Events:
According to the 2021 semi-annual report released on August 25, the company H1 achieved a business income of 2.566 billion yuan in 2021, an increase of 28.87% over the same period last year, a net profit of 104 million yuan, an increase of 7.64% over the same period last year, and a net profit of 106 million yuan after deducting non-return, an increase of 11.98% over the same period last year.
Comments:
2021Q2 performed well and revenue growth was in line with expectations. The company's 2021Q2 achieved a total operating income of 1.54 billion yuan, an increase of 50% over the previous month, a net profit of 77.075 million yuan, an increase of 185% over the previous month, and a net profit of 75.384 million yuan after deducting it, an increase of 150% over the previous month. Q2 quarter revenue growth performance is bright, the future revenue growth trend is significant.
The company's main business growth is steady, and the release of orders contributes to growth. In 2021, the company's H1 decoration construction business achieved a business income of 2.24 billion yuan, an increase of 18.13% over the same period last year, and the main business grew steadily. At the same time, 21H1 achieved 3.8 billion yuan in newly signed orders, an increase of 39.2 percent over the same period last year. As of June 30, the company had signed unfinished orders totaling 9.9 billion yuan, an increase of 13.6 percent over the same period last year. The company has plenty of orders on hand, and the release of orders supports business growth.
The development of emerging business is bright, and business coordination promotes further growth. The company acquired Gazette in 2020 and continued to expand the scale of the company's property management business. 21H1's property management and service business achieved an operating income of 176 million yuan, accounting for 6.88% of revenue, an increase of 45.1% compared with the company's property management income for the whole year 2020. The company makes full use of the synergy advantages of public decoration and property management business to promote the sustainable development of property management business, and the revenue of property management business is expected to further grow.
BIPV continues to be laid out, and the new energy business is expected to be released in the context of carbon neutralization. The company began to carry out photovoltaic new energy business as early as 2011, and established China equipment New Energy Technology Co., Ltd. in 2017, which has developed in the areas of photovoltaic building integrated power generation business and wind power business. The company undertakes a number of photovoltaic new energy power generation projects in Bayannur, Hohhot, Guangzhou and other places, and has some project experience in the field of BIPV. During the reporting period, the company contracted new energy projects such as 30MW distributed wind farm project in Xuchang Jian'an District and 20MW distributed wind power project in Jian'an District. Under the background of carbon neutralization and carbon peak policy, the photovoltaic new energy field continues to develop. Relying on its own project experience, the company is expected to further enhance its BIPV business and create new business growth points.
Give the company a "buy" rating. It is estimated that the EPS of the company from 2021 to 2023 is 0.51, 0.68, 0.85 yuan, and the corresponding PE is 10.05, 7.56 and 6.08 times.
Risk hint: the landing of the project is not as expected, and the valuation and profit forecast are not as expected.