Main points of investment:
Maintain and increase holdings. H1 revenue of 648 million yuan (- 13.7%) and net profit of 103 million yuan (+ 23.5%) exceeded previous expectations due to acceleration of the main business and equity investment (28 million yuan), deducting non-growth rate of-7.6%. Maintain the forecast that the company's EPS for 2020-22 will be 0.88 Universe 1.11 Placement 1.38 Yuan. The growth rate of 22 Universe 26 Universe will be 24 percent, and the target price will be maintained at 20.77 Yuan. The target price will correspond to the 15.1 times PE for the 2020-21-22 year 23.6 Plus 18.7 Universe, maintaining an increase in holdings.
Q2 revenue / net profit growth significantly increased, operating cash flow improved. 1) the growth rate of Q1/Q2 revenue in a single quarter-29.2% (+ 0.95pct) and net profit growth rate-12.3% (9.8%), Q2 improved obviously, which showed that the return to work accelerated after the epidemic; and the fair value change of equity investment including the profit and loss of the current period was 28 million yuan; 2) H1 gross profit margin was 26.2% (+ 4.2pct); net profit rate was 16% (+ 4.2pct), which decreased slightly compared with the same period last year. 3) four rates 14.7% (+ 1.05pct), management expense rate 8.8% (+ 0.55pct) / R & D 5.4% (+ 0.3pct) / finance 0.54% (+ 0.22pct); 4) net operating cash flow-90 million yuan (- 175 million yuan in the same period last year) due to maturity and acceptance of commercial acceptance bills received in the previous year.
The application rate of prefabricated steel structure design is the most mature and extensive, and the talent reserve / design strength is in the leading position.
1) have the special design technology and R & D achievements including prefabricated PC structure / steel structure / hybrid structure, promote the integrated design of prefabricated buildings, and actively apply BIM (there is a special BIM R & D center) to improve the collaborative design capability. 2) more than 80% projects include prefabricated design, and nearly 100% concrete residential projects adopt prefabricated technology. The income from the special design of prefabricated buildings accounts for about 40%. We expect steel structure design to account for about 20-30% of the total income. 3) We independently developed dozens of core technologies such as "steel frame with energy dissipation beam and cross central bracing assembly building system". 4) it has more than 3000 professional and technical personnel, the chairman of the board is a national master of engineering survey and design, and the design director of the Medical Design and Research Center is one of China's top ten hospital architects; 5) promote the medical production line and the layout of North China; 6) PE is only 18 times (an average of 41 times in recent 5 years) far lower than 38 times that of Huayang International.
Catalyst: policy supports core risks such as the enhancement of prefabricated steel structure and the improvement of prefabricated design capability: the promotion of steel structure is not as expected, the shackles of traditional construction methods, the weakening of technological advantages, etc.