\u3000\u3 China Vanke Co.Ltd(000002) 949 Shenzhen Capol International&Associatesco.Ltd(002949) )
Profits continue to be under pressure, optimistic about medium and long-term growth, and maintain 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 380 million yuan, a year-on-year increase of + 3.3%, the net profit attributable to the parent company was – 04 million yuan, a loss of 04 million yuan less than that in 21q1, and the deduction of non net profit was – 13 million yuan, which was basically the same as that in 21q1. Since 22q1, the company has maintained a steady increase in revenue and continued pressure on profit. We believe that BIM software is expected to accelerate the pace of commercialization after cooperation with Zhongwang, and the improvement of human efficiency of subsequent design business is still expected to be realized. We are optimistic about medium and long-term growth and maintain the “buy” rating.
The gross profit margin has improved slightly and the cost control is better
In terms of business, 22q1’s architectural design / engineering contracting / cost consulting business achieved revenue of 240 / 110 / 30 million yuan respectively, with a year-on-year increase of + 4.9% / – 0.3% / + 1.8% respectively, gross profit margin of 16.2%, year-on-year increase of + 0.7pct, period expense rate of 17.2%, year-on-year increase of – 0.3pct, of which the sales / management / R & D / financial expense rate was + 0.1 / + 0.4 / – 0.4pct respectively. The control of various expense rates of the company was relatively stable and the gross profit margin was improved to some extent. The total impairment loss of assets and credit was -0.12 billion yuan, with an additional loss of 05 million yuan year-on-year. Under the comprehensive impact, the net interest rate was – 1.5%, with a year-on-year increase of + 0.6pct, mainly due to the increase of bad debt provision for accounts receivable and contract assets. Other payables of 22q1 company increased by 41.4% month on month compared with Q4, mainly due to the increase of project funds collected and paid on behalf of construction agents. The net CFO was – 150 million yuan, with a year-on-year outflow of 120 million yuan, with a cash to cash ratio of 67%, a year-on-year ratio of – 5.3pct, a cash to cash ratio of 24%, a year-on-year ratio of – 24.9pct, an asset liability ratio of 50.2%, a year-on-year + 3PCT, and a good level of total liabilities.
Equity incentive stimulates the vitality of employees, and BIM commercialization is expected to continue
The company announced in the early stage that it and Zwsoft Co.Ltd(Guangzhou)(688083) jointly funded the establishment of “Zhongwang Zhicheng” joint venture to carry out the R & D and sales of domestic BIM software. By the end of 22q1, Zhongwang Zhicheng had completed the industrial and commercial registration and paid in all the registered capital. On March 23, 2022, the company decided to grant 1.09 million reserved stock options to 15 eligible incentive objects at a grant price of 17.41 yuan / share. This part of stock options has been registered on April 13, 2022, accounting for 0.56% of the total share capital of the company. We believe that stock option incentive can help stimulate the enthusiasm of employees. At the same time, the commercialization of BIM software is expected to accelerate and create the second growth curve.
Optimistic about medium and long-term growth and maintain the “buy” rating
In the past 21 years, the company’s self-developed design software continued to iterate, developed and launched ibim4 0 and Huayang quick build 2022 have built a full professional BIM forward design capability, and the control granularity has reached the parameter level. We believe that the core competitiveness of the company is relatively prominent, and the income of various businesses increases rapidly. The company is expected to continuously integrate industrial chain resources through “one-stop and platform” management, continue to expand the scale of design, cost and EPC business, and its operation is expected to continue to improve. It is estimated that the performance in 22-24 years will be RMB 250 / 3.1 / 380 million, corresponding to PE 9.9 billion 5 / 7.6 / 6.2 times. The new business is expected to bring significant valuation improvement. It is given a 22-year 24 times PE, corresponding to the target price of 30.8 yuan, maintaining the “buy” rating.
Risk tips: the volume and execution of orders are less than expected, the new construction area of real estate is less than expected, the impact of EPC on cash flow is more than expected, the risk of macro environment and policy changes, and the risk of intensified market competition
