Company profile:
The company is mainly engaged in architectural design, decorative landscape municipal design, EPC general contracting and other business. Architectural design includes commercial housing design, public building design, indemnificatory housing design, etc.; decorative landscape municipal design mainly includes indoor and outdoor decoration design, landscape design, municipal design, etc.; EPC general contract is design-oriented design procurement and construction general contract; other business is architectural consulting, drawing review and other business.
By providing professional design services to customers, the company provides specific design documents, drawings, consultation and technical services according to different stages of pre-design, scheme design, preliminary design, construction drawing design and construction cooperation.
Current situation and prospect of the industry
The demand of the architectural design industry mainly comes from the construction industry, so it is greatly affected by the development of the real estate industry. Affected by the long-term factors of the decline in China's population growth, as well as the medium-and short-term factors such as the imbalance between supply and demand in some regional markets caused by the rapid growth of total real estate investment in the early stage, China's real estate industry has gone through the overall stage of rapid development. however, with the implementation of the "two-child policy", for a long time in the future. China's "demographic dividend" may still be the main driving force for the sustained and stable development of China's real estate industry. At the same time, the trend of urbanization in China on the regional differentiation and development of the real estate industry, the requirements of economic transformation on green energy saving and environmental protection and intelligent buildings, the rise of new real estate fields such as new industrial parks, and increased investment in housing projects provide a basis for the long-term and stable development of China's real estate industry.
Company highlights: the company has created a number of high-quality projects, the designed projects have won the "National Engineering Survey and Design Industry Award", "China Civil Engineering Zhan Tianyou Award", "the Ninth National excellent Engineering Design Bronze Award", "the Ministry of Construction Ministry-level urban and rural construction excellent survey and design second prize", "Zhejiang Construction Engineering Qianjiang Cup Award" and so on more than 100 national, ministerial and provincial excellent design awards. In 2014, the company was awarded the third place of China Private Design (Commercial Construction) leading Enterprises in 2015 of the Private Design Enterprise Branch of China Survey and Design Association, and the company was also awarded the title of "Top Ten Private Engineering Design Enterprises in China in 2015" of the Construction Times. In 2017, the company was awarded the first place of the leading Enterprise of Residential Architectural Design in 2017 of the Private Design Enterprise Branch of China Survey and Design Association, the first of the leading Enterprises of Cultural Architectural Design in 2017, the second of the leading Enterprise of Sports Architectural Design in 2017, the second of the leading Enterprises of Medical Architectural Design in 2017, and the third of the leading Enterprises of Educational Architectural Design in 2017. "the third leading enterprise in hotel architectural design in 2017" and "Landscape Architecture Design Specialty in 2017"
Fund-raising project
1. Branch construction project.
2. Information platform construction project.
3. Design R & D center construction project.
Main potential risks
1. The risk of the impact of downstream industry fluctuations on the company's performance.
The company is mainly engaged in architectural design and related business, the demand of the architectural design industry, mainly from the construction industry, so it is greatly affected by the development of the real estate market. During the reporting period, China's real estate industry entered the adjustment cycle, the slowdown of real estate investment growth, the increase of inventory, the decline of new housing construction area and other factors have a certain impact on the profitability of architectural design enterprises. The company made a net profit of 48.3597 million yuan in 2016, down 10.40% from 2014. If the growth rate of investment scale in China's real estate market continues to decline or even negative growth in the future, the company has the risk of declining performance.
2. The risk of relative concentration in the business area.
The company implements a chain strategy to build branches in areas with a relatively mature business and business base, and gradually reduce its business dependence on a single region. Even so, the proportion of business in Zhejiang is still relatively high. from 2015 to 2017, the company's business income from Zhejiang Province was 273.6159 million yuan, 25657.48 yuan and 507.0698 million yuan respectively, accounting for 55.29%, 51.19% and 69.90% of the company's main business income, respectively. In the future, if Zhejiang economy has a regional recession, or is affected by regional natural disasters or other force majeure, resulting in poor performance of the local commercial housing, public buildings and other markets, it may lead to a decline in the overall income scale of the company's architectural design business.
Valuation
As of May 10, 2018, the average static price-to-earnings ratio of the most recent month released by the CSI was 55.68 times. Combined with the current market conditions, the initial pressure is expected to be 25 yuan-30 yuan.
