Architectural decoration comprehensive group, the performance of sustained and steady growth:
Wei Ye Co., Ltd. is a comprehensive enterprise group focusing on architectural decoration design and construction, which has the qualification and ability to undertake all kinds of architectural decoration projects and has created a large number of high-quality projects. it has been selected as one of the top 100 architectural decoration enterprises in China for 15 years in a row. Since its listing, the company has achieved eye-catching performance and steady growth, with revenue of 1.958 billion yuan in 2017, an increase of 22.62% over the same period last year, and a net profit of 78.7793 million yuan, an increase of 42.90% over the same period last year. The company strives to improve the efficiency and quality of project management, strengthen business development, and will continue to maintain stable growth in the future.
The operation of the public clothing business is sound, speed up the layout of the industrial chain:
The company strengthens the layout of key areas, revolves around the general trend of national policies such as Belt and Road Initiative, Guangdong-Hong Kong-Macau Greater Bay Area and the integration of Beijing, Tianjin and Hebei, strengthens the operating strength of key areas, strives to cultivate superior regional markets, and speeds up the layout of market segmentations. focus on the cultural exhibition Chen, high-end hotels, long-rent apartments, administrative office and other areas to establish a professional department, to create a leading edge in the subdivision field. In terms of capital operation, on the one hand, the company combines engineering with finance to strengthen its financing capacity; on the other hand, it strengthens M & An and foreign investment to speed up the layout of the industrial chain.
The proportion of residential fine decoration has increased, and adhere to the development ideas of key customers:
The company's business structure continues to tilt towards residential fine decoration. In terms of revenue, the proportion of the company's residential fine decoration business revenue continues to rise, from 11% in 2014 to 36% in 2017; from the newly signed orders, the proportion of newly signed residential decoration orders has increased significantly since 2018. The company adheres to the development idea of "big platform, big customer", continuously develops and maintains big customers, improves market layout, accelerates the return of funds, in order to actively adapt to the new demand, and is expected to continue to benefit from the dividend of the increased proportion of residential fine decoration in the future.
Financial Forecast and valuation: the first coverage to give a "recommended" rating:
From 2018 to 2020, we estimate that the company will achieve an operating income of 24.02 million yuan, an increase of 22.7 percent, 23.4 percent, 24.3 percent, and a year-on-year growth of 25.1 percent, 20.7 percent, 20.4 percent, and 0.47, 0.57, 0.69 yuan, respectively, to realize a net profit of 0.99 percent, 143 million yuan and 20.4 percent, respectively. The current stock price corresponds to 20.9-17.3 PE 14.4 times from 2018 to 2020. Considering that the company's public dress business is sound, and the residential fine decoration business may fully benefit from the dividend of the increase in the proportion of residential fine decoration, the performance is expected to grow steadily and will be given a "recommended" rating for the first time.
Risk tips: investment in fixed assets is declining, real estate sales are not as expected, and the company's business payback is not as expected.