Event: the company publishes its 2022 semi-annual report. During the reporting period, the company achieved revenue of 663 million yuan, an increase of 4.46% over the same period last year, a net profit of 72 million yuan, a decrease of 8.56% over the same period last year, and a deduction of 74 million yuan for non-net profit, an increase of 11.81% over the same period last year.
The performance improved steadily as scheduled, and the operating cash flow improved. In the first half of 2022, the company achieved revenue of 663 million yuan, an increase of 4.46% over the same period last year. Of this total, EPC's revenue was 184 million yuan, an increase of 13.61 percent over the same period last year. The net profit returned to the mother was 72 million yuan, down 8.56% from the same period last year, mainly due to the decrease in the fair value of the invested funds compared with the same period last year. The deduction of non-net profit was 74 million yuan, an increase of 11.81% over the same period last year. During the reporting period, the net cash flow of operating activities was 8 million yuan, an increase of 138 million yuan compared with the same period last year, mainly due to the increase in the collection of the total contract business of the project in the current period.
The company's gross profit margin was 28.59%, an increase in 2.17pct over the same period last year, and a net profit margin of 10.87%, a decrease in 1.44pct compared with the same period last year.
Expand the market in all directions. The amount of new contracts signed by the company in the first half of 2022 is basically the same as that of the same period last year. The company is actively expanding new business areas, signing a large number of major projects in emerging industries in the first half of 2022, such as the general technology China Automobile Research Institute in the Yangtze River Delta and the East China headquarters production base project, and the new project of NIO Inc. Power Technology Co., Ltd. Hefei plant. The company has molecular companies in East China, South China, Southwest, Northwest, North China, Central China and Northeast China to cooperate with each other to expand the business market for the company.
Zhejiang Branch of the company has received a series of good reports, led by Zhongheng Design, newly signed Shancheng Center (temporary name) whole-process engineering consulting service, Shaoxing Keqiao District Ma'an Hospital construction project whole-process engineering consulting and other projects, further enhance the company's influence in the Yangtze River Delta region.
We will actively distribute green buildings, BIPV and other cutting-edge industries. During the reporting period, the company actively tracked and explored the theoretical frontiers and scientific and technological practice of the architectural design industry, promoted the R & D and innovation of architectural science and technology, continuously strengthened the research and development of BIPV, BAPV, energy-saving and green building, prefabricated building, BIM, complex structure and other technologies, and actively promoted the research of urban renewal (including urban diagnosis), high-end industry, education, medical and other construction products. The company headquarters and Zhongheng Huazao both won the enterprise credit rating of 100 An and were selected as the investment project participants of Suzhou Municipal Government in 2022.
Investment suggestion: the company's revenue in 2022 is expected to be 2.011 billion yuan, an increase of 12.09% over the same period last year, with a net profit of 200 million yuan and an EPS of 0.72 yuan per share. The corresponding share price PE is 13.09 times, maintaining the "recommended" rating.
Risk tips: the risk of intensified market competition; the risk of COVID-19 epidemic affecting the progress of the project; the risk that the recovery of accounts receivable is not as expected.