Significant revenue growth, continue to maintain high gross profit margin of business
The company's operating performance improved significantly in the first three quarters, with revenue of 186 million yuan, an increase of 40.65%. According to the semi-annual report, the business of the company was split, and the growth rates of commercial design and rail design were 67.22% and 50.21% respectively, while those of office and hotel design were 13.91% and 11.24% respectively. Interior design has the characteristics of high art, high plateau creation, high added value, and high gross profit margin. The company's gross profit margin increased by 1.8% to 51.58% in the first half of the year. In the itemized business, the gross profit margin of commercial design and rail design is relatively high, which is 53.95% and 49.93% respectively. With the continuous increase in the proportion of these two businesses, it will have a positive impact on the overall gross profit margin of the company.
During the period, the expense rate was basically stable, and the asset-liability ratio decreased obviously.
The company's expense rate during the first three quarters of 17 years was 20.07%, down 0.43 percentage points from the same period last year.
Among them, the sales expense rate decreased by 0.73 percentage points to 4.47%; the management expense rate was 15.26%, a slight increase of 0.04 percentage points, which was basically stable; and the financial expense rate also increased by 0.32 percentage points. The company's net interest rate increased by 2.48% to 23.49%. In the first three quarters, the company's net profit was 43.71 million yuan, an increase of 57.26%. With the smooth implementation of IPO, the company's asset-liability ratio has dropped rapidly to 11.61% from 43.08% at the beginning of the year, and all loans have been repaid with the help of cash-on-hand companies, which are relatively abundant relative to the company's operations. according to three quarterly reports, the company has zero short-term and long-term loans, and has great potential to expand its business scale with financial leverage in the future.
The payback situation has improved significantly, and the operating cash flow has become a regular one compared with the same period last year.
The company's payback situation improved significantly in the first three quarters, with cash collection rising 9.17 percentage points to 89.59% compared with the same period last year, and cash payment up 3.46 percentage points to 45.26% compared with the same period last year. As a result, the net operating cash flow of the company was 13.82 million yuan, much better than the-8.4 million yuan in the same period last year.
Obvious brand advantage and high customer recognition
Adhering to the business philosophy of "international height, China depth", the company established and expanded the market influence of the "Jacua" brand. With the help of the company's talent advantages, it has completed more than 100 projects in four subdivided areas, including commerce, hotel, office and rail transit, gradually won market recognition, and established a good partnership with real estate leaders including China Resources, Vanke and Poly. The source of business is stable. The funds raised by IPO will mainly be used to enrich the technical strength of the company. at the same time, it has recently set up a branch in Xiongan to increase its own capital of HK $50 million for Jetto Design. The company's market competitiveness will be further enhanced, and we are very optimistic about the sustainable growth of the company in the future.
Investment advice: the company has obvious brand advantages and high customer recognition; the performance growth in the first three quarters is obvious, the gross profit margin and net profit margin increase steadily, and the market competitiveness continues to enhance; with the help of the east wind of IPO, there is great potential for future development. It is estimated that the company's EPS will be 1.53,2.03,2.66 yuan per share from 2017 to 2019, and the corresponding PE will be 58,43,33 times. It will be covered for the first time and will be rated as "overweight".
Risk hint: the investment in fixed assets continues to decline; the risk of project payback
