The restricted stock award has been completed, demonstrating confidence in future development. On March 2, 2022, the company completed the registration of restricted stock under the 2022 restricted stock incentive plan. The company awarded 99 incentive targets 21.7318 million restricted stocks at a price of 3.19 yuan per share, including general manager, deputy general manager, chief engineer, financial director, engineering director, chief operating director and other management and technical backbones. The restricted shares granted shall be lifted in batches after the expiration of 36 months from the date of completion of the registration of the grant. According to the draft restricted stock incentive plan, the company sets assessment indicators at the levels of net profit, operating income, weighted average rate of return on assets and rate of R & D expenses. Among them, the assessment index at the level of net profit is based on the net profit of 2020. the growth rate from 2022 to 2024 is not less than 95%, 125% and 132%, that is, the net profit is not less than 339 million, 392 million and 404 million yuan. And not lower than the industry average or the 75 quartile level of the target enterprise. The completion of the company's restricted stock incentive plan deeply binds the interests of the company to the interests of management, demonstrating the company's confidence in future development.

The growth rate of newly signed contracts for engineering and technical management services is relatively high. In 2021, the newly signed contracts of the company totaled 12.622 billion yuan, an increase of 2.09 percent over the same period last year. Of this total, the value of newly signed contracts for engineering design was 6.44 billion yuan, down 4.61 percent from the same period last year, accounting for 51.03 percent; the value of newly signed contracts for engineering and technical management services was 1.017 billion yuan, an increase of 34.84 percent over the same period last year, accounting for 8.05 percent; the value of newly signed contracts for engineering contracts was 4.995 billion yuan, an increase of 7.28 percent over the same period last year, accounting for 39.57 percent; and that of engineering investigation was 171 million yuan, a decrease of 15.41 percent over the same period last year, accounting for 1.35 percent. Among the newly signed contracts, the engineering design sector accounts for the highest proportion, and it is also the main source of income for the company; the volume of newly signed contracts for engineering and technical management services is smaller and the growth rate is higher, and it is expected to continue higher growth in the future.

There was a high performance increase in 2021. According to the pre-increase announcement of the company's performance in 2021, the net profit of the company in 2021 is expected to be 304-339 million yuan, an increase of 75% to 95% over the same period last year, while the net profit after deducting non-return is 2.4-273 million yuan, an increase of 225% over the same period last year.

In 2020, the operation of Wilson, a subsidiary of the overseas company, was greatly affected by the overseas epidemic, and filed for bankruptcy liquidation in March 2021. Based on the operating loss of Wilson Company in 2020 and the provision for impairment of related assets caused by bankruptcy liquidation, the net profit of the company's 2020 consolidated statement was greatly affected. In 2021, the company firmly seized the opportunities of national key strategic areas, integrated development of the Yangtze River Delta, "five new cities", urban renewal and green double carbon, etc., to promote various key work and achieve a certain increase in performance in 2021 compared with the previous year.

Investment suggestion: the company's revenue from 2021 to 2022 is expected to be 103.36 / 12.094 billion yuan, an increase of 20% per cent over the same period last year, with a year-on-year increase of 20 per cent and 17 per cent over the same period last year. The net profit of its parent is 330,367 million yuan, an increase of 90 per cent and 11 per cent over the same period last year, corresponding to the current share price PE of 15ram 14 times respectively, maintaining the "recommended" rating.

Risk tips: the risk of intensified market competition; the risk of COVID-19 epidemic affecting the progress of the project; the risk that the recovery of accounts receivable is not as expected.