Main points of investment:
The leading company in the high-end public dress industry, the level of interior design is world-class. The company is mainly engaged in the design, construction and supporting services of high-end public building decoration projects such as high-end star hotels and high-quality residential buildings. The company has the first-class professional qualification of architectural decoration engineering design and first-class professional contracting of architectural decoration engineering, and the qualification has reached the highest level of architectural decoration enterprises. Its CCD design brand once ranked third in the "Global Hotel Design Top 100 list" of the famous American professional magazine "Interior Design" (InteriorDesign) in 2013, making the company one of the first-class international interior design institutions and strong design ability to promote the development of decoration construction business. After this offering (calculated at 45 million shares), Zheng Zhong and Qiu Ai hold a total of 67.91% of the shares after the listing of the company, which is the actual controller of the company, as well as indirect shareholding by senior executives and core employees.
Public wear trillion market space is huge, consumption upgrading to support high-end hotel decoration. By 2015, the total output value of China's architectural decoration industry has reached 3.4 trillion yuan, of which the total output value of the public dress market has reached 1.74 trillion, accounting for 51.40%, with a huge market space. The growth of GDP and the increase of per capita disposable income have promoted the upgrading of consumption and brought a lot of demand for tourist hotels, but at present, there are still many prefecture-level cities and tourist cities in China that lack high-end star hotel facilities, and there is an urgent demand for the construction of related star hotels. Some international brand hotels also see the huge consumption potential in China, which has increased investment in China's high-end brand hotels. It is estimated that the overall decoration market of five-star and four-star hotels (new construction + upgrading) will reach 71.1 billion yuan by 2022.
Performance growth is relatively stable, with plenty of contracts on hand. From 2013 to 2015, the company's revenue was 1.566 billion, 1.79 billion and 1.806 billion respectively, with year-on-year growth rates of 36.05%, 14.34% and 0.88% respectively, and net profit of 104 million, 112 million and 110 million respectively, with year-on-year growth rates of 24.57%, 7.64% and-2.28%, respectively.
By the end of June, the total amount of contracts on hand was 3.266 billion, which was 181% of the annual income in 2015. short-term performance growth was guaranteed to a certain extent, but the company's net accounts receivable also reached 1.279 billion yuan, accounting for 73.95% of the total assets. There is a certain risk of payback.
Raising funds to improve comprehensive competitiveness, extension expansion is worth looking forward to. The company plans to issue no more than 45 million shares this time, and the net amount raised will be invested in creative design center, wood products industrialization construction, marketing network construction, information construction and replenishment, etc., and it is estimated that the after-tax profits of creative design centers and wood products industrialization projects will total 83 million yuan. According to the company's plan, the company will further increase the market share in other areas of public decoration on the basis of consolidating the characteristic business of hotel decoration, and has made corresponding plans for product and technology upgrading, marketing channels, financing, extension mergers and acquisitions and internationalization.
The reasonable value range is 22.76-26.02 yuan. It is estimated that the EPS in 16-17 years will be 0.65 yuan and 0.82 yuan respectively. According to the rules of issuing new shares, the issuing price of the company will be 13.99 yuan, corresponding to 21.51 times of PE in 16 years. The company is a new stock with a small market capitalization. It gives the company a dynamic price-to-earnings ratio of 35-40 times for 16 years, and the corresponding reasonable price range is 22.76-26.02 yuan. It is recommended to make an inquiry.
Risk hint. Public dress business decline risk, payback risk.
