Main points of investment
Suzhou is the largest architectural design enterprise with obvious regional brand advantages: the company was founded in 1988, mainly engaged in architectural design, engineering testing and other engineering and technical services. The income in 2015 was 336 million yuan, down 0.5% from the same period last year, while the net profit of returning home was 51.43 million yuan, down 9.1% from the same period last year. Architectural design accounts for more than 85% of the core business, with a gross profit margin of 42%. 90% of the company's revenue comes from Jiangsu Province and 80% from Suzhou. Strong regional advantages enable the company to maintain revenue in the face of a downturn in the construction industry.
Abundant orders on hand, fund-raising project Rail Transit complex Design Center construction project can contribute income increment in advance: the company's on-hand order of 660 million yuan, better than the same period in previous years. Suzhou has opened two urban rail transit lines, Line 1 and Line 2. The company is involved in the design of buildings related to Line 1 and Line 2. According to the urban rail transit planning of Suzhou, there are still seven lines to be opened in the future, and the total design volume of related buildings is expected to exceed 100 million yuan. Driven by market demand, the rail transit complex design center, one of the fund-raising projects, can reach production and contribute income ahead of time.
The construction of a new cloud management information platform will reach production by the end of 2016, which can improve architectural design efficiency by more than 20%, and will effectively reduce the rate of management expenses. The architectural design industry is a typical intellectual and knowledge-intensive industry, and the important way to improve the efficiency of the company is to continuously improve labor productivity. The efficient collaborative design system and building information model (BIM) technology based on the cloud management information platform will greatly improve the design efficiency of designers. The data stored in the high-performance network memory is pushed to various designers through the cloud platform, which solves the problem of bandwidth occupation of data transmission in the traditional way, and paves the way for the comprehensive promotion of Building Information Model (BIM) technology in the company's headquarters and branches.
The company actively explores the new space of construction and design, focusing on the two major directions of sponge urban planning and design and comprehensive pension planning and design. The architectural design of the company is mainly divided into public buildings, residential buildings and industrial buildings, of which public buildings account for more than 50%. The decline in infrastructure investment has led to a reduction in the size of public building design. The company is also actively thinking about the new space of architectural design. In recent years, research and development is mainly focused on sponge urban planning and design and comprehensive pension planning and design. Recently, the Ministry of Housing and Construction has compiled and issued the National Building Standard Design system for Sponge City Construction, and the Sponge City Construction has officially changed from the slogan period to the planning and construction period. In addition, China's population has gradually entered the aging stage, and the contradiction of providing for the aged is becoming increasingly prominent. At present, the nursing home is lack of resources, and the functional configuration is not perfect, and the demand of the pension industry is huge. The company develops a comprehensive pension planning and design integrated with pension care, health care, natural landscape, vacation leisure and community interaction, hoping to open up a new profit growth space for the company.
Profit forecast and investment rating: assuming that the fund-raising projects can be completed according to the expected process, based on the company's unique core competitiveness in the field of construction and design and the industry's forward-looking advantages in the field of innovation, we estimate that the company's annual income will be 3.79,5.35 and 649 million yuan respectively, the EPS will be 1.06,1.25,1.50 yuan respectively, and the corresponding PE will be 71,60 and 50 times respectively. Compared with the two pure design companies, Shanding Design and Design shares, the company estimates that it is more reasonable. In view of the more certain performance growth of the company in the future, we give it an "overweight" rating.
Risk tip: fierce competition in the industry, gross profit margin may have the risk of decline.