Items:
The company released its 2021 annual report: operating income was 475 million yuan, up 25.17% from the same period last year, and net profit from its mother was 62.6795 million yuan, down 35.81% from the same period last year; non-net profit deducted from its mother was 44.6173 million yuan, down 46.33% from the same period last year.
The company released its quarterly report for 2022: operating income of 67.9698 million yuan, down 7.09% from the same period last year; net profit loss of 25.181 million yuan; non-net profit loss of 29.2297 million yuan.
Comments:
The growth rate of intelligent construction sites on the revenue side in 21 years is relatively fast, and increasing investment in products and marketing puts short-term pressure on profits. In 2021, the company's overall revenue growth rate of 25%, of which building information software revenue growth rate of 13.72%; intelligent site revenue growth of more than 40%, accounting for 48% of revenue. Smart site gross profit margin fell close to 5pct superimposed income share increased so that the overall gross profit margin fell about 4pct. In terms of cost, the company increases its product and market investment: 1) in terms of products, it actively develops enterprise-level platform applications ("Mathematical Intelligence Construction platform" has been delivered to many construction enterprises), enriches the AI product line, etc.; 2) in the market, the company takes root in Zhejiang and actively promotes the national layout; 3) in 2021, the company's sales personnel and R & D personnel increase by 31.6% and 60.7%, respectively. Sales expenses and R & D expenses increased by 44% and 49% respectively compared with the same period last year. In the end, it makes a loss at the profit end.
The 22-year Q1 epidemic has brought about performance fluctuations. In the first quarter of 22, the epidemic situation in Zhejiang, Guangdong, Jiangsu and Shanghai, which had a large output value, restricted marketing activities and superimposed the impact of the suspension or postponement of construction projects in the construction industry. the company's construction information software business declined compared with the same period last year (cost business is basically flat, cost Zhejiang market growth), intelligent construction sites (obvious epidemic impact), profits and losses. In order to deal with the unfavorable factors of the outside world, the company has stepped up the promotion of online products and model innovation, and launched a smart site "cloud observation".
To meet the needs of customers. We believe that the demand for building information is always there, and with the promotion of resuming work and production and the effect of the company's product and marketing investment, the performance is expected to recover gradually.
Profit forecast, valuation and investment rating. We expect the company's 2022-2024 net profit to be 85 million yuan, 109 million yuan and 135 million yuan (the original forecast for 22-23 years is 176 million yuan and 241 million yuan), with corresponding growth rates of 34.8%, 28.7% and 24.4% respectively, and corresponding EPS of 1.55,2.00,2.49 yuan respectively. Considering the short-term impact of the epidemic and the time it takes for the company to increase the marketing effect, we give the company 22 times PE in 22 years, corresponding to the target price of 34 yuan per share, adjusted to a "neutral" rating.
Risk hints: COVID-19 epidemic risk; industry competition intensifies; new product promotion and national layout process there is uncertainty.