share_log

亚厦股份(002375):坏账计提、投资损失拖累盈利;4Q20起订单恢复较快增长

Asia Xiamen shares (002375): bad debts and investment losses drag on profits; 4Q20 orders resume rapid growth

中金公司 ·  May 1, 2021 16:00

The performance of 2020 and 1Q21 is basically in line with our expectations.

The company announced its 2020 and 1Q21 results: realized income 10.79 billion yuan, an increase of 0.02% over the same period last year, net profit of 320 million yuan, a decrease of 25.4% over the same period last year; implied 4Q20 realized income of 3.84 billion yuan, an increase of 17.4% over the same period last year, and a net profit of 71.88 million yuan, a decrease of 43.8% over the same period last year; an increase of 30.6% over the same period last year, an increase of 30.6%, and a net profit of 69.18 million yuan, an increase of 25.6% over the same period last year The performance is basically in line with our expectations.

In 2020, the company's gross profit margin decreased by 0.1ppt to 14.3% compared with the same period last year; the expense rate for the four periods increased by 0.2ppt; the total loss of assets and credit impairment increased by 44% over the same period last year, mainly due to an increase in the provision of bad debts; the investment loss was 14.16 million yuan (a recognized gain of 43.7 million yuan in the same period last year), mainly due to the second settlement of Wanan performance compensation; the annual net interest rate decreased by 1.0ppt to 2.9% compared with the same period last year. The gross profit margin of 1Q21 decreased by 1.0ppt to 14.4% compared with the same period last year, and the expense rate decreased by 54.94 million yuan compared with the same period last year, and the total loss of asset and credit impairment returned to 54.94 million yuan. The net profit margin of 1Q21 decreased by 0.1 ppt compared with the same period last year, which is basically the same as the same period last year.

In 2020, the net operating cash inflow of the company was 550 million yuan, which was 130 million yuan more than the same period last year, mainly due to the acceleration of inventory turnover; the net operating cash outflow of 1Q21 was 1.08 billion yuan, and the net outflow increased slightly by 35.69 million yuan compared with the same period last year.

Development trend

4Q20 orders strong growth, business gross margin rebounded year-on-year. In 2020, new orders signed by the company increased by 12% compared with the same period last year, while 4Q20 and 1Q21 orders grew by 40% and 38% respectively. The unfinished contract value at the end of 2020 is 13.6 billion yuan, which is equivalent to 1.3 times the revenue in 2020. we believe that the company's on-hand orders remain sufficient and are expected to support revenue recognition in 2020. Revenue from the decoration business fell 2.4 per cent in 2020 from a year earlier, while gross profit margin rebounded 1.5ppt to 15.3 per cent year-on-year, and business gross profit rose 8 per cent year-on-year. In recent years, the company has expanded a large number of projects around the EPC model, and we believe that it is expected to provide a guarantee for the level of business profit margins.

The orders of assembly decoration are growing rapidly, and the technology continues to upgrade iteratively. In 2020 and 1Q21 newly signed residential decoration orders increased by 50% and 37% respectively compared with the same period last year, which we believe is mainly due to the expansion of prefabricated decoration business. In recent years, the company has continued to upgrade the assembly decoration industry, building three major industrial product platforms of Keyi, Kerui and Keyu in 2020, and developing hard-fitting, functional and intelligent product lines; in 2021, the company plans to continue iterative research and development of wall, ceiling, floor system and other technologies. We believe that the company's assembly technology upgrading is expected to contribute to the continuous expansion of the business scale, and we suggest that we continue to pay attention to the relevant business progress.

Profit forecast and valuation

We keep our profit forecast unchanged. The company is currently trading on 26x/22x 2021eUnix 2022ePmax E, maintaining a neutral rating and a target price of 8.44RMB, corresponding to 29x/25x 2021eUnix 2022ePmax E, which has 13% upside compared to the current share price.

Risk

The progress of assembly decoration orders and landing is not as expected; the growth of traditional decoration orders and profit margins are not as expected.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
Comment Comment · Views 315

Recommended

Write a comment

Statement

This page is machine-translated. Futubull tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation.