Product research and development and channel development at the same time, 2020-2021Q1 revenue performance has achieved strong growth. The company achieved a revenue of 380 million yuan in 2020, an increase of 34%, a net profit of 97.63 million yuan, an increase of 31%, in line with expectations, and a net profit of 83.13 million yuan, an increase of 30%. During the year, by vigorously promoting product improvement and upgrading, actively strengthening the development of sales channels and deepening the cooperation of existing customers, the company achieved strong growth in revenue under the epidemic environment. Among them, the revenue of the building information software / intelligent construction site business reached 2.16 billion yuan respectively, an increase of 37% and 30% respectively, the market recognition and brand image of each product continued to improve, and the intelligent construction site achieved remarkable results in the market development outside Zhejiang Province. 2021Q1 achieved revenue of 73.16 million yuan, an increase of 94%. Judging from the changes in the company's profit margin, revenue from intelligent construction sites grew rapidly. We estimate that the revenue ratio of Q1 building information software / intelligent construction sites is about 55% and 45% respectively. The net profit from the parent is 13.39 million yuan, a substantial increase of 370% over the same period last year, mainly due to the rapid growth of revenue, the decline in the rate of expenses caused by scale effects, and the increase in tax rebates. After deducting non-return, the net profit was 12.09 million yuan, a year-on-year increase of 324%. In 2020, the company plans to distribute 8 yuan for a total of 43.5 million yuan in cash dividends, with a dividend rate of 45% 18 pct.

The gross profit margin has declined, the expense rate has continued to decline, and the annual cash flow has increased steadily. In 2020, the gross profit margin of the company is 81.8%, of which the gross profit margin of building information software / intelligent construction site business is 97.7% pct, / 61.0% respectively. The gross profit margin of 6.2 pct, building information software has increased steadily. Due to the combination of software and hardware and a high degree of customization, the gross profit margin of intelligent construction sites has decreased due to the increase in the proportion of low gross margin hardware specified by customers last year. During the period, the expense rate is 61.7% and there are 3.3 pct, in which the sales / management / R & D / financial expense rate is YoY-0.5/-0.5/-2.3/-0.04 / pct,. With the gradual emergence of the company's scale effect, the company's sales, management and R & D expense rates have all declined. The decrease in the financial expense rate is mainly due to an increase in interest income. The impairment loss on assets (including credit) is about 5 million yuan, which is about 2 million yuan more than that of last year. The income tax rate is 5.8% and the tax preference for 1.3 pct, is expected to be basically stable. The net interest rate of return to the mother is 25.7%, which is 0.6 pct of YoYmuri. The net cash inflow from operating activities was 62 million yuan, an increase of 28%, which was in line with the profit growth rate. The cash-to-cash ratio and cash-to-cash ratio are 96% and 98%, respectively. The performance of the two pct, is basically stable. 2021Q1 has a gross profit margin of 81.1%. YoYmur5.1 pct, is mainly due to the rapid growth of intelligent construction site business with relatively low gross profit margin and the increase in revenue share. During Q1, the expense rate is 72.7% and there are 14.3 pct, in which the sales / management / R & D / financial expense rate YoY+0.5/-3.4/-11.7/+0.3 and pct, economies of scale continue to appear. Other income was about 8 million yuan, a substantial increase of 173%, mainly due to the increase in value-added tax on receipt and refund. Q1 returns a net interest rate of 18.3% for 10.7 pct. The net cash outflow from Q1 operating activities is about 36 million yuan, which is about 10 million yuan more than the same period last year. This is mainly due to the good completion of the company's business objectives last year and the increase in the payment of bonuses and salaries for employees.

Construction information leading technical strength is strong, long-term growth space is broad. After more than 20 years of development, the domestic construction information industry has initially completed the popularization of informatization in the aspects of design, bidding and tendering. At this stage, the informatization of construction links is stepping into a period of rapid development. The company focuses on the field of construction information, especially the strong Know-how reserve of construction safety, the algorithm engine integrates huge and complicated national and local standards, and continuously optimizes and upgrades; intelligent site products have outstanding customization capabilities for different application scenarios and customers, forming strong technical barriers. Future growth: 1) regional market development, the national market is expected to continue to develop after listing, and the distribution channels outside the province are gradually converted to direct sales, which is expected to increase the company's revenue volume; 2) the "cloud + end" model, by promoting the transformation of the "cloud + end" business model in the future, it is expected to transform stock users into stable paying users and reduce piracy space. 3) the extension of the intelligent construction site, with the continuous accumulation of data, can help the company to continuously improve the richness and diversity of intelligent construction site products, which has a broad long-term derivative demand.

Investment suggestion: we forecast that the company's net profit from 2021 to 2023 will be 1.343pm 247 million, an increase of 37%, 36%, 35%, respectively, and the CAGR for 2020-2023 will be 36%. The current stock price corresponds to PE of 33-24-18 and PS of 9-7-5, maintaining the "Buy" rating.

Risk hint: some software rely on overseas development platform risk, national market development is not as expected risk, tax preferential policy change risk, construction industry prosperity decline risk and so on.