In the first half of the year, the company delivered a number of major port projects, but the overall revenue recognition was delayed by the epidemic. The company implements the equity incentive plan, further increases R & D investment, and collaborates with Huawei to open up overseas markets to enhance long-term growth momentum. Continue to strongly recommend.
Event: the company's revenue in the first half of the year was 524 million yuan (YoY+ 19.7%), the net profit was 127 million yuan (YoY+9.7%), and the non-return net profit was 110 million yuan (YoY-0.5%). 21Q2 single-quarter income YoY+21.9%, return net profit YoY+ 28.5%, deducting non-home net profit YoY+ 12.7%.
The port business is progressing steadily, and the epidemic affects income recognition. Affected by the epidemic, most of China's ports were closed in the first half of the year, most of the entry and exit business was at a standstill, and some of the company's projects were delayed in delivery and acceptance, which had an impact on revenue recognition. In terms of project delivery, the company has completed the delivery of major projects such as the Chengdu Tianfu International Airport Port Project and the Jinan Airport North finger Corridor renovation Project, among which the Chengdu Tianfu International Airport project is the overall solution project with the most complete product category of the procurement company so far, which has benchmarking significance in the application and promotion of the overall solution of the company's intelligent port inspection system. We expect that with the gradual elimination of the impact of the epidemic and the promotion of domestic port construction, the company's port business will gradually pick up.
We will increase investment in research and development, implement equity incentive plans, and enhance the momentum of long-term performance growth. The company's R & D expenditure YoY + 70.65% in the first half of the year is much higher than the revenue growth rate. The company introduces a number of Guangdong Province Pearl River Talent Program overseas young talents, doctors and other high-end talents, the total number of R & D personnel is close to 500.
Driven by continuous R & D investment, the company's innovative business development, such as AI products and AI+ systems, has achieved initial results:
AI city management cloud has been accessed by many customers, and a series of urban management planning products have brought actual governance improvement to many city management departments. In addition, the company launched a 2021 restricted stock incentive plan, which deeply binds the interests of core backbone personnel and the interests of the company to further drive performance growth.
In conjunction with Huawei, we will actively expand overseas markets and open up new space for business growth. At the beginning of the year, the company set up the overseas Marketing Department and cooperated deeply with Huawei. In the field of smart ports, the company issued a joint solution of customs smart ports in the Middle East, and reformulated the benchmarking scheme and structure of overseas-oriented customs smart ports and other scenarios.
In the field of intelligent transportation, the company and Huawei have participated in the pre-design of intelligent transportation products in many countries, in which the multi-national license plate recognition algorithm has supported all kinds of license plate recognition in more than 30 countries or regions at the same time. Intelligent management terminals, multinational license plate recognition, special vehicle supervision, personnel behavior supervision and other products have been applied in Serbia, Saudi Arabia, Bangladesh and other countries.
Maintain the "highly recommended-A" investment rating. It is estimated that the net profit for 21-23 years will be RMB 543 million.
The port information leader, the competition barrier is deep, maintains the "highly recommended-A" rating.
Risk hint: the port investment is not as expected; the landing of new business is not as expected; overseas market policy risk.