Event: on August 24, the company released its 2022 semi-annual report. In the first half of 2022, the company achieved operating income of 1.46 billion yuan, an increase of 9.06% over the same period last year, a net profit of 398 million yuan, an increase of 1156.21%, and a non-net profit of 51 million yuan, an increase of 212.15% over the same period last year. In terms of subdivision, industrial digitization, financial digitization, pan-ERP business and IT outsourcing business achieved operating income of 3.54,3.34,5.17 and 245 million yuan respectively, up 38.88 per cent, 21.76 per cent, 6.53 per cent and 1.67 per cent respectively over the same period last year.
The gross profit margin increased year-on-year and the net profit increased significantly. In the first half of 2022, the company achieved an overall gross profit margin of 29.57%, an increase in 2.14pct compared with the same period last year. In terms of subdivision, industrial digitization and financial digitization business achieved gross profit margins of 34.57% and 28.74% respectively, up 8.44% and 5.52pct respectively over the same period last year. The reasons for the substantial increase in net profit: 1) the former associated enterprise Zhenhui science and technology restructuring and capital expansion, the company will no longer have a significant impact on it, the company's remaining equity accounting according to financial assets brought about a substantial increase in non-recurrent profit and loss; 2) gross profit increased by 64.5718 million yuan; 3) impairment loss decreased by 19.5437 million yuan; 4) exchange loss decreased by 29.3302 million yuan compared with the same period last year. If excluding the factors that the original holding subsidiary Dingyue information table and the associated enterprise is in the incubation investment period, the company's net profit after deduction can reach 93.11 million yuan.
Emerging business is the main driver of growth, with rapid growth in the first half of the year. After years of development and reform, the company has changed from a simple ERP implementation service provider to a digital integrated service provider more in line with the needs of the large enterprise market. On the basis of consolidating the competitiveness of the original traditional service business, the company takes industrial digitization + financial digitization as the main growth direction. In the first half of 2022, the revenue of emerging businesses (industrial digitization + financial digitization) reached 688 million yuan, an increase of 30.01% over the same period last year, and the proportion of revenue also increased to 47.11% from 39.52% in the same period last year. Among the emerging businesses, the industrial digital business based on "intelligent manufacturing" and "digital marketing" has increased significantly:
1) in the field of intelligent manufacturing, the company's business in the fields of power and energy storage batteries continues to grow at a high speed, and relying on its head customers, the company's service capability extends to the upstream and downstream of the new energy industry; 2) in the field of intelligent marketing, the company's digital marketing orders continue to maintain high growth. Pan-ERP of traditional business decreased slightly, mainly due to the impact of the epidemic, the delay in the launch of such projects by some clients, and the deployment of personnel in some overseas business projects affected by travel restrictions.
The reform of the delivery mode has achieved initial results, and the efficiency has been improved. With the gradual maturity of the company's technology platform and product applications, and the large number of delivery projects, the company will clearly carry out the reform of the delivery model in 2021: the company will strive to change to service industrialization and gradually increase the intensity of centralized delivery. improve the degree of fine management of projects in each work link, deploy personnel according to the specialized division of labor, and achieve standardization and automation in delivery. In the first half of 2022, the company unswervingly implemented this strategy, gradually increased the intensity of delivery mode reform, and actively planned the construction of a new generation of centralized delivery center, so the efficiency was significantly optimized and the profit level was improved.
Investment suggestion: the company's revenue from 2022 to 2024 is expected to be 32.76,39.25 and 4.777 billion yuan respectively, with year-on-year growth rates of 16.54%, 19.82% and 21.70%, respectively. The net profit of homing was 5.00,3.08 and 481 million yuan respectively, and the year-on-year growth rate was 153.93%,-38.42% and 56.08% respectively. From 2022 to 2024, the EPS was 0.57,0.35,0.54 respectively, and the corresponding PE was 15,25 and 16 respectively. Cover for the first time, giving a "buy" rating.
Risk hint: the promotion of emerging business is not as expected, the epidemic situation of COVID-19 is repeated, and the reform of delivery mode is not as expected.