\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
The company released the financial report for 2021, realizing an operating revenue of 5.619 billion yuan (+ 40.32%), a gross profit margin of 83.95%, a net profit margin of 12.92%, and a net profit attributable to the parent company of 661 million yuan, a year-on-year increase of 100.06%.
Key points supporting rating
Significant achievements have been made in the transformation of cost cloud, driving the rapid growth of revenue. In 2021, digital cost business achieved revenue of 3.813 billion yuan (+ 36.64%), cost cloud contract of 3.1 billion yuan (+ 38.77%), and recognized cloud revenue of 2.561 billion yuan, accounting for 67.15% of cost business revenue. During the reporting period, the company’s cloud transformation progressed smoothly, with the transformation rate of new transformation areas exceeding 60%, and the transformation rate and renewal rate of transformation areas in previous years were more than 80%. After restoring the balance of cloud contract liabilities, the revenue was 4.353 billion yuan, an increase of 27.90% year-on-year.
Digital construction has increased significantly and the design business has performed brilliantly. Digital construction business achieved a revenue of 1.206 billion yuan (+ 27.82%); 16000 new projects and 1600 new customers were added. The rapid expansion of project level BIM + smart site contract and the accelerated delivery of construction business have promoted the rapid growth of revenue. The digital design business has successfully completed the integration with Hongye Technology, expanded its brand influence, achieved a revenue of 131 million yuan (+ 250.12%), and the proportion of revenue has increased from 0.95% to 2.35%.
Q4 performance exceeded expectations and cash flow grew healthily. The company’s Q4 revenue reached 2.006 billion yuan, a year-on-year increase of 43.07%, and the net profit was 206 million yuan, a year-on-year increase of 70.13%. The net operating cash inflow was 1.601 billion yuan (- 14.65%), mainly due to the strategic adjustment of financial business in the same period of last year and the recovery of some loans and advances. After excluding this impact, the net cash flow from operating activities was 1.65 billion yuan (+ 8.57%).
Valuation
It is estimated that the net profit from 2022 to 2024 will be RMB 985 million, RMB 1239 million and RMB 1658 million, EPS will be RMB 0.83, RMB 1.04 and RMB 1.39 (due to the smooth progress of cloud cost transformation, the upper repair is 2% ~ 8%), and the corresponding PE will be 60x, 48x and 36x, maintaining the buy rating.
Main risks of rating
The progress of cost cloud transformation is less than expected; Contract expansion is less than expected; Construction delivery is not as expected.
