Summary of the report:
Ploughing the field of architectural decoration, the scope of business continues to expand. The company has been ploughing the field of architectural decoration for 27 years, focusing on indoor and outdoor decoration business, integrating curtain walls, building intelligence, gardens and other plates, including wholly-owned subsidiaries such as gardens and design, and holding subsidiaries such as photovoltaic and smart.
The main decoration business has obvious competitive advantages, and its performance has increased steadily year by year. From the brand point of view, the company's project has won many national awards in recent years, and its popularity and influence have improved steadily; from the project experience, the company has undertaken major projects many times and carried out projects all over the country. The company has entered the top ten of the industry for seven consecutive years, and its leading position is solid. From 2015 to 2020, the company's main decoration construction business performance continued to grow. In 2020, the company's main business revenue was 5.14 billion yuan, an increase of 10.12% over the same period last year. In the first half of 2021, the company's main business revenue was 2.241 billion yuan, an increase of 18.13% over the same period last year.
Layout property management business plate, "decoration + property" synergy effect is obvious. In 2017, the company strategically invested 25% of Saige property, cut into the field of property management for the first time, acquired 100% equity of Jiazette in 2020, and indirectly held 51.63% of Shenzhen Science and Technology Park property. In 2020, the company realized operating income of 122 million yuan in the property management sector, accounting for 2.18% of the total income. The company's "decoration + property" strong combination, collaborative progress, on the one hand, the decoration plate to the property company to undertake property management business empowerment, the company for many years to develop the decoration project to provide overall design and services; on the other hand, the property environment is inseparable from the professional service of decoration, the property management company can guide the decoration plate in the follow-up maintenance and secondary update of the management project.
Under the background of "carbon neutralization" and green building policy, there are broad prospects for the development of photovoltaic wind power. In September 2020, China proposed that China's carbon dioxide emissions should reach its peak by 2030, and strive to achieve carbon neutrality by 2060, while green buildings can achieve the goal of energy saving and emission reduction. Its building concept is in line with China's "double carbon" and energy consumption double control goals. Therefore, the company continues to lay out the new energy business, devotes itself to the investment, construction and operation of new energy projects, with the development and operation of wind, solar and hydropower as the core, and the coordinated development of other renewable energy. The company recently signed a strategic cooperation agreement with Zhongshan Ruike New Energy Co., Ltd. to jointly expand photovoltaic curtain walls and domestic roofing photovoltaic projects to promote the company's business in the new energy sector.
Give the company a "buy" rating. It is estimated that the EPS of the company from 2021 to 2023 is 0.36, 0.46, 0.61 yuan, and the corresponding PE is 15.27, 12.00, 9.13 times.
Risk hint: the landing of the project is not as expected, and the investment in infrastructure real estate is not as expected.
