Core ideas:
The annual net profit of homecoming for 16 years is expected to increase by 27.19% 46.75%.
The company is mainly engaged in engineering design business, architectural design is the company's core business area, income accounts for more than 85%. Benefiting from the overall recovery of the real estate market in Suzhou and Jiangsu this year, as well as the continuous improvement of the company's comprehensive competitiveness and brand influence, the number of projects undertaken by the company has increased over the same period last year, and the annual return net profit is expected to increase by 27.19% over the same period last year. 46.75%.
Mergers and acquisitions continue to fall to the ground, in order to strengthen the deficiency and enhance the technological advantage
Since the listing, the company has acquired Biroud of creative design, Zhongzheng testing of engineering testing and other companies, the operating situation of the target company is more optimistic. The company tends to acquire targets that can strengthen the deficiency, for example, the reason for the acquisition of Biroud is to enhance the creative design ability, and the other is to carry out the national networking site.
Stock incentives to achieve interest binding, improve the enthusiasm of core employees the company's first phase of the restricted stock incentive plan was awarded on June 13, 2016, accounting for about 2.5% of the total share capital, encouraging a total of 69 people.
Investment suggestion
The company is a leading private architectural design enterprise in Jiangsu Province. After listing, the financing channels have been broadened, and the endogenesis and extension have developed steadily. At present, 90% of the company's business is in Jiangsu Province, and it is expected that the business outside the province will accelerate this year. In addition, the company's first phase of restricted stock incentive was also implemented last year, binding the interests of core employees, and it is expected to achieve the performance appraisal target is a high probability event. To sum up, we are optimistic about the future development of the company and give it a "buy" rating. It is estimated that the EPS from 2016 to 2018 will be 1.00,1.17,1.49 yuan, and the corresponding PE will be 68,58 and 46 times respectively.
Risk hint
The decline of investment in fixed assets accelerated; the growth rate of performance was not up to expectations; the growth rate of newly signed orders slowed down; the risk of M & An integration.