\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Event: on April 25, the company released the report for the first quarter of 2022, realizing an operating revenue of 1.123 billion yuan, a year-on-year increase of 34.65%; The net profit attributable to shareholders of listed companies was 109 million yuan, with a year-on-year increase of 41.91%, which was in line with the pre notice range.
Digital cost has developed steadily, revenue has increased rapidly and profits have been released continuously. 1) During the reporting period, the company achieved an operating revenue of 1.123 billion yuan, a year-on-year increase of 34.65%, mainly due to the rapid growth of digital cost business. Meanwhile, in terms of profit, in 2022q1, the company realized a net profit attributable to the parent company of 109 million yuan, with a year-on-year increase of 41.91%, which also verified the deepening logic of cloud transformation and the continuous release of cost SaaS profit. 2) In 2022q1, the company’s digital cost cloud subscription model has covered the whole country, effectively smoothing the impact of downstream customer cycles and epidemic outbreaks in some regions, which is expected to support the company’s long-term and steady development. The subscription mode has improved the cost performance of products and services. The application rate of cloud pricing, cloud computing volume main products and data services such as guangcai.com and Guangcai assistant in engineering information has reached a new high, which has driven the improvement of customer satisfaction, transformation rate and renewal rate; At the same time, under the background of cost market-oriented transformation and cost fine management, the concept of “digital cost management” of the company has been upgraded, and the relevant products of the company have been officially applied by many state-owned investment pilot projects. We expect that with the gradual advancement of cloud transformation, cost marketization reform, cost management value-added services, infrastructure and other subdivided industry products, the ceiling of the company’s cost business is expected to continue to rise.
Digital construction actively promotes contract delivery, and solution businesses push up costs. 1) During the reporting period, the operating cost of the company was about 163 million yuan, a year-on-year increase of 92.79%; The gross profit margin was 85.41%, a decrease of 4.4 percentage points compared with the same period of the previous year, mainly due to the growth of solution business in the reporting period, the increase of purchased raw materials, inventory goods and implementation and delivery personnel, and the increase of relevant costs, or indicating that the company’s digital construction business actively promotes delivery. 2) According to the previous announcement, in 2022q1, the company’s digital construction business overcame the epidemic difficulties and actively promoted contract delivery. The construction informatization is mainly based on the combination of soft and hard solutions to verify the development trend of gross profit margin. We expect the gross profit margin of the company’s digital construction business to be stable at about 60% in the future.
The decrease of expense rate releases profits, and the cash flow is under pressure in the short term and better in the medium and long term with the development of business. 1) During the reporting period, the company realized a sales expense of RMB 283 million, with a year-on-year increase of 22.44%, mainly due to the continuous investment in the construction of sales network and the increase of personnel salary with the increase of performance and personnel; The sales expense rate was 24.99%, a decrease of 2.2 percentage points over the same period last year. The management fee was 256 million yuan, with a year-on-year increase of 30.92%, mainly due to the strengthening of organizational and system capacity-building and the increase of personnel salary and consulting service fee; The rate of administrative expenses was 22.65%, a decrease of 0.39 percentage points over the same period last year. The R & D expenditure was 309 million yuan, a year-on-year increase of 20.98%, mainly due to the continuous increase in R & D investment in technology platforms and new products; The R & D expense ratio was 27.31%, down 2.76 percentage points from the same period last year. 2) In terms of cash flow, in 2022q1, the net cash flow from the company’s operating activities was -384 million yuan, a year-on-year decrease of 215.32%, mainly due to the increase in cash paid for goods and services with the increase of business development personnel and per capita salary in the reporting period. Meanwhile, the company received 650 million yuan in cash from selling goods and providing labor services, a year-on-year increase of 2.04%; Accounts receivable were about 779 million yuan, an increase of 57.53% over the beginning of the period, mainly due to the rapid growth of income and the relatively long settlement cycle in the middle of the year compared with the end of the year. In the future, with the gradual follow-up of the company’s payment collection strategy, we expect that the company’s cash flow may be effectively improved.
Digital design accelerates the layout and strides forward to the global digital building platform service leader. 1) In October 2021, the company officially released the public beta version of architectural digital design software, which has three main characteristics: two-dimensional and three-dimensional integrated design, conforming to design habits and improving design efficiency. It is committed to making design software that best meets the habits of Chinese designers. With the release of relevant public beta versions, we expect that the polishing process and business development process of the company’s software design based on its own platform are expected to accelerate. By the end of 2021, the installed capacity of public beta versions of digital architectural design products had exceeded 1700. 2) According to the announcement on changing the purpose of raised funds, the company will transfer about 212 million raised funds proposed to be invested in “bimdeco decoration integration platform project” to “BIM design professional software project”, the third growth curve or accelerate the cultivation. 3) With the smooth progress of various businesses, the company’s design products are expected to play a synergistic role with cost and construction products to jointly help customers in the construction industry complete the integrated, digital and intelligent management transformation.
Maintain the “buy” rating. According to the key assumptions, the company is expected to realize the total apparent operating revenue of 6.954 billion yuan, 8.350 billion yuan and 9.912 billion yuan from 2022 to 2024, and the apparent net profit attributable to the parent company is 1.043 billion yuan, 1.247 billion yuan and 1.431 billion yuan.
Risk tip: the growth of cloud transformation performance is less than expected, the promotion of cost-added products is less than expected, the construction business is less than expected, and the construction information industry is affected by macroeconomic fluctuations
