Main points of investment:
Jiangsu Province's leading private architectural design enterprises. The company is mainly engaged in engineering design business, architectural design is the company's core business area, accounting for more than 85% of the revenue, of which public construction business accounts for more than 50%, and others include residential architecture, industrial and R & D buildings. in addition, it also includes a small number of landscape design and decoration design. The company has rich project experience, strong design and R & D strength, and has strong competitiveness in Jiangsu Province, especially in Suzhou.
As a result of the restructuring of public institutions, Dai Yaping and others are the actual controllers. The company, formerly known as Suzhou Architectural Design Institute, was an institution directly under the Suzhou people's Government, which was later restructured and established as Suzhou Architectural Design and Research Institute Co., Ltd. Dai Yaping, Zha Jinrong, Tang Shaohua, Zhang Min, Qiu Zhibin, Zhang Linhua and Ni Xiaochun are the consistent actors of the company. Dai Yaping and others directly hold 11.48% of the equity according to the issuance of 15 million shares, and indirectly control 49.67% of the equity through Sade Investment. The total equity of the control company is 61.14%, which is the actual controller of the company.
There are plenty of orders on hand, actively seeking expansion outside the province. In the first three quarters of 15, the company achieved operating income of 227.63 million yuan, a slight increase of 2.58%, and the net profit belonging to the parent company was 27.2 million yuan, down 16.71% from the same period last year. The company has obvious regional advantages in Jiangsu Province, accounting for more than 90% of the income; the intensity of business development outside the province is also gradually strengthening. In the first half of 15 years, the business income outside Jiangsu Province was 14.67 million yuan, accounting for 9.08%, showing a good trend of steady growth. As of the end of June 2015, the outstanding orders in hand are 667 million, and the future performance is supported.
Engineering design plate: small front-end business, endogenous + epitaxial two-wheel drive. The growth rate of fixed asset investment has continued to decline in recent years, but engineering design, as a small front-end business, is relatively less affected. By relying on design advantages to intervene in PPP projects, using investment to drive design or intervene in the field of general contracting, it is expected to bring new profit growth points. In addition, due to the qualification and regional restrictions of the industry, relevant engineering design companies have achieved business expansion through acquisitions. It is also mentioned in the company's development strategy: to enter the field of engineering and technical services related to architectural design by means of epitaxial mergers and acquisitions.
The listing broadens the financing channels, and the fund-raising projects enhance the ability to undertake business. The company plans to issue 15 million shares in private, raising 314 million of funds, mainly for rail transit, green energy-saving buildings and other emerging building form technology research and development and design service network construction, to enhance the project undertaking capacity, which is conducive to the growth of the company's future performance.
The reasonable value range is 34.85 yuan ~ 39.83 yuan. The number of this non-public offering is 15 million shares. According to the new regulations of the CSRC, it is issued online directly by pricing. The final issue price is 20.91 yuan per share. According to the maximum share capital after the issue, it is estimated that the 15-16 year EPS will be 0.89 yuan and 1.00 yuan respectively, and the issue price will correspond to about 23.49 times of the 15-year PE. With reference to the valuation level of similar listed companies, a 16-year dynamic price-to-earnings ratio of 35-40 times is given, and the reasonable value range is 34.85-39.83 yuan.
Main risks: core brain drain risk, payback risk, order delay risk.