The main contents are as follows: 1. Built-in industrialization leader, one of the top 100 Chinese architectural decoration enterprises, deep ploughing indoor and outdoor decoration, curtain wall, design and construction fields, the business extends to the garden, mechanical and electrical installation, building intelligence, stone processing and other large decoration industry chain. The company takes the lead in realizing professional design, industrial production and assembly construction in the same industry, and has been ranked second among the top 100 architectural decoration enterprises in China for 16 years in a row.
In recent years, prefabricated architecture and prefabricated interiors have led a subversive technological change in China. The industrialized products of Asia and Xiamen have eliminated the backward traditional manual wet operation methods and achieved 100% fully industrialized assembled interiors. In the past, through six generations of technology, the material system of "plate + membrane" and the four systems of ceiling, wall, floor and sanitary ware were formed. At present, seven generations of assembled products have been developed and occupy a favorable position in the iteration of similar products.
2. with the steady growth of newly signed units and backed by the future development trend of East China, in the first three quarters of 2021, the company's newly signed units totaled 12.43 billion yuan, an increase of 7.1% over the same period last year, and an increase of 4.1%, forming a strong support for future performance growth. According to the pilot work Plan for Future Community Construction in Zhejiang Province, there will be about 100 provincial-level pilot projects by the end of 2021, and will be fully replicated and promoted in 2022. In the future, the community requires the application and promotion of the integrated technology of prefabricated architecture and interior decoration, which will greatly promote the market demand of prefabricated decoration in Zhejiang. The company started in Zhejiang, and East China's income share has been maintained at more than 50% for a long time, which will directly benefit from the promotion of the future community of Zhejiang.
3. The scale effect makes the optimization space of expense rate obvious, and the net interest rate is expected to gradually uplink the company in the past three years, with a significant increase in business expansion, focusing on the construction of channels and the industrialization of the marketing team, while the investment in management and R & D continues to increase. Since 2018, the expense rate of the company has increased significantly, and the level of net interest rate has decreased accordingly. In the future, with the growth of the company's revenue scale and the gradual results of business expansion, there is more room for optimization of the expense rate, and the level of net interest rate is expected to increase gradually.
Investment suggestion: the company's net profit is expected to be 416 million, 485 million and 536 million yuan in 2021-2023, corresponding to 25.8,22.1,20.0 times of dynamic price-to-earnings ratio in 2021-2023. In view of the steady growth of the company's performance, the company was given an "overweight" rating for the first time.
Risk tips: 1) business expansion is not as expected; 2) risk of recovery of accounts receivable.