The company is a leader in the construction information industry. Founded in 2011, the company is based on the construction industry, oriented to the object and process of "digital construction", providing applied technologies, products and solutions from the construction preparation stage to the completion and acceptance stage. At present, the company's products can be divided into building information software and intelligent construction site products.
The company's revenue has grown rapidly in the past three years, reaching 380 million yuan in 2020, an increase of 34.2% over the same period last year.
In terms of gross profit margin, from 2017 to 2020, the gross profit margin of the company's main business is 87.27%, 87.14%, 83.70% and 81.85% respectively. From a product point of view, the gross profit margin of building information software is more than 95%, and that of intelligent construction site products is about 70%. On the whole, the company's gross profit margin is at the industry average.
Lean management of the construction industry, concentration of the construction industry to enhance the superimposed external science and technology penetration, policy encouragement, promote the construction information industry has a good development prospect. The information investment of construction enterprises in China only accounts for about 0.08% of the total output value, while that in developed countries is 1%, which is only 1/10 of the level of construction information investment in developed countries, which is far from enough. The profit margin of the construction industry has been declining since 2013, at the same time, aging is increasing, labor costs are rising, and the extensive and inefficient development model of the industry needs to be innovated. At the same time, the national policy also continues to increase the construction information, promoting the rapid development of the industry. In terms of competition pattern, China's building informatization started relatively late, and the basic software mainly depends on the basic software research and development environment of foreign manufacturers. Domestic enterprise products are concentrated in the fields of application software, management platform software and intelligent construction sites. The company and Guangzhou Lianda and other enterprises are the industry leaders.
Raise funds to strengthen technology and product capacity. The company is in the accelerated growth stage, and the funds raised this time will be used for the scene application research and development project of AIoT technology in the construction field, the overall solution research and development project of the intelligent construction site, the software upgrade project, the marketing service platform construction project, and supplement the current capital, so as to continuously improve the company's technology, products and market competitiveness.
Earnings forecasts, valuations and investment ratings. The development prospect of domestic construction information industry is huge, and the company is a leading enterprise in the industry. We estimate that the company's operating income will grow by 34.7%, 36.4% and 38.0% respectively from 2021 to 2023, and its net profit will grow by 30.6%, 37.7% and 36.6% respectively, and its EPS will be 2.35,3.24,4.42 yuan respectively. Considering the company's leading position in the industry and referring to the overall valuation level of the industry, we give the company a PE multiple of 50-60 in 2021 and a reasonable market capitalization range of 64-7.7 billion. Based on the total share capital after the issue, the corresponding target price range is 117.5-141yuan per share, covering for the first time and giving a "recommended" rating.
Risk hints: there is uncertainty in the information investment in the construction industry; the competition in the industry is intensified; and there is uncertainty in the process of market promotion.