Event: the company publishes its annual report for 2020 and quarterly report for 2021. In 2020, the company achieved operating income of 1.835 billion yuan, down 5.51% from the same period last year. The net profit returned to the mother was 218 million yuan, an increase of 9.38% over the same period last year. The non-return net profit was 194 million yuan, an increase of 10.64% over the same period last year.
Steady improvement in performance. In 2020, the company achieved operating income of 1.835 billion yuan, down 5.51% from the same period last year. Among them, the design consulting business was the main source of income, realizing business income of 1.056 billion yuan, an increase of 12.06% over the same period last year; the business income of project general contracting business was 470 million yuan, down 33.11% from the same period last year; the business income of project supervision and project management business was 184 million yuan, an increase of 8.06% over the same period last year; and the operating income of bidding agency and consulting project business was 78 million yuan, down 24.18% from the same period last year. The company realized a net profit of 218 million yuan, an increase of 9.38% over the same period last year, and a non-return net profit of 194 million yuan, an increase of 10.64% over the same period last year. In 2020, the company achieved a gross profit margin of 28.52%, an increase of 4.17pct over the same period last year, and a net profit margin of 12.22%, an increase of 1.29pct over the same period last year. The net operating cash flow of the company in 2020 was 256 million yuan, an increase of 104 million yuan over the same period last year. The asset-liability ratio in 2020 was 45.53%, an increase of 0.19pct over the same period last year. The expense rate during the company period in 2020 was 13.29%, an increase in 0.83pct compared with the same period last year. Among them, the management expense rate was 12.98%, an increase of 0.75pct over the same period last year, and the financial expense rate was 0.32%, an increase of 0.08pct over the same period last year.
2020Q4 achieved operating income of 773 million yuan in a single quarter, down 0.51% from the same period last year, and realized net profit of 69 million yuan, an increase of 2.99% over the same period last year. In the first quarter of 2021, the company achieved operating income of 269 million yuan, an increase of 17.01% over the same period last year.
The net profit of returning to the mother was 19 million yuan, down 6.04% from the same period last year. The deduction of non-net profit was 21 million yuan, an increase of 88.69% over the same period last year, and the performance continued to have a good momentum.
The development of the market has been strengthened and a high dividend scheme has been launched. During the reporting period, the company successfully won the bid for a large number of landmark projects, such as Nanjing City Phase III, Xingyang Digital economy Industrial Park, Nanjing University Suzhou Campus and so on. The group increased the design contract value (merger level) by 1.4 billion yuan. The value of the newly signed design contract of the parent company was 880 million yuan, an increase of 37% over the same period last year; the design collection was 603 million yuan, a record high, and the market development efforts were further strengthened. At the same time, the company plans to distribute a cash dividend of 6.25 yuan for every 10 shares to all shareholders, and a cash dividend of 170 million yuan, accounting for 78.05% of the net profit of shareholders belonging to listed companies in 2020. The cash dividend of the company's profit distribution plan is calculated according to the closing price on April 27, 2021, and the dividend yield reaches 6.41%, which is second to none among listed companies in similar industry segments.
Focus on green and low-carbon design concept, assembly design has obvious advantages. The company has set up a "Green Ecology and Energy Saving Building Research Center", which is engaged in the R & D and design of low-carbon green buildings and integrated photovoltaic buildings (BIPV). It has obvious advantages in prefabricated steel structure and low-carbon green building design. In 2020, the company's R & D center building won the first prize of the National Green Building Innovation Award, which was selected by the Ministry of Housing and Construction as the most authoritative and influential green building award in China. The company makes full use of the green and low-carbon design concept in the implementation of urban renewal, beautiful countryside, biomedicine, great health, advanced manufacturing and other projects, and achieves energy saving and low carbon in the process of related construction. help to achieve the industry "carbon peak", "carbon neutralization" and other goals and requirements.
Investment suggestion
It is estimated that from 2021 to 2022, the EPS of the company will be 1.16 yuan per share, respectively, and the corresponding dynamic price-to-earnings ratio will be 8.48 times, respectively, maintaining the "recommended" rating.
Risk hints: the risk of increasing competition in the industry; the risk that newly signed orders fall short of expectations; and the risk that market expansion cannot meet expectations.