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Asha shares released the third quarterly report of 2021: the company achieved revenue of 8.759 billion in the first three quarters of 2021, + 26.10% of the same period last year, and net profit of 255 million, + 3.65% of the same period last year.
In the third quarter, the revenue was 3.451 billion, + 12.58% compared with the same period last year, and the net profit was 155 million, + 25.37% compared with the same period last year.
Comments:
The impairment loss improved month-on-month, and the performance rebounded against the trend: the company achieved revenue of 8.759 billion in the first three quarters of 2021, + 26.10% compared with the same period last year, and home net profit of 255 million, + 3.65% compared with the same period last year. Compared with the same period in 2019, income and performance are + 16.56% and-14.43% respectively, and the growth rate of performance is lower than that of revenue. We believe that it is mainly due to impairment losses, which in the first three quarters increased by 41 million over the same period last year and 113 million over the same period in 2019.
The company achieved revenue of 3.451 billion in the third quarter, + 12.58% year-on-year, and home net profit of 155 million, + 25.37% year-on-year. The single-quarter performance was the highest in the same period in history, and it still rebounded against the trend despite the tightening of the real estate industry. In terms of orders, the company signed 12.43 billion new orders in the first three quarters, which was + 7.09% compared with the same period last year, which was slower than that of 21H1.
Q3 profitability has significantly improved, and cash flow is under short-term pressure: the company's gross profit margin in the first three quarters of 2021 is 14.47%, year-on-year-0.47pct, single Q3 gross profit margin is 16.54%, year-on-year + 2.25pct, month-on-month + 4.13pct, close to the best level for the same period in the past three years. Net interest rate 3.12%, year-on-year-0.57pct, single Q3 net interest rate 4.77%, year-on-year + 0.50pct. Period rate 9.2%, year-on-year-0.35pct, itemized, management rate, R & D rate, sales rate, financial rate year-on-year-0.07pct, + 0.37pct,-0.4pct,-0.24pct, more R & D expenditure, an increase of 43.89% over the same period last year. The impairment loss improved month-on-month, and the sum of the company's asset and credit impairment losses in the first three quarters were + 55 million,-106 million and-72 million respectively. Net operating cash flow-1.396 billion yuan, year-on-year-484 million yuan, mainly due to the purchase of goods, labor services to pay more cash. The cash-to-cash ratio is 96.99%, year-on-year-3.9pct. The asset-liability ratio is 61.06%, which is + 1.73pct compared with the same period last year.
Firm industrialization core strategy, restructuring + foreign investment to consolidate the industry leading position: 1) industrialization priority, firm industrial reform: the company takes "architectural decoration industrialization" as the core strategy, the newly established prefabricated decoration department, the future will be EPC mode to send a large number of projects and overseas markets, and strive to through the 2018-2022 five-year efforts to stabilize the leading position in the industry. 2) restructuring + foreign investment to enhance competitiveness: reorganize the first-class qualification of Zhejiang Shunyi construction general contracting subsidiary to enhance EPC general contracting capacity; invest 80 million yuan to set up future construction science and technology with related companies to promote the development strategy of industrial assembly decoration industry. 3) increase R & D, empower long-term development: the company started the road of industrial decoration R & D in 2012, issued six enterprise standards in 2020, and continued to promote the secondary development of industrial software.
Profit forecast, valuation and investment rating: the company's performance has declined due to the epidemic and impairment losses in 2021, and it is expected that the main industry will continue to repair, and industrial decoration is expected to enter the volume stage. We estimate that the company's EPS in 2020-2023 is 0.40 yuan / 0.55 yuan / 0.80 yuan per share, and the corresponding PE is 19x, 14, 9x respectively. Industrial decoration prosperity is high, the company is a leading enterprise in the industry, technology and brand advantages are far ahead, giving the company a valuation of 35 times in 2021, the target price of 14 yuan per share, maintaining a "strong push" rating.
Risk hints: industrial decoration is less than expected, real estate regulation is higher than expected, and the growth of bad debt losses is higher than expected.
