Hongrun Construction released its semi-annual report for 2022: the company's operating income in the first half of 2022 was 4.067 billion yuan, down 11.24% from the same period last year, and its net profit was 159 million yuan, down 9.05% from the same period last year.
Of this total, Q2 realized operating income of 2.001 billion yuan, down 1.60% from the same period last year, and realized net profit of 56 million yuan, down 18.51% from the same period last year.
The company achieved operating income of 4.067 billion yuan in the first half of 2022, down 11.24% from the same period last year. The operating income of construction and municipal infrastructure investment business and real estate business changed by-34.56% and + 487.41% respectively compared with the same period last year. In the case of the great impact of the Q2 epidemic, the decline in revenue has narrowed compared with the previous value, which is basically the same as that in the same period last year. In the second half of the year, with the rapid progress of the project in the Yangtze River Delta, the company's revenue is expected to become regular year-on-year and achieve rapid growth.
In the first half of 2022, the company achieved a comprehensive gross profit margin of 10.11%, a decrease of 1.62 percentage points over the same period last year, and a net profit margin of 3.69%, an increase of 0.03 percentage points over the same period last year. The decrease of gross profit margin and the increase of net profit margin are mainly due to the decrease of expense rate during the period of the company and the reversal of asset + credit impairment.
The net operating cash flow per share of the company in the first half of 2022 was 0.27 yuan, an increase of 0.23 yuan over the same period last year, mainly due to the increase in the collection of receivables in Q1 and the decrease in external settlement and payment business affected by COVID-19 's epidemic. In terms of the ratio of income to cash, the ratio of income to cash in the first half of 2022 was 102.2% and 101.8% respectively, a decrease of 10.7 percentage points and 17.2 percentage points respectively over the same period last year.
Earnings Forecast and rating: we have adjusted our profit forecast for the company. It is estimated that the EPS of the company from 2022 to 2024 will be 0.40,0.48,0.56 yuan respectively, and the corresponding PE of the closing price on August 19 will be 13.5,11.4 and 9.6 times respectively, maintaining the "prudent overweight" rating.
Risk hints: macroeconomic downside risks, lower-than-expected investment in infrastructure and municipal rail transit, deteriorating cash flow, and lower-than-expected risks in new business development.