\u3000\u3 Shengda Resources Co.Ltd(000603) 018 China Design Group Co.Ltd(603018) )
Revenue / net profit grew steadily, continued to overweight smart transportation, and maintained the "buy" rating
On the evening of April 27, the company released the first quarterly report of 2022. In 22q1, the company achieved a revenue of 920 million yuan, a year-on-year increase of + 14.1%, a net profit attributable to the parent company of 90 million yuan, a year-on-year increase of + 17.7%, and a deduction of non net profit of + 20.5%. Since the beginning of the 22nd year, the company's revenue net profit has increased steadily, and the deduction of non performance growth rate is higher, mainly due to the year-on-year decrease of 1.96 million yuan in government subsidies included in the current profit and loss. In addition, the company plans to repurchase about 2.73-5.45 million shares at 30-60 million yuan, accounting for about 0.4% - 0.8% of the total share capital of the company at 11 yuan / share. The repurchase is used to implement the company's equity incentive and employee stock ownership plan, which shows the company's confidence in medium and long-term development. We believe that while the company's traditional main business is advancing steadily, it has invested in the establishment of a joint venture with Shenzhen Youjia to make continuous efforts in the field of smart transportation and smart city, which is expected to enrich the company's product line in the field of smart transportation, with flexible medium and long-term performance growth and maintain the "buy in" rating.
The gross and net profit margin is relatively stable and the overall debt level is good
22q1 company's gross profit margin was 31.1%, with a year-on-year increase of + 0.16pct and a period expense rate of 20.3%, with a year-on-year increase of + 0.7pct, of which the sales / management / R & D / financial expense rates were - 0.7 / + 0.6 / + 0.9 / - 0.2pct respectively, and the company's R & D expenses increased by 36.5% year-on-year, mainly due to the company's newly established Innovation Research Institute, increased R & D investment, and cultivated the group's new business ecology by relying on digital technology, intelligent technology and key core technologies in the field of big data, The net interest rate of the company was - 9.9% year on year. The net amount of 22q1 CFO was - 300 million yuan, with a year-on-year outflow of 30 million yuan. At the end of 22q1, the medium and short-term borrowings of interest bearing liabilities were 210 million yuan, with a year-on-year ratio of - 32.0%. The company's asset liability ratio was 59.4%, with a year-on-year ratio of - 0.6pct. The overall debt level was good.
Overweight smart transportation, and the performance growth is expected to continue
On April 27, the company announced that it planned to establish Huayou Zhixing (Jiangsu) Technology Co., Ltd. with its own capital of 30 million yuan and Shenzhen Youjia Innovation Technology Co., Ltd., with both parties holding 50%. From the perspective of the global technology trend of automatic driving, it has become a consensus to adopt the development path of "single vehicle intelligence + network empowerment". The integrated intelligent transportation ecosystem formed by the combination of intelligent vehicles, roadside intelligent facilities and cloud computing is easier to achieve commercialization. Shenzhen Youjia has leading advantages in the fields of smart highway, smart city, smart parking and smart bus. We believe that the company and Shenzhen Youjia are closely integrated in the field of vehicle road coordination, which is expected to further enrich the company's product line. In the medium and long term, the new business is expected to have a good synergy with the main business of traditional survey and design and create a second growth curve.
Steady growth, solid foundation, broad growth space for new businesses, and maintain the "buy" rating
We believe that the company's traditional main business is growing steadily and has a solid foundation. Relying on Shenzhen Youjia's own technical advantages and the company's project experience in the field of survey and design, the two sides jointly promote the new intelligent transportation business, which is expected to enhance customer stickiness. We are optimistic about the continuous transformation of the company's follow-up business, with broad growth space for new business. It is estimated that the net profit attributable to the parent company in 22-24 years will be 7.2/8.4/970 million yuan. Referring to the current comparable company's 22-year wind consensus, the average PE is expected to be 13.3 times, and the company is recognized to be given 10 times PE in 22 years, corresponding to the target price of 10.52 yuan, maintaining the "buy" rating.
Risk warning: the future operation of the joint venture is uncertain, the progress of new business development is less than expected, and the execution of orders is less than expected.
