It owns the East China Institute, a leading enterprise in the field of design consulting in the country. The actual controller is the Shanghai State-owned Assets Administration Commission. The company is an integrated service provider with engineering design consulting as the core to provide high-quality comprehensive solutions for urban construction. The Group's predecessor was the East China Ministry of Industry Architectural Design Company, established in 1952, and the Design Department of the Production Technology Department of the Shanghai Municipal Bureau of Construction Engineering, established in 1953. In 1998, the “two institutes” merged to form Shanghai Modern Architectural Design (Group) Co., Ltd. Its East China Architectural Design and Research Institute is a leading enterprise in the field of design consulting in Huajian Group. It has completed a large number of major key projects of various types in key regions and cities across the country. The company's largest shareholder, Shanghai State-owned Capital Investment Co., Ltd., holds 30.97% of the shares (2024/06/11). The actual controller is the Shanghai State-owned Assets Administration Commission. In terms of revenue by business in 2023, engineering design, engineering contracting, engineering technology management services, information technology services and sales accounted for 51.60%, 39.52%, 8.33%, and 0.35%, respectively.
Accelerate the digital upgrading and transformation of business, and increase quality and efficiency, and per capita profit generation has increased markedly. In terms of engineering digitalization, the subsidiary Huajian Digital Innovation has iterated to version 2.0. Based on ArcTron ArCoS, it has developed the architecture-level digital pedestal product Building ArcBase and the city-level digital dock product City ArcBase, and continues to advance the two major business segments of “digital twins” and “smart empowerment” with its own core products. In the digital twin sector, we are committed to the construction of urban digital twins based on technologies such as BIM and CIM, and have been thoroughly applied in projects such as the Pudong Airport T3 terminal, Taiyuan Airport renovation and expansion project, and Jinqiao Group's CIM platform. In the Smart Empowerment section, a benchmark project was implemented in the form of ArCoS+ “6+1" baseline product+external application scenario product integration; as a software product provider, it empowers partners. In 2021-2023, the company's per capita profit increased from 30,800 yuan to 38,800 yuan, with a compound growth rate of 12.24%.
Net profit due to mother increased steadily, and new orders increased. The compound growth rate of the company's revenue from 2021 to 2023 was 0.02%, and the compound growth rate of net profit to mother was 13.83%. In 2023, compared to last year, in terms of the company's gross margin, the company's gross margin decreased by 0.46 percentage points to 23.42%. The company accrued credit impairment losses and asset impairment losses totaling 290 million yuan in 2023, and impairment increased by 118 million yuan, an increase of 68.60% over the same period. The net interest rate was 5.11%, down 0.41 percentage points. ROE (weighted) fell 0.56 percentage points to 8.95%.
The net operating cash flow inflow was $457 million, and the inflow decreased by $05 billion. The payout ratio decreased by 5.84 percentage points from 94.90% to 100.74%; the payout ratio increased 12.21 percentage points from 54.52% to 66.73%.
In 2023, the company signed a new 12.372 billion yuan, an increase of 3.66% over the previous year.
Profit forecasting and ratings. The company has the East China Institute, a leading enterprise in the field of design consulting in the country. We expect the company's EPS to be 0.50 and 0.57 yuan respectively in 24-25. As an industry leader, the company will enjoy a certain leading effect, giving it a price-earnings ratio of 15-17 times in 24 years and a reasonable value range of 7.50-8.50 yuan. For the first time, coverage was given, giving it a “superior to the market” rating.
Risk warning. Payback risk, policy risk, economic downturn risk.