Incidents:
The company released the “2022 Annual Report” and “2023 First Quarter Report” after the market closed on April 25, 2023.
Comment:
Multiple factors have put pressure on the company's performance in the short term. The smart construction site business bucked the trend. In 2022, the company achieved operating income of 435 million yuan, a year-on-year decrease of 8.50%; achieved net profit of 56.01008 million yuan; and achieved net profit of -779.884 million yuan after deducting non-return to the mother. According to business, smart construction site products achieved revenue of 245 million yuan, an increase of 6.50% over the previous year. Among them, outside of Zhejiang Province maintained relatively rapid growth; building information technology software achieved revenue of 190 million yuan, a year-on-year decrease of 22.60%. Mainly due to strong correlation between business and newly started projects, the construction area of newly started housing across the country fell significantly year-on-year in 2022.
In the first quarter of 2023, the company achieved revenue of 59 million yuan, a year-on-year decrease of 12.61%; it achieved net profit of -14 million yuan to the mother.
Continuing to strengthen marketing channel construction across the country and release infrastructure-related products in 2022, the company further strengthened marketing channel construction. It has built six provincial marketing centers in Zhejiang, Guangdong, Shanghai, Hubei, Jiangsu and Shandong. During the year, Guangdong, Shanghai, Zhejiang and other provinces with a large output value of the company were clearly affected by sudden external factors due to high population mobility. Some short-term customer demand declined or delayed; the central and western regions, such as Hunan, Yunnan, Shaanxi, etc., achieved obvious marketing expansion results and achieved rapid growth, all leaping into markets with output values of 10 million. In 2022, the company released the Pinming Digital Infrastructure Engineering Smart Construction Site Overall Solution and the Pinming Digital Infrastructure Decision and Command System Platform. In terms of application scenarios, it covers the digital application of special construction scenarios such as tunnel construction scenarios, special scenarios for roadbed pavement construction, concrete mixing stations, prefabricated beam fields, laboratories, etc.; in terms of technology, integrated applications of BIM, GIS, IoT and AI technologies are realized; at the management level, it covers a multi-level architecture platform system from project headquarters to various project departments and construction areas to meet the different business management and data analysis requirements at various levels.
Continue to increase investment in R&D and build a technical foundation on our own research platform
The aPaaS platform provides customers with a technical foundation for digital transformation solutions. In 2022, the platform made great progress in adapting to user needs and improving delivery efficiency and delivery quality: 1) the IoT platform added support for 13 business scenarios; 2) The BIM lightweight engine performance was improved, drawing efficiency was increased by 70%, and memory consumption was reduced by 40%; the newly developed BIM+GIS secondary development platform supports the integration of BIM and GIS scenarios; 3) the low-code platform was greatly optimized for business adaptation to project-based management; 4) optimization for mature third parties such as Standardized connectivity solutions for enterprise WeChat and DingTalk data sources reduce multi-system data integration and delivery costs by more than 50%. The company increased R&D investment on the BIM 3D basic graphics platform, and achieved the release of the 3D basic graphics platform and the beta version of the BIM application software based on the graphics platform.
Profit forecasting and investment advice
The company focuses on “digital construction” applied technology and products in the construction stage, continues to explore the blue ocean market, and has broad room for growth. The company's revenue for 2023-2025 is predicted to be 587, 755, and 944 million yuan, net profit attributable to the mother is 0.56, 0.84, 126 million yuan, EPS is 103, 1.55, and 2.31 yuan/share, and the corresponding PE is 33.54, 22.28, 14.97 times. Considering the growth of the company's business, the company was given 45 times the target PE for 2023, with a target price of 46.35 yuan. Maintain a “buy” rating.
Risk warning
The risk of loss of core technical personnel and disclosure of core technology; risk of concentration of sales regions; risk of the development of some software products depending on the basic software development environment provided by Autodesk in the United States.