\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Matters:
The company announced that in the first quarter of 2022, the total operating revenue in the first quarter of 2022 was 1.131 billion yuan, a year-on-year increase of 33.21%, the net profit attributable to the parent company was 109 million yuan, a year-on-year increase of 41.91%, and EPS was 0.0924 yuan.
Ping An View:
The company performed well in the first quarter of 2022. In the first quarter of 2022, the company’s total operating revenue was 1.131 billion yuan, a year-on-year increase of 33.21%, and the revenue increased significantly, mainly due to the rapid growth of digital cost business revenue. The net profit attributable to the parent company was 109 million yuan, with a year-on-year increase of 41.91%, and the net profit attributable to the parent company increased rapidly year-on-year. The growth rate of the company’s net profit attributable to its parent company was higher than that of its revenue, which was mainly due to the completion of several national scientific research projects and the confirmation of relevant government subsidies, resulting in non recurring profits and losses of about 14 million yuan. Excluding the impact of non recurring profit and loss, the net profit deducted by the company from non parent company was 939909 million yuan, with a year-on-year increase of 25.02%, and the growth performance is still good.
The company’s gross profit margin and period expense rate decreased year-on-year, and R & D investment continued to increase. The gross profit margin of the company in the first quarter of 2022 was 85.51%, a year-on-year decrease of 4.48 percentage points, mainly due to the growth of solution business, the increase of purchased raw materials, inventory goods and implementation and delivery personnel, and the increase of related costs. The company’s expense rate during the first quarter of 2022 was 74.02%, down 4.14 percentage points year-on-year, indicating that the company’s expense control effect was obvious. In the first quarter of 2022, the company continued to strengthen investment in technology platform and new product R & D, with R & D expenses of 309 million yuan, a year-on-year increase of 20.98%, R & D expense rate of 27.31%, and R & D expense rate maintained at a high level.
The future development of the company’s digital cost business and digital construction business is worth looking forward to. In 2021, the company made positive progress in the development of digital cost business and digital construction business. The cloud transformation of the company’s digital cost business covers the whole country. The last four regions of the cost business, Jiangsu, Zhejiang, Anhui and Fujian, began to enter the comprehensive cloud transformation, and the transformation rate of the new transformation region and the renewal rate of the old transformation region increased. The proportion of digital cost cloud revenue in the company’s revenue reached 45.58%, and the proportion of cloud revenue continued to increase. By the end of 2021, the company’s digital construction project level products had exceeded 55000 service projects and served more than 5000 customers. According to the company’s previously announced business plan for 2022, the company’s digital cost business aims to sign a new cloud contract of 4 billion yuan in 2022 (3.1 billion yuan in 2021), and the digital construction business aims to increase revenue by 30% year-on-year in 2022. The company’s 2022 business plan reflects the company’s strong confidence in the future development of digital cost business and digital construction business. In the first quarter of 2022, the company’s digital cost cloud subscription mode covered the whole country, smoothed the downstream customer cycle and the impact of the epidemic in some regions, overcame the difficulties of the epidemic in the digital construction business, actively promoted the contract delivery, and laid the foundation for the company’s good performance in the first quarter. We believe that digital cost business and digital construction business will be the long-term driving force for the company’s future development.
Profit forecast and investment suggestions: according to the company’s first quarterly report of 2022, we adjusted the company’s profit forecast from 2022 to 2024. EPS was adjusted to 0.86 yuan (the former value was 0.85 yuan), 1.12 yuan (the former value was 1.11 yuan) and 1.41 yuan (the former value was 1.39 yuan), and the PE corresponding to the closing price on April 25 was about 53.3, 40.6 and 32.4 times respectively. The company’s digital cost business cloud transformation covers the whole country, the cost business cloud transformation has achieved remarkable results, and the future development potential of construction business is huge. The company has actively expanded its design business. In October 2021, the company officially released the digital architectural design product (stand-alone public beta version) based on Glodon Company Limited(002410) independent graphics platform in the field of housing construction. By the end of 2021, there were more than 1700 public installed products. The layout of the company’s digital construction industry chain has been continuously improved, and the leading position in the industry has been continuously strengthened. We are firmly optimistic about the future development of the company and maintain the “strongly recommended” rating.
Risk tips: (1) the development of cost business does not meet expectations. At present, the company’s cost business cloud transformation covers the whole country. In the future, the development of cost business needs to launch more new cost cloud products. If the company cannot launch new cost cloud products with high customer acceptance in time, there will be a risk that the development of cost business will not meet expectations. (2) The development of construction business did not meet expectations. The company’s BIM products are in a leading position in the market, but if the company cannot continue to maintain the leading position of BIM products and technology in the future, there will be a risk that the development of the company’s construction business will not meet the expectations. (3) The development of design business did not meet expectations. 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, and accelerated the research and development of structure, electromechanical, component and collaborative products. If the user acceptance of these products is lower than expected, there will be a risk that the company’s design business will not develop as expected.
