\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Key investment points
Event: the company released its annual report for 2021, realizing a total operating revenue of 5.62 billion yuan, a year-on-year increase of 40.3%; The net profit attributable to the parent company was 660 million yuan, a year-on-year increase of 100.1%. Revenue performance exceeded market expectations and profit growth was bright.
Although the gross profit margin declined, the effect of fee control was good, and the profitability of the company was improved. The company's comprehensive gross profit margin in 2021 was 84.0%, a year-on-year decrease of 4.54pp, mainly due to the output of smart city, construction implementation and other businesses with soft and hard solutions, which affected the gross profit performance. With the deepening of the company's cloud transformation, the burden on the expense side was reduced, and the sales expense rate, management expense rate and R & D expense rate decreased by 3.11pp, 2.39pp and 3.31pp respectively, boosting the rapid release of the company's profits.
The transformation of cloud cost is smooth and has entered the harvest period. The company's digital cost business achieved a revenue of 3.81 billion yuan, a year-on-year increase of 36.6%, exceeding market expectations. During the reporting period, the company signed cloud contracts of RMB 3.1 billion, a year-on-year increase of + 38.8%; The recognized cloud revenue was 25.6%, accounting for 67.2%. The last four regions of cost business, Jiangsu, Zhejiang, Anhui and Fujian, have begun to enter a comprehensive cloud transformation, with a conversion rate of more than 60% in the first year, which is a step higher than this; In 2020, the transformation rate of the transformed regions will reach 80% and the renewal rate will exceed 85%; In 20172019, the conversion rate and renewal rate in the transition areas exceeded 85%. We believe that the company is expected to basically complete the cloud transformation of cost business in 2022, and there is still broad room for improvement in subsequent penetration and ARPU.
The newly signed orders of construction business are fast and large-scale, and the integration of design business is completed and ready to go. 2021 company figures
The revenue from construction business was 1.21 billion yuan, a year-on-year increase of 27.8%. During the reporting period, the company added 16000 new projects and 1600 new customers. While realizing the rapid and large-scale contract amount, the company paid close attention to the delivery and ensured the transformation of income. In 2021, the company's digital design business realized a revenue of 130 million yuan, with a year-on-year growth rate of 250.1%. During the reporting period, the company successfully completed the comprehensive integration with Hongye Technology in R & D management, marketing channels, talent team and other aspects, and successively released bimspace2022 and digital architectural design products based on Glodon Company Limited(002410) independent graphics platform, further improved the full professional and full process integrated design solutions, and laid a good foundation for the subsequent realization of the whole process coordination of design, cost, construction, operation and maintenance.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the company's net profit attributable to the parent company from 2022 to 2024 will reach 37.8%.
The cloud transformation of the company's cost business is progressing smoothly, and the subsequent profits are expected to be released quickly; At the same time, the policy continues to catalyze the superposition of the endogenous needs of downstream enterprise customers, and the construction and design business is expected to usher in the rapid growth of orders. Using the segment valuation method, the company will be given 13 times PS for cloud business and 40 times PE for non cloud business respectively. The comprehensive target market value of the company in 2022 will be 81.56 billion yuan, with the corresponding target price of 68.54 yuan. It will be covered for the first time and given a "buy" rating.
Risk tip: the prosperity of the construction industry is declining; Product R & D progress is less than expected; The renewal rate of cost business is lower than expected; Intensified industry competition, etc.
