Introduction to this report:
2023Q1 prefabricated design contracts increased 135% (accounting for 55% of architectural design contracts). Actively participate in domestic BIM software research and development. Equity incentive requirements are that the growth rate of 2023-25 after deducting non-net profit from 2020 is not lower than the key investment points of 59/78/ 99%:
Maintain the increase in holdings. The performance fell short of expectations. The forecast for 2023-2024 EPS of 0.83/1.00 (previously 1.05/1.21 yuan) growth rate was 45%/20%, and the 2025 EPS 1.18 yuan was forecast to increase 18%. Benefiting from AI design, it is expected to reduce costs and increase efficiency. The target price will be raised to 23 yuan, corresponding to 27.7 times PE in 2023.
Net profit increased 6.5% less than expected in 2022, and 2023Q1 increased 209% faster. (1) 2023Q1 revenue of 260 million fell 32%, 2022 revenue of 1.8 billion fell 37% (Q1-Q4 growth rate 3/-29/-45/ -49%), 2023Q1 net profit of 4.14 million increased 209%, and net profit of the mother of increased by 110,000 million by 6.5% (Q1-Q4 increased by 51/-2/1/10%). (2) Gross profit margin of 29.2% in 2022 (+8.3 pct), operating cash flow of 265 million (238 million in 21), calculated impairment of 100 million (impairment of 160 million in 21), and accounts receivable of 600 million (+18%).
There was a 51% increase in new design contracts signed for 2023Q1, including a 135% increase for prefabricated designs. (1) The 2023Q1 architectural design business signed 3700 million new projects increased 51%, of which 200 million prefabricated design contracts increased 135% (accounting for 55% of architectural design contracts), and 49.71 million new cost consulting contracts were signed, a decrease of 3%. (2) The equity incentive requirement is that the growth rate of non-net profit after deducting 2023-25 should not be lower than 59/78/99% using 2020 as the benchmark. (3) Build a leading design technology enterprise with design and R&D as the lead, and prefabricated construction and BIM as the core technology.
Lay out the field of AI digitalization and actively participate in domestic BIM software research and development. (1) Promote BIM positive design through the Huayang Express Platform, continuously improve the efficiency and application penetration rate of positive design, and actively explore and deepen the application of artificial intelligence in the field of design based on data. (2) Actively build the iBiM platform, achieve data integration and iteration from different links, and gradually connect smart buildings with smart communities, CIM, and urban space platforms. (3) Actively participate in domestic BIM software research and development, promote innovative application of independent intellectual property software for BIM technology, and provide a safe and mature basic software and ecological environment.
Risk warning: macroeconomic policy risk, overseas business risk, etc.