\u3000\u30003 Bichamp Cutting Technology(Hunan) Co.Ltd(002843) 00284)
In 21 years, the revenue was under pressure, the profit growth highlighted the management level, and maintained the “overweight” rating
On the evening of April 18, 22, the company released its 2021 annual report. 21fy achieved a revenue of 5.119 billion yuan, a year-on-year increase of – 6.91%, of which q1-4 single quarter revenue was + 23.9% / – 25.4% / – 13.7% / + 1.0%. It is speculated that the poor revenue performance was mainly affected by the epidemic. The net profit attributable to the parent company was 472 million yuan, a year-on-year increase of + 21.53%, and the deduction of non net profit was + 27.23%. Under the background of income pressure, the company strengthened cost control and project selection, achieved a year-on-year increase of more than 20% in profits, reflecting excellent business management level. We believe that the company will firmly develop the main business of engineering consulting, and is expected to continue to maintain breakthroughs in new fields, provide an important guarantee for the 25-year 10 billion plan, and maintain the “overweight” rating.
Over the past 25 years, the revenue of consulting business is expected to reach 10 billion, and the traditional main business is expected to be solidly promoted
In terms of splitting, the revenue of engineering consulting / engineering contracting was 4.85/250 billion, with a year-on-year increase of – 3.5% / – 45.0%. The engineering contracting business fell more, which is speculated to be mainly due to the strategic reduction of this business. The company plans to achieve a revenue of 10 billion yuan in 25 years of consulting business, with CAGR of 21-25 years + 19.8%. If the total revenue of 21 years is taken as the base, CAGR of 21-25 years + 18.2%. We believe that the company has made solid progress in its traditional main business, and expanded tic, smart transportation, urban renewal, underground space development, comprehensive industrial development, comprehensive ecological management and other businesses around the active layout of “double carbon”, smart city and rural revitalization, providing support for the realization of the 25-year revenue target.
The decrease of expense rate combined with the increase of gross profit margin continued to improve the operation and management
In 21, the company’s gross profit margin was 38.27%, year-on-year +2.44pct, while the sales / management / R & D / financial expense ratio was 2.04%/10.91%/4.19%/1.64% respectively, with a year-on-year change of +0.33/+1.36/-0.13/-1.76pct, and asset and credit impairment loss of 410million yuan, accounting for 8.00% of revenue, year-on-year +0.02pct. Under the comprehensive impact, the net interest rate attributable to the parent company was 9.22%, with a year-on-year increase of + 2.16pct. The net CFO was 87 million yuan, with a year-on-year increase of – 697 million yuan, mainly due to the increase in cash paid by the company for purchasing goods and receiving labor services, and the increase in contract assets. In 21 years, the company’s cash to cash ratio was 93.95%, year-on-year + 2.18 PCT, cash to cash ratio was 57.98%, year-on-year + 15.85 PCT;, The debt ratio was 46.53%, with a year-on-year increase of -15.32pct, and the debt level decreased. The total asset turnover rate was 0.35 times, with a year-on-year decrease of -0.05 times. Overall, the overall profitability and quality of the company continued to improve, and the cost control was good.
New businesses are expected to continue to increase in volume and maintain the “overweight” rating
Under the background of steady growth and recovery of infrastructure prosperity, we believe that the company’s new businesses such as comprehensive testing, environment and intelligent transportation are expected to achieve rapid growth in 22 years. However, considering the large base of traditional main businesses and the time needed to increase the proportion of new businesses, we slightly lower the company’s net profit attributable to the parent company in 22-24 years to RMB 570 / 66 / 750 million (the value was RMB 580 / 660 million before 22-23 years) and maintain the “overweight” rating.
Risk warning: the impact of the epidemic on the operation exceeded expectations, the development of new business was less than expected, and the progress of main business integration was less than expected.
