Main points of investment
The Institute issued a semi-annual report on 2022: the company's operating income in the first half of 2022 was 957 million yuan, an increase of 22.56 percent over the same period last year, and its net profit was 110 million yuan, an increase of 1.27 percent over the same period last year. Of this total, Q2 achieved an operating income of 598 million yuan, an increase of 24.91% over the same period last year, and a net profit of 65 million yuan, down 1.39% from the same period last year.
The company achieved an operating income of 957 million yuan in the first half of 2022, an increase of 22.56% over the same period last year. From a quarterly point of view, the company's Q1 and Q2 achieved revenue of 359 million yuan and 598 million yuan respectively, an increase of 18.84% and 24.91% respectively over the same period last year. Operating income achieved relatively rapid growth in the first half of the year, of which the Q2 quarter growth rate further improved, we believe that the company is mainly engaged in infrastructure design consulting business, driven by the stable growth policy of infrastructure, revenue is expected to maintain rapid growth in the second half of the year.
In the first half of 2022, the company achieved a comprehensive gross profit margin of 34.80%, a decrease of 2.77 percentage points over the same period last year, and a net profit margin of 11.63%, a decrease of 2.52 percentage points over the same period last year. Both gross profit margin and net profit margin declined to a certain extent, mainly due to the decrease of gross profit margin caused by the increase in operating costs of non-provincial business.
The company's expenses during the first half of 2022 were 158 million yuan, an increase of 15 million yuan over the same period last year, accounting for 16.53% of the revenue end, a decrease of 1.79% over the same period last year, mainly due to the decrease in the rate of management expenses.
The company's asset + credit impairment loss in the first half of 2022 was 47 million yuan, accounting for 4.87% of the income end, an increase of 2.03% over the same period last year, mainly due to the increase in bad debt losses on accounts receivable.
The net operating cash flow per share in the first half of 2022 was-0.31 yuan, an increase of 0.01 yuan over the same period last year, basically the same as the previous year.
Earnings forecast and rating: for the first time, the company's EPS from 2022 to 2024 is expected to be 1.08,1.18,1.28 yuan respectively, and the corresponding PE at the closing price on August 9 is 9.5,8.7 and 8.0 times respectively, giving a "prudent overweight" rating.
Risk hints: macroeconomic downside risks, lower-than-expected landing of existing orders, lower-than-expected project schedule, and bad debt risks in accounts receivable.