Guosheng Securities: huayang international buy rating

2022-05-24 0 By

Cheng Longge, He Yaxuan, Liao Wenqiang, Guosheng Securities Co., LTD., conducted research on Huayang International and released a research report entitled “Steady expansion of Main Industry, Assembly and BIM Dancing together”. This report gives a buy rating on Huayang International, and the current share price is 15.91 yuan.Huayang International (002949) design business steady growth, per capita output value significantly improved.In 2021, the company achieved revenue of 2.88 billion yuan, a significant increase of 52%;The net profit returned to the parent company was 110 million yuan, which decreased by 39%. The bad debt provision of 100 million yuan was made for the receivable assets of individual customers. If this factor was reduced, the net profit returned to the parent company was about 210 million yuan, which increased by 28%, showing a relatively stable growth.In terms of business segments, in 2021, the company’s revenue of architectural design, cost consulting and EPC will reach 15.4/2.3/1.09 billion yuan, respectively, increasing by 25%, 34% and 137%, respectively. With the continuous and smooth progress of large EPC orders in the early stage, the company’s REVENUE of EPC business will increase significantly.Prefabricated architectural design business revenue of 580 million yuan, year-on-year growth of 52%, the company’s prefabricated advantage business continued to expand rapidly.Quarter by quarter, the actual revenue of Q1-4 was 3.7/6.9/7.9/1.04 billion yuan, up 92%/73%/46%/36%;Respectively belong to the female net – 0.76 – / – 0.08/0.73 / – 036 million yuan, compared with the same change + 71% / + 11% / + 8% / 156%.In terms of orders, in 2021, the company will sign new contracts for architectural design of 2.44 billion yuan, with an increase of 5%. Among them, the new contracts for assembly design business of 1.09 billion yuan, with an increase of 19%, accounting for 45%, with YoY+5 PCT.The newly signed contract of cost consulting business is 450 million yuan, an increase of 27%.In terms of per capita output value, excluding EPC business, the per capita output value of the company in 2021 will be 346,000 yuan, and YoY+ 55,000 yuan, with a significant increase in per capita output value and continuous optimization of operating efficiency.The company intends to pay out a cash dividend of about 58.81 million yuan, with a dividend rate of 56% and YoY+11 PCT.Expansion period gross margin declined and cash flow performance was excellent.In 2021, the company’s gross profit margin is 20.9%, down 5.5 PCT compared with the previous year, among which the gross profit margin of architectural design/EPC business is 31.8%/2.7% and Yy-1.6 /-2.2 PCT respectively. The decrease of the gross profit margin of design business is expected to be mainly caused by the company’s rapid business expansion period and the advance of human and other costs.The decrease in EPC gross margin is expected to be mainly due to higher raw material costs.The expense ratio of the period is 11.2%, down 1.5 PCT compared with the previous year. Among them, the sales/management/R&D/financial expense ratio changes -0.2/-1.1/-0.5/+0.2 PCT respectively, and the sales, management and financial expense ratio decreases. It is expected that the EPC business related rate of the main company is lower than that of the main design business.After the rapid increase of EPC revenue scale, the overall expense ratio of the company decreases;The increase in financial expense ratio is mainly due to the implementation of the new lease criteria in the current period (under the new criteria, a new item of “lease liability” is set up, and the interest is included in the financial expense, which is 6.67 million yuan in the current period), and the first year interest payment of the convertible bond in the current period (about 1.8 million yuan).The impairment loss of assets (including credit) was about 160 million yuan, an increase of 110 million yuan year-on-year.Net interest rates fell 5.5 PCT to 3.7%.In 2021, the company’s operating cash flow net inflow of 240 million yuan, continuing the state of large net inflow in the previous year, the income to cash ratio of 101%, YoY+3 PCT, in the real estate chain financing continued to be tight last year, the company still achieved a large amount of cash collection, excellent profit quality.The development of assembly and BIM business is accelerated, and the medium and long term growth power is sufficient.In terms of assembly, the company has accelerated the expansion of assembly architectural design business in recent years. Orders accounted for nearly half in 2021, becoming one of the core driving forces for the company’s growth.In the aspect of BIM, the company has abundant technology and development capacity. Currently, Huayang City Science and Technology Co., Ltd. has more than 130 employees, and has successively developed and launched THE iBIM platform V4.0 version and Huayang Rapid Construction 2022 version.At the same time, the company actively promotes BIM business cooperation with foreign countries. On the one hand, it cooperates with Zhongwang Software to develop a domestic BIM platform to help realize autonomous control and solve the “bottleneck” problem in the industry.On the other hand, it has strategic cooperation with Wanyi Technology, a wholly-owned subsidiary of Vanke engaged in real estate technology research and development. It has carried out cooperation in THE aspects of CAD based AI drawing review, data docking between AI drawing review platform and CAPOL iBIM platform, AI enabling design scenes, BIM cooperation and research and development, etc.BIM business accelerated promotion is expected to create a new business growth point of the company.Investment advice:We forecast that the company’s net profit in 2022-2024 will be 2.52/3.14/386 million yuan, up 140%/24%/23% year on year, corresponding EPS will be 1.29/1.60/1.97 yuan, the current stock price corresponding to PE is 12/10/8 times, maintain the “buy” rating.Risk warning: policy risk of real estate industry, risk of assembly and BIM business development not as expected, risk of cross-regional operation, etc.The unit in the recent 90 days a total of 7 institutions to give ratings, buy rating 5, overweight rating 2;The average institutional price target over the past 90 days is 26.0.Securities star valuation analysis tools show that Huayang International (002949) good company rating of 2.5 stars, good price rating of 3.5 stars, valuation composite rating of 3 stars.(Rating range: 1 ~ 5 stars, maximum 5 stars) The above content is collated by Securities Star according to public information, if you have any questions, please contact us.