\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Event overview
Recently, Glodon Company Limited(002410) released the annual report of 2021, and achieved an annual operating 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%; The net profit deducted from non parent company was 651 million yuan, with a year-on-year increase of 115.93%. If the impact of cloud contract liabilities is restored, the annual operating revenue is 6.156 billion yuan, a year-on-year increase of 33.21%, and the net profit attributable to the parent is 1.144 billion yuan, a year-on-year increase of 29.19%. In 2021, the company continued to lead the development concept of digital construction industry and continuously improved the digital management level; The three major business lines made multi-point breakthroughs and achieved medium and high-speed growth.
The cloud transformation of cost business exceeded expectations, and the basic market advantage has been stable for a long time
The company’s digital cost business realized an operating revenue of 3.813 billion yuan in 2021, with a year-on-year increase of 36.64%, accounting for 68% of the company’s total revenue. Among them, the cloud revenue of cost business was 2.561 billion yuan, a year-on-year increase of 57.91%, accounting for 67.15% of cost business from 58.12% in 2020. The subscription mode improves the cost performance of products and services. The application rate of data services such as cloud pricing, cloud computing volume main products and engineering information, guangcai.com and Guangcai assistant has broken through a new high, which has driven the improvement of customer satisfaction, transformation rate and renewal rate. In 2021, the company launched the cloud transformation in the last four regions of China (Jiangsu, Zhejiang, Anhui and Fujian); By the end of 2021, the cost of cloud transformation has exceeded 85% of the national target, and the cost of cloud transformation has exceeded the national target; In 2021, the conversion rate and coverage of the four regions that finally started the transformation exceeded 60%, and the positive growth of restored income was realized for the first time in the year of transformation. In the future, the company will fully start the transformation of its business from cost line to cost line, further deepen the cloud transformation and expand cost products in the field of infrastructure. There is still a large space for the development of cost business.
The newly signed contracts and platform products of construction business lay the foundation for high growth in the future
The company’s digital construction business achieved an operating revenue of 1.206 billion yuan in 2021, with a year-on-year increase of 27.82%, accounting for 21% of the company’s total revenue. There are two highlights in the construction business segment: one is the rapid volume of newly signed contracts. Driven by the strategy of “expanding the contract in the first half of the year, expanding the increment, and implementing the delivery guarantee and payment collection in the second half of the year”, the construction business of the company achieved large-scale expansion in 2021. According to the disclosure of the annual report, by the end of 2021, the cumulative number of service items of digital construction project level products has exceeded 55000, and the cumulative number of service customers has exceeded 5000; In 2021, 16000 new projects and 1600 new customers were added. Second, the construction of platform products has been continuously promoted and the service effect has begun to show. In 2021, the business center completed the 2.0 component architecture upgrade; The data center has completed the construction of master data management system and data management system, and issued 150 + data standard interface; The technology center realizes the upgrading from project level support to project enterprise integrated support, meeting the system integration needs of 700 + tenants; AI Zhongtai CV algorithm continues to focus on the construction industry; More than 100 kinds of knowledge specifications / standards are covered in the knowledge medium knowledge map, and the dialogue Siasun Robot&Automation Co.Ltd(300024) and contract Siasun Robot&Automation Co.Ltd(300024) algorithms are precipitated by NLP technology, which are constantly verified in project level and enterprise level products. According to the disclosure of the annual report, with the enabling of the management platform, the company’s smart material module has saved 3% of the material cost for customers on average. The smart labor module has served more than 8 million industrial workers in total. The digital infrastructure command and dispatching platform has served multiple model customers, and the zebra progress module has added more than 180000 users. Bimmake module has built a demonstration project of Shenzhen super high-rise project of China Construction Third Bureau. We believe that the company’s construction business may usher in an inflection point of scale and volume on the basis of high new contracts signed in 2021 and the initial appearance of energy efficiency of platform products.
Design business integration, complete the release of new products, and make multi-point breakthroughs in innovative business
In 2021, the company’s digital design business officially completed the integration with Hongye Technology, with an annual operating revenue of 131 million yuan, a year-on-year increase of 250.12%, accounting for 2% of the company’s total revenue. The integrated team sharing channel and marketing system have improved customer satisfaction from multiple perspectives such as product quality management, brand management and service management. In October 2021, the company officially released the digital architectural design products based on Glodon Company Limited(002410) independent graphics platform (stand-alone public beta version) in the field of housing construction. By the end of 2021, the installed capacity of the public beta version of digital architectural design products has exceeded 1700. This year, the company is expected to accelerate the research and development of structures, electromechanical, components and collaborative products, and create an architectural design solution integrating full professional design and construction cost. In terms of innovative business, the company’s business units such as digital city, digital supply and procurement, digital finance and digital universities made multiple breakthroughs, and achieved an operating revenue of 259 million yuan in 2021, with a year-on-year increase of 815.12%.
Investment advice
Glodon Company Limited(002410) as the absolute leader in the field of China State Construction Engineering Corporation Limited(601668) cost, is accelerating its growth into a leader and enabler of the digital construction industry. It has multiple attributes such as digital transformation, cloud transformation and domestic substitution. It has broad growth space, business model optimization and enjoys a certain valuation premium in the future. It is estimated that the revenue growth rate of the company from 2022 to 2024 will be 24.0% / 22.1% / 21.6% respectively, and the growth rate of net profit attributable to the parent company will be 29.7% / 29.9% / 22.8% respectively, maintaining the investment rating of buy-a. Give a six-month target price of 70.25 yuan, equivalent to 12 times the dynamic market sales rate in 2022.
Risk warning: the promotion of construction business is not as expected; The increase of customer unit price of cost business is less than expected.
