Leading architectural design enterprise in Suzhou area. The company is mainly engaged in architectural design and other engineering and technical services, the main products are to provide design documents, drawings and related technical consulting services for all kinds of buildings. Among them, architectural design business accounts for about 90%, Suzhou area business accounts for about 80%.
Performance has declined slightly, and gross profit margin is expected to rise slightly. In 15 years, the company achieved operating income of 336 million yuan, down 0.5% from the same period last year; the net profit attributed to the parent company was 51.433 million yuan, down 9.1% from the same period last year; and the comprehensive gross profit margin was stable at about 40%. In recent years, the large-scale recruitment of new employees of fresh graduates is expected to promote a steady increase in gross profit margin through the growth of project experience.
The prospect of the architectural design industry is good, and the concentration of the industry is expected to increase. China's urbanization rate is advancing at a high speed, and the demand for new urban population housing, public buildings and rail transit construction will boost the development of the architectural design market. In addition, the trend of inter-regional industrial transfer and building energy-saving transformation and construction are also stimulating points of architectural design market demand. Due to the low concentration of the architectural design industry at present, the high-quality enterprises with outstanding competitiveness in the future are expected to increase their market share and become bigger and stronger through mergers and acquisitions.
Fund-raising projects help the expansion of the main business. In the company's IPO investment project, the design service network construction project plans to build four architectural design branches in Huai'an, Nanjing, Hefei and Shenyang, which will help to improve the company's business coverage and accelerate the national layout of the main industry; the green construction design R & D center and rail transit complex design center construction project will help to consolidate the company's position in the professional market segment. The cloud management information platform construction project will further improve the company's operating efficiency; the architectural design center transformation project will help to enhance the company's image and enhance the company's brand awareness.
Profit forecast and valuation: it is estimated that the return net profit of the company in 16-18 is 5509 yuan, 6176 yuan and 70.98 million yuan, the EPS is 0.92,1.03,1.18 yuan respectively, and the corresponding PE is 66,59 and 51 times respectively. We are optimistic about the good prospects of the architectural design industry, and as a regional architectural design leader, the company will further enhance its market share and operational efficiency through fund-raising projects. Cover for the first time, giving the company a "prudent recommendation" rating.
Risk tips: macroeconomic growth slows; profit margins decline as a result of increased competition in the industry; core staff are lost; and the progress of fund-raising projects is lower than expected.