The company released a brief report on the main operation of the decoration and decoration business in the second quarter: 1.136 billion yuan for newly signed orders in the second quarter, 3.704 billion yuan for unfinished orders signed, and 495 million yuan for unsigned orders.
The decoration and decoration business is full of orders, and the performance of the traditional main business is guaranteed.
In the second quarter, the company added 1.136 billion yuan of new orders, 718 million yuan for public decoration and 344 million yuan for residential decoration, accounting for 63.20% and 30.28% respectively. The total amount of unfinished orders signed by the company in the second quarter was 3.704 billion yuan, an increase from 3.369 billion in the first quarter, mainly due to the rapid increase in new orders signed in the second quarter compared with the first quarter. The company's unfinished orders on hand reached 1.5 times its 2016 revenue, and recently signed a decoration contract with Fortune International with a value of 350 million yuan, accounting for 14.36% of 2016 revenue, which will have a positive impact on the company's operating performance.
The total number of orders for residential decoration is stable, and the Internet home decoration layout has achieved initial results. The company has maintained good business relations with Evergrande, Country Garden Holdings, Longguang Real Estate and other companies in the field of fine decoration. This year, the number of residential decoration contracts that have not been completed and have not yet been awarded continues to remain at the 1.7 billion scale level. The company has made a breakthrough in the field of Internet home improvement. In December 2016, the company officially launched the new "Ruihe Home" Internet brand, put forward the management concept of "VR+BIM+ERP", and creatively adopted the "personalized home improvement full delivery" model, saving a lot of communication costs.
After solving the pain point of communication difficulties in home decoration, the overall construction efficiency is improved by about 50%, and the construction period is shortened by about 50%.
The new performance growth point of test-water photovoltaic power station, and the synergy effect is expected to help the performance growth company to carry out strategic cooperation with Xinyi Solar in 2015 to invest in photovoltaic power station and water-trial photovoltaic power station project installation. Since December 2016, the joint venture Lu'an Company has been included in the consolidated financial statements of the company.
During this period, the company invested in Anhui Jinzhai Power Station and Jiangxi Xinfeng Power Station to achieve grid-connected power generation, and accepted the Guangdong Heyuan photovoltaic power station EPC order with a total price of 240 million yuan. In addition, the company took its own Ruihe Building in Shenzhen as a model to pilot the application of distributed photovoltaic power generation in integrated office buildings, adding a new profit growth point of photovoltaic industry on the basis of a single architectural decoration industry structure. it has established an obvious competitive advantage for Ruihe in undertaking the internal and external decoration business of photovoltaic construction projects, and it is expected to give full play to the synergy between the photovoltaic industry and the original decoration business in the future. Help the company to improve its performance.
Investment suggestion
As one of the leaders in the decoration industry, while consolidating its traditional business, the company gives priority to the layout of photovoltaic power generation on the one hand and Internet home decoration on the other hand. The company develops distributed photovoltaic business, laying the foundation for the development of intelligent building decoration and photovoltaic building integration business. To maintain the "overweight" rating, it is estimated that the EPS in 17-19 will be 0.37,0.49,0.65 yuan respectively, and the corresponding PE will be 36,27,21 times respectively.
Risk hint: photovoltaic business does not meet expectations, and the growth rate of real estate investment continues to decline.