Company profile: the leader of building information in the field of deep ploughing construction. 1) ploughing the field of building information, the core staff are fully motivated. The company began to develop and sell some products of intelligent construction site in July 2011, and integrated the R & D and sales of building information software on the basis of information products in the construction phase after March 2016. Lingshunling and Zhongshi Investment two employee shareholding platform partnerships were established to achieve backbone employee shareholding. 2) Information software + intelligent site products two-wheel drive, clear business structure. The company's building information software products are professional software products based on building information models. Intelligent site products adopt the business form of "platform + components". Intelligent site business has ushered in a period of rapid development in recent years. Revenue increased from 28.06 million in 2016 to 164 million in 2020, with a compound growth rate of 55.6%, and the proportion of revenue increased from 28.65% to 43.26%. 3) rooted in East China and radiating the whole country, the performance continues to grow. At present, the company's revenue is still mainly in East China, which reached 265 million in 2020, accounting for 69.7% of the total revenue. The company plans to gradually establish 21 marketing and after-sales service outlets outside Zhejiang Province, including Beijing, Shanghai, Guangzhou, Shenzhen, Jinan, Qingdao and Dalian, and increase the layout of the national business.

Industry analysis: the penetration rate of building information is still low, and the growth potential is promising. 1) Building informatization contributes to the development, and the growth potential is expected in the future. The construction industry is constantly improving efficiency and reducing fees through new technologies and new management methods, in order to achieve fine management. The start of construction informatization in China is later than that in developed countries. With the enhancement of the importance and investment of the construction industry to its own informatization, building informatization still has great potential for growth. 2) the domestic penetration rate is still low, and the position of the leading company is stable. Domestic BIM system demand customers are mainly construction and related enterprises, from the number of BIM use, the penetration of the BIM market is low, and it is still in the early stage. According to the operation of the main domestic participating manufacturers, the revenue and net profit scale of Guanglian in 2020 is far higher than that of other enterprises. Guanglianda has the largest market share in China, followed by tea shares.

Investment logic: the development of intelligent construction site is accelerated, and equity incentive shows confidence. 1) the business of building information software is leading, and the business development is stable. The company's underlying core technology, BIM algorithm engine, tower crane security auxiliary technology, and digital construction technology, contains the technological innovation of key algorithms, which is the company's main technical moat. The company's construction information software business income reached 216 million in 2020, with a compound growth rate of 74% in the past five years, and the software business income is growing rapidly. 2) with the rapid development of intelligent construction site business, it is expected to maintain the first-mover advantage. The company's intelligent site business has a compound growth rate of 34.6% in the past five years, the scale of income continues to expand, and the coverage of intelligent site solutions and functions is high. It has certain advantages in the part of local differentiation, and has obvious advantages in R & D and production. 3) the R & D ability is second only to the leader, and the profitability is better than that of the peers.

The proportion of R & D personnel of the company is 40.9%, slightly higher than that of Guanglianda, and the company's R & D investment is second to that of leading enterprises. compared with the same industry, there are more technological achievements and more R & D investment in some technological fields. In 2020, the company's ROE was 40.6%. In the same period, the ROE of Guangzhou Lianda and PCG were 6.8% and 24.6% respectively, and the company's profitability is outstanding. 4) the equity incentive is bound to the core personnel, and the development confidence is strong. The company issued a draft equity incentive on June 9, which intends to grant no more than 1.05 million restricted shares to the incentive target, accounting for 1.93% of the total equity at the time of the announcement of the draft incentive plan. the performance evaluation target is based on the operating income of 2020, and the growth rate of operating income from 2021 to 2023 is not less than 35%, 80% and 125%, respectively. The implementation of equity incentive will help stabilize the core team and demonstrate the company's confidence in development.

Profit forecast: the company has a high income scale in the construction information industry, and has a rich product system and customer resources. after listing, the company is expected to further expand the sales channels and continuously improve the product system. in addition, the penetration rate of the construction information industry continues to improve, and the prosperity of the industry continues to rise, and the company is expected to maintain stable growth in the future. The homing net profit was 130 million, 170 million and 220 million respectively, with year-on-year growth rates of 36.1%, 28.8% and 26.1% respectively, corresponding to PE of 35.7X, 27.8X and 22.0 X respectively, with a "buy" rating for the first time.

Risk hints: the risk of slowing down the growth rate of housing construction investment, the lower-than-expected risk of building information rate, the risk of sales falling behind expectations, and the risk of information lag.