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Thursday, 05/12/2022 3:06:50 AM

Thursday, May 12, 2022 3:06:50 AM

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Annual Report Observation?The future growth point of Zhuyou Zhizao Technology.


May 10, 2022 22:21 Viewpoint New Media

iewpoint After the delayed performance, Zhuyou Zhizao Technology, one of the listed platforms of Jianye Group, disclosed its 2021 annual results earlier.

On May 10, Zhuyou Zhizao Technology held an online exchange meeting for investors to introduce the basic situation of the company and answer questions from investors.

According to the previously disclosed performance, Zhuyou Zhizao Technology recorded sales revenue of approximately HK$2.085 billion in 2021, a year-on-year increase of approximately 91.4%; gross profit of approximately HK$524 million, an increase of approximately 51.8% year-on-year; gross profit margin decreased from 31.7% in 2020 25.1% by 2021.

In terms of dividend distribution, the board of directors of Zhuyou Zhizao Technology proposed to pay a final dividend of 1 Hong Kong cents per share to shareholders in 2021.

Some investors revealed to the new media that Zhuyou Zhizao Technology has never paid dividends since it joined the Jianye family in 2019. This is the first time that a listed company has paid dividends.

The first dividend distribution this year is to thank investors for their support over the years and to share the phased development results with investors through dividends. On the other hand, it also hopes to attract more investors to pay attention to the long-term value of the prefabricated construction field through dividends.

The above-mentioned investors said that at the online exchange meeting that day, based on the development pattern of the industry, Zhuyou Zhizao Technology also put forward a relatively clear development strategy.

Specifically, on the one hand, deepen the layout of the whole industry chain, continue to be an integrated service provider, and construct green buildings. On the other hand, we will build a digital and intelligent platform to continuously reduce costs and increase efficiency. In addition, together with Glodon, cut into the full-process digital platform of PC prefabricated buildings. "In the future, some software service products will be developed for this industry, so that the business will have some new profit growth points."

In 2021, Zhuyou Zhizao Technology introduced Glodon, an A-share listed company, which subscribed for 9.67% of its issued share capital at HK$0.96 per share, becoming the second largest shareholder of Zhuyou Zhizao Technology.

At the online exchange meeting, regarding the cooperation between the two parties after the investment that investors are generally concerned about, Zhuyou Zhizao Technology said that the cooperation with Glodon is mainly in two aspects.

On the one hand, it is to create a digital and intelligent product for prefabricated on-site construction management. Now it has been promoted and applied in the projects of the parent company of the group, and it is hoped that it can be extended to more third-party customers in the future.

On the other hand, Glodon is the leader in the traditional engineering cost industry. With the help of Glodon's accumulation in engineering cost and its leading position in the industry, Glodon develops a new engineering cost product for prefabricated buildings, and also opens up new markets. . If it can be implemented within the year, the profit should be higher than the traditional manufacturing and decorative garden business.

Previously, Founder Securities released a review report on the main operating data of Zhuyou Zhizao Technology in 2021.

The report believes that the development of Zhuyou Zhizao Technology's overall performance this year has two advantages:
- first, in the context of achieving the carbon neutrality goal, the development space of the prefabricated building industry has been greatly improved, the industry development has accelerated, and more new customers have been acquired. It will help to accelerate the release of new production capacity of Zhuyou Zhizao Technology;
- secondly, under the environment of marginal relaxation of policies in the real estate industry this year, the construction area may be improved, which is beneficial to the company's overall performance.

At the exchange meeting, the management also revealed that under the background of policy promotion, labor shortages and rising labor costs in the construction industry, "it is predicted that the industry will maintain a growth rate of more than 20% in the future".

Obviously, this growth space will bring relatively stable income to Zhuyou Zhizao Technology. According to the annual report data, in 2021, the sales of PC components and products, which are the company's main business, will reach 2.5 billion yuan, a year-on-year increase of 74%. About 63.4%, the main business has obvious advantages.

However, the gross profit margin of Zhuyou Zhizao Technology decreased from 31.7% in 2020 to 25.1% in 2021. In response to this data, Zhuyou Zhizao Technology explained to investors that the overall cost of raw materials rose by about 16% last year, of which the cost of steel increased by about HK$185 per cubic meter.

At the same time, industry competition intensified, prices fell, and raw material costs rose, which in turn affected gross profit margins.

Fortunately, Zhuyou Zhizao Technology has added new business segments of smart garden and smart decoration on the basis of the original PC smart manufacturing, forming three major business segments.

While improving the business model of the entire industry chain, the two new businesses achieved an order volume of RMB 2.17 billion, driving the overall sales contract value to soar by approximately 119%. However, no specific earnings were disclosed in the annual report.

According to the investors who participated in the meeting, the company's management believes that from the perspective of this year's plan, it is expected that 25% to 30% of the revenue will come from decoration and gardens, and the profit side hopes to achieve about the same proportion. contribute.

"It is now estimated that 60% to 70% of the total orders of listed companies are PCs, and 30%-40% are decorative gardens. The contribution of decoration and gardens this year may be slightly more than last year, but the proportion of PCs There will be more."

In the context of the impact of the epidemic, rising raw material prices, and declining sales prices, such a business layout may be more advantageous, so that in terms of performance outlook, the company believes that there will be growth this year.

By the end of 2021, Zhuyou Zhizao Technology has deployed 48 factories in 16 provinces across the country. Among the 28 directly-operated factories, 19 have been put into production, including 18 PC factories and 1 prefabricated decoration industrial park. The total PC design capacity It reached 1.16 million cubic meters, and the capacity release ratio was 47%.

In terms of regional distribution, it is concentrated in the Yangtze River Delta, the Greater Bay Area and Henan. In addition to its own directly-operated factories, in 2021, Zhuyou Zhizao Technology has successfully signed 1 leased factory, 1 asset-light factory and 4 Join the factory.

In terms of capacity expansion, the above-mentioned investors pointed out that the expansion in the next three years will be more cautious and will not be the same as the previous rhythm. The company tends to do the whole industry chain, and carry out expansion and layout based on quality, rather than blindly pursuing scale.

As for the specific expansion plan, the management said that it expects to add 1-2 factories this year, and will maintain this level next year.

In addition to the prudence in quantity, in terms of layout areas, Zhuyou Zhizao Technology will focus on central cities across the country and places with housing prices above 10,000 yuan, especially in areas where the implementation of prefabricated policies is guaranteed. In general, more attention should be paid to the Greater Bay Area, the Yangtze River Delta and other regions.

However, affected by the epidemic in the first quarter of this year, the factories of Zhuyou Zhizao Technology in the Yangtze River Delta region were also affected to some extent.

In response to the concerns of investors, the management also responded that the layout of Zhuyou Zhizao Technology is nationwide. At present, the overall performance of factories in the Greater Bay Area has been ahead of factories in other regions since the second half of last year.

The investor further quoted that the Huizhou factory of Zhuyou Zhizao Technology has obtained the certification of the Hong Kong Quality Bureau, and the products produced by the factory will be exported to the Hong Kong market in the future. At the same time, the Hong Kong market price is more advantageous, about 2-3 times that of the mainland. Therefore, the company will actively explore this market this year.

However, considering the logistics cost and related certification fees, the cost will also increase to a certain extent, but it is not enough to reach 2 times the current cost. Therefore, it is expected that the gross profit level in this market will have a significant increase compared to the domestic one.

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