was 661 million yuan, with a year-on-year increase of 100.06%. After reduction, the net profit attributable to the parent company was 1.144 billion yuan, with a year-on-year increase of 29.19% in the same caliber; Excluding the impact of financial business, the net operating cash flow was 1.65 billion yuan.
The cloud transformation was comprehensively deepened, and the marketization of cost products was further: during the reporting period, the company's digital cost business revenue was 3.813 billion yuan, a year-on-year increase of 36.64%. After adjustment and restoration, the revenue was 4.353 billion yuan, a year-on-year increase of 27.90%, and the performance slightly exceeded expectations. During the reporting period, the last four regions of cost business, Jiangsu, Zhejiang, Anhui and Fujian, achieved positive growth in income after restoration in the year of transformation, and the conversion rate exceeded 60%, setting a new high in the first year of transformation; At the same time, the conversion rate and renewal rate of the transformed old areas will remain at a high level in 2021. Under the background of the market-oriented transformation of cost, the company's market-oriented pricing products have been officially applied by many state-owned investment pilot projects, and new progress has been made in Guangcai data gathering, indicator artifact and indicator network; The whole series of measurement products are also continuously exploring the transformation from "budget" to "whole process". In September, the company won the bid for the 103 million yuan project of Shenzhen smart government platform, realizing the full coverage of the business in the four first tier cities.
The contract and delivery increased rapidly, and the value implementation of project + enterprise products continued to deepen: during the reporting period, the company's digital construction business revenue was 1.206 billion yuan, with a year-on-year increase of 27.82%. The newly signed contracts also increased rapidly and maintained high growth. Overall, by the end of 2021, the cumulative number of service items of construction project level products has exceeded 55000, and the cumulative number of service customers has exceeded 5000; Among them, 16000 new projects and 1600 new customers were added in 2021, with an average of 10 new projects for each new customer. The construction products continued to cultivate the high penetration of customers. New progress has been made in the two core product businesses of materials and labor services. Under the group's large-scale procurement mode, more than half of the labor and bill of materials product contracts come from large-scale procurement; Smart materials cover the material management of more than 7000 projects of hundreds of enterprises, while smart labor services have served more than 8 million industrial workers, covered more than 10000 engineering projects, and connected with more than 100 administrative departments. On the construction cloud product line, zebra added 180000 users throughout the year, covering more than 70000 projects. In terms of enterprise products, among the new contracts signed in the whole year, the enterprise and project enterprise integrated solution contracts accounted for about 15%, and a rapid breakthrough was achieved in the head customers. Enterprise level solutions form in-depth cooperation with a number of industry leaders and release different system platforms for customers of different sizes. Under the background of high increase in contract and delivery, the project + enterprise products of the company's construction business have made continuous breakthroughs, its value has been comprehensively deepened and implemented, and the second growth curve has gradually solidified.
Integrate Hongye to form a unified digital design brand, and open batch public testing of digital design products: during the reporting period, the company's digital design business revenue was 131 million yuan, with a year-on-year increase of 250.12%, initially forming a certain large-scale revenue. During the reporting period, the company successfully completed the integration with Hongye Technology, formed a unified brand of digital design, gave full play to the role of Hongye's original channels and marketing system, and expanded the influence of the company's digital design. On the product side, in October, the company officially released digital design products (single public beta version). By the end of 2021, the installed capacity of public beta version of digital architectural design products has exceeded 1700, realizing large-scale batch public beta. The company's design business integration + self-research parallel has preliminarily created the path of the third growth curve in the future.
R & D investment remained at a high level and scientific research achievements were constantly transformed: during the reporting period, the company accelerated forward-looking technology layout and integrated innovation exploration, with an annual R & D investment of 1.626 billion yuan, accounting for 29.23% of revenue. During the reporting period, the company accelerated the exploration of forward-looking technology layout and integration innovation, and continued to make breakthroughs in key fields such as graphics, AI and industry open platforms. During the reporting period, the company added 5 new invention patents, 80 newly registered software copyrights and 168 newly registered trademarks, and the scientific research investment was continuously transformed into achievements, providing support and impetus for the company's subsequent product and business iterations.
Investment suggestion: the transformation of the company's cost cloud is further deepened, the construction business has achieved a major breakthrough, and the volume of business revenue and output in the future can be expected. However, the volume of construction business puts pressure on the company's profitability in the short term. Based on this, we adjusted the company's revenue and profit forecast for 2022 and 2023, and added the revenue and profit forecast for 2024. We predict that the company's revenue from 2022 to 2024 will be 6.825/84.83/10.231 billion yuan respectively (the original value in 2022 and 2023 will be 6.551/8.263 billion yuan), the net profit attributable to the parent company will be 972/13.27/1.601 billion yuan respectively (the original value in 2022 and 2023 will be 9.83/1.401 billion yuan), and the EPS will be 0.82/1.11/1.34 yuan respectively (the original value in 2022 and 2023 will be 0.83/1.18 yuan), and the corresponding PE will be 60 / 44 / 36 times respectively, maintaining the "buy" rating.
Risk tip: the prosperity of the construction industry is declining and the informatization progress is less than expected; The release rhythm of construction business needs is delayed; The breakthrough of digital design business technology has encountered bottlenecks.
