Main points of the report
Focusing on "digital construction", the company's business income shows a trend of sustained high growth. The company is a supplier of applied technology and products focusing on "digital construction" in the construction phase, based on the construction industry and oriented to the object and process of "digital construction". Provide applied technology, products and solutions from the construction preparation stage to the completion and acceptance stage. From 2016 to 2020, the company's operating income CAGR reached 40.34%, non-return net profit CAGR reached 32.84%, and the sales gross profit margin remained above 80%. In 2020, the company's operating income reached 380 million yuan, an increase of 34.30% over the same period last year; net profit deducted from non-return reached 83.13 million yuan, an increase of 29.83% over the same period last year; and R & D investment reached 80.13 million yuan.
The 100 billion-level building information market has a broad space for sustainable growth.
At present, the information investment in the domestic construction industry is relatively low. according to the company prospectus, the information investment of construction enterprises in China only accounts for about 0.08% of the total output value, while it is 1% in developed countries, which is only 1/10 of the level of construction information investment in developed countries. It is assumed that the gap between the current level of domestic construction information investment and that of developed countries will narrow by 2025, which is about 0.5% of the total output value of the industry. The scale of the building information industry will be as high as 129.885 billion yuan. China's building informatization low permeability superimposed new technology wave drives deep changes in the industry, and the information market has a broad prospect, which is expected to cultivate a number of leading manufacturers.
Intelligent construction site integrates advanced IT technology and site construction management, and helps to transform and upgrade the management mode. Intelligent construction site deeply integrates advanced technologies such as sensing technology, mobile Internet, big data, cloud computing, artificial intelligence, BIM and site construction management to form a project management system of interconnection, information sharing and intelligent management. The company's intelligent site products adopt the business form of "platform + components", forming six solutions of safety, quality, progress, personnel, machinery and green construction. According to data from Zhongyan Puhua Industrial Research Institute, the market size of intelligent construction sites in China was 12.09 billion yuan in 2019, an increase of 22.00 percent over the same period last year. In 2020, the company's intelligent construction site business achieved operating income of 164 million yuan, an increase of 30.42% over the same period last year, accounting for 43.26% of the total revenue, with a gross profit margin of 60.96%.
Investment advice and profit Forecast
The company focuses on the applied technology and products of "digital construction" in the construction stage. By increasing R & D investment, the company continues to open up the blue ocean market and has more room for growth. It is predicted that the operating income of the company from 2021 to 2023 is 5.17,6.93 and 921 million yuan, the net profit is 1.35,1.78 and 233 million yuan, the EPS is 2.47,3.27,4.29 yuan per share, and the PE is 30.42,22.99,17.55 times. At present, the computer (Shenwan) index PE TTM is 55.3 times, and the company has recently landed on the Kechuang board. The PE is mainly running between 40 and 50 times. It is expected that the net profit of homing in the next three years will be 33.67%, giving the company a target price of 123.50 yuan for the target PE, of 50 times in 2021. Recommend for the first time, give a "buy" rating.
Risk hint
COVID-19 epidemic situation is repeated; downstream is greatly affected by the real estate industry policy and prosperity; sales area is concentrated; the research and development of some software products depends on the basic software development environment provided by Autodesk.