Events:
The company released its 2019 annual report on April 2: operating income reached 2.486 billion yuan, up 4% from the same period last year; net profit returned to its mother was 88 million yuan, up 27.62% from the same period last year; corresponding to EPS 0.42 yuan. The profit distribution plan is 0.7 yuan for every 10 shares.
Comments:
The growth rate of net profit in 19 years is much higher than that of revenue, which is due to the increase of gross profit margin of decoration construction business. For the whole year, the company's decoration and construction business / decoration design business / civil construction / product sales revenue is-9.28% Maqure 19.50% 271.69% Universe 1134.27% 145.28% respectively. Among them, decoration construction business accounted for 82.52% of revenue, dragging down the overall revenue growth of the company for 19 years. The gross profit margin of public building decoration business and residential fine decoration business was 15.47% and 16.06% respectively, up 3.38% and 2.32% respectively, and the profitability was improved.
New civil engineering orders, the company has plenty of orders on hand. The company signed a new order of 2.844 billion yuan in 2019, an increase of 17.71% over the same period last year. From the perspective of order structure, the newly signed orders for public decoration / residential decoration / design business are 1.249 billion yuan / 768 million yuan / 16.7777 million yuan respectively, respectively, compared with the same period last year. The number of newly signed orders for public decoration and design business has declined. As a result of the company's acquisition of Fujian Mindong construction expansion business in 2018, new civil engineering business was added in 2019, civil engineering orders were signed for 810 million yuan, and the total amount of new orders signed by the company was abundant, which was 1.14 times of revenue in 2019, which provided a guarantee for steady revenue growth in the future.
Increase R & D investment, product performance waiting for catalysis. The company's R & D expenditure rate in 2019 was 2.75%, an increase of 472.92% compared with 0.48% last year. The company is a national high-tech enterprise. The sharp increase in R & D expenditure rate may indicate that the company has stepped up efforts to develop and build energy-saving building decoration products. In the context of the gradual tightening of environmental protection policies in the industry, it is expected to further enhance the competitiveness of products.
The growth of demand at the completion end is stable, and the residential fine decoration business may benefit. Real estate investment is expected to maintain a growth rate of 4% and 5% in 2020, and the full decoration market will grow steadily with the increase in the penetration of hardcover houses. The growth of the company's decoration construction orders in the residential hardcover field is expected to superimpose the increase in gross profit margin, and the profit of 20gamble in 21 years may be better than expected.
Coverage for the first time, giving the company an "overweight" rating. It is estimated that in 20-21-22, the annual revenue will be 2.969 million yuan respectively, an increase of 8%, 5%, 6% over the same period last year, and the net profit of homing will be 0.69 million yuan, 1.04 trillion yuan, and 0.55 yuan, respectively, respectively, for EPS.
Risk hint: the growth rate of real estate investment is not as fast as expected, systemic risk