Main points of investment:
1) Company profile: Beijing Urban Construction Design and Development Group Co., Ltd. is a leading design, survey and consulting company in China's urban rail transit industry, ranking first in the total mileage of domestic urban rail transit line design package services. it is the overall general contract design unit of urban rail transit with the largest domestic market share and the most comprehensive strength.
2) Stock liquidity: the company is now actively promoting the company through different channels, so that more investors understand the value of the company, and do a good job in the communication between the market and the company, in order to gain recognition of the company and gradually improve liquidity.
3) retention of design business talents: in order to encourage and retain core talents, the company implemented the core employee stock ownership plan on December 29, 2017, issuing 76 million domestic shares at the implementation price of RMB 3.45 per share to core employees with a total number of not more than 190. the lock-up period is 36 months, accounting for about 5.60% of the total share capital of the company after the issue. In addition to equity incentives, the company as a leader in the industry, the appeal of its platform, social influence, and high-quality corporate culture are also key factors to attract and retain talents.
4) the regional nature of the industry: the company broke the regional characteristics of the industry, long ago in the national layout, the establishment of local design institutes, and made a lot of achievements. In addition to its own advantages, in the regions with strong geographical attributes, the company does not strive to be the first, but is willing to cooperate with local competitors, and the competitive environment of the industry is relatively relaxed.
5) General package: the concept of total package is overall design and general package management. The overall design is to do a relatively rough design of the urban rail line, including station setting, line direction, use of vehicle models, excavation depth, and coordination with the government or ground construction units on urban rail construction, and so on. After the rough design is completed, the general package management will hand over the more specific and meticulous design work to other design institutes according to the design plan, but the work plan and completion schedule of each design institute, all should communicate and coordinate with the responsible person responsible for the overall package.
6) when will the owner pay: there will be 10-15% advance payment after signing the contract with the owner, and the subsequent contract payment will be given in stages according to the design progress and the agreement of the contract.
7) merge into the original intention of the project contracting business: at the beginning of listing, in order to enable the company to have a strong anti-risk ability, to build into an industrial chain of financing, planning, design, construction and operation. The company's main business is rail design, and engineering contracting is only a part of it. But usually the volume of the project contracting business is relatively large, so this part of the business accounts for a large proportion. The company's strategy is to enlarge the design, strengthen the contracting and develop industrialization.
8) rebate for project contracting business: the project contracting business is capital-driven, and the payback is not good. The company accounts for it every year according to accounting standards, but in fact, there are basically no bad debts.
9): three fees: the management expects that there will not be much change in recent years, if there is an increase, it is mainly due to the increase in loan interest on the PPP project, which on the whole will not be too large.
10) the gross profit margin is relatively stable, with an average gross profit margin of about 30% for the design, 15-16% for the PPP of the engineering plate, and 5-6% for the total construction package. The change of the overall gross profit margin is still affected by the current income structure.
11) Revenue recognition: according to the percentage of completion method, the revenue recognition of the project contracting business is relatively simple and intuitive, and will be based on the progress of the project. The revenue recognition of the design sector will reverse the revenue according to the proportion of the actual cost to the total cost.
12) overseas markets: the company will closely follow "Belt and Road Initiative", focusing on design, especially in cooperation with large central enterprises to borrow ships to go to sea to minimize risk.
13) Progress of returning to share A: it is planned to hand in the materials before June this year. It is expected to be available in the first half of next year.
14) Summary and suggestions: the company is the leader in the field of rail transit design. After a short low ebb, urban rail construction has returned to the rapid growth channel, and according to the planning and the current situation of each city, the construction will continue to increase. The prosperity of the industry continues. The company is at the front end of the industrial chain, and as an industry leader, will benefit first. It is suggested to pay more attention to it.