\u3000\u3 Guocheng Mining Co.Ltd(000688) 109 Hangzhou Pinming Software Co.Ltd(688109) )
Event:
The company issued the annual report of 2021 and the first quarter report of 2022 after the closing on April 22, 2022.
Comments:
The smart construction site business continued to grow strongly, and the construction information software maintained steady growth
In 2021, the company achieved an operating revenue of 475 million yuan, a year-on-year increase of 25.17%. In terms of business segments: 1) smart construction site business: the revenue was 230 million yuan, with a year-on-year increase of 40.18%, and the proportion of revenue increased to 48.45%. The proportion of business outside Zhejiang Province of smart construction site has reached 75%, and the national layout has been preliminarily implemented, forming an overall layout focusing on five provincial centers, focusing on the development of 15 cities and radiating the surrounding potential markets. 2) Construction information software: the revenue was 245 million yuan, a year-on-year increase of 13.72%. In the field of cost business, the company launched the enterprise digital cloud platform “tea several cost cloud”, and the cost business continued to grow rapidly, with an overall growth rate of 19%; In the BIM business field, the company further consolidated the advantages of hibim in the deepening design of Electromechanical Specialty, and innovatively launched the intelligent prefabrication module and cable deepening module of machine room; In the field of construction business, the company continued to optimize and upgrade its products and achieved steady growth.
Increase investment around the company’s development strategy and business plan to promote sustainable development in the future
In 2021, the company realized a net profit attributable to the parent company of 63 million yuan, a year-on-year decrease of 35.81%, mainly due to the company’s continuous increase in channel expansion and marketing, strengthening the company’s brand construction and a significant increase in operation and promotion expenses around the development strategy and business plan; Vigorously promote the construction of talent team, especially the introduction and training of sales talents, R & D talents and management expert talents, and the salary of employees has increased significantly; The equity incentive plan was implemented and the share based payment fee increased. The company’s sales, management and R & D expense rates were 33.77%, 1.85% and 25.19% respectively. In terms of R & D, apaas platform has made a breakthrough in R & D; AI products further deepen the application ability of complex scenes; Add the research and development of BIM basic graphics platform and sprint for localization substitution.
22q1 business performance fluctuates in the short term, innovation and change, and actively overcome the impact of the epidemic
In the first quarter of 2022, the company achieved an operating revenue of 68 million yuan, a year-on-year decrease of 7.09%; The net profit attributable to the parent company was a loss of 25 million yuan. The main reason for the fluctuation of operating performance in the first quarter is that the company is affected by the repeated covid-19 epidemic and the seasonal characteristics of the industry. In terms of business segments, the overall construction information software business declined compared with the same period last year, in which the cost business was basically the same as that of the same period last year, and the Zhejiang market maintained growth; Construction business and BIM business decreased year-on-year. Smart site business is obviously affected by the epidemic. The company takes positive action, innovates and seeks change, launches “cloud observation” of smart construction site, meets the publicity and publicity needs of customers, updates the epidemic prevention related products on the construction site, overcomes the adverse impact of the epidemic on the operation, and the profitability is expected to gradually recover.
Profit forecast and investment suggestions
The company focuses on the applied technology and products of “digital construction” in the construction stage. By increasing R & D and market investment, the company continues to explore the blue ocean market and has a broad growth space. It is predicted that the operating revenue of the company from 2022 to 2024 will be 605, 783 and 1029 million yuan, the net profit attributable to the parent company will be 96, 125 and 165 million yuan, the EPS will be 176, 2.30 and 3.03 yuan / share, and the corresponding PE will be 19.22, 14.72 and 1.18 times. At present, the PE TTM of the computer (Shenwan) index is 38.8 times. Since the listing, the PE of the company mainly runs between 30-45 times. The company is given a target PE of 35 times in 2022, and the corresponding target price is 61.60 yuan. Maintain the “buy” rating.
Risk tips
Repeated outbreak of covid-19 pneumonia; Risk of loss of core technical personnel and leakage of core technology; Risk of concentration in sales area; The development of some software products depends on the basic software development environment provided by Autodesk.
