Event: the company's 2022H1 realized operating income of 1.023 billion yuan, an increase of 44.05%, a net profit of 72 million yuan, an increase of 39.36%, and a non-return net profit of 67 million yuan, an increase of 45.08%. The comments are as follows:
The company's on-hand orders have increased significantly, and the main business has developed rapidly. In terms of products, the revenue of design consulting, electromechanical engineering system delivery, project contracting and equipment manufacturing was 2.26,3.31,0.64 and 366 million yuan respectively, an increase of 22.68%, 20.45%,-20.86% and 168.66% respectively. The proportion of the company's engineering general contracting business income further decreased, while the proportion of design consulting, electromechanical engineering system delivery and equipment manufacturing business continued to increase. In terms of industries, revenue from grain and oil processing, cold chain logistics and other industries accounted for 85.29%, 11.76% and 2.95%, respectively. On a quarterly basis, the revenue of 2022Q1 and Q2 increased by 71.62% and 31.28% respectively compared with the same period last year, and the net profit of returning home increased by 57.53% and 29.58% respectively.
The gross margin is lower, the expense rate is lower, and the cash flow is slightly improved. In terms of gross profit margin, 2022H1 gross profit margin decreased by 4.20 pct to 19.82%, including design consulting, electromechanical engineering system delivery, project contracting, and equipment manufacturing business gross profit margin decreased by 2.68,4.89,2.82,6.25 pct respectively, we believe that it is mainly due to the impact of the epidemic and the price of raw materials. In terms of the period expense rate, the period expense rate decreased by 2.56 pct to 12.78%, of which the sales expense rate decreased by 0.23 pct to 1.15%; the management expense rate (including R & D expenses) decreased by 2.46 pct to 12.42%; and the financial expense rate increased by 0.14 pct to-0.79%.
2022H1 net interest rate also decreased by 0.09 pct to 7.33%. The net operating cash outflow was 122 million yuan, a decrease of 6 million yuan compared with the same period in 2021, of which cash was 14.99 pct lower than the same period last year to 119.71%, and cash payment was 3.09 pct lower than the same period last year to 140.51%.
The major theme of food security, fully benefit from the national food security needs security needs. On July 28, the meeting of the political Bureau of the CPC Central Committee proposed that it is necessary to maintain the bottom line of security in all directions and strengthen food security. In 2022, the country's total summer grain output was 147.39 million tons (294.8 billion jin), an increase of 1.434 million tons (2.87 billion jin) or 1.0% over the previous year. All localities and departments attach great importance to grain production, continue to increase support for grain production, overcome the effects of unfavorable factors such as late sowing of winter wheat, rising prices of agricultural materials, and multi-point distribution of the domestic epidemic situation, and achieve a bumper harvest of summer grain. This has laid a good foundation for stabilizing grain production throughout the year, and provided a solid support for stabilizing prices, ensuring people's livelihood, stabilizing the economic market, and dealing with the uncertainty of the external environment. On August 15, the press conference of the National Development and Reform Commission in August once again proposed to ensure food energy security and the stability of the industrial chain supply chain. We will strengthen food security and ensure that the annual grain output is maintained at more than 1.3 trillion jin. We believe that the company, as a leader in the development of the agricultural grain and food industry, will fully benefit from the national food security needs.
Profit forecast and rating. The grain and oil industry continues to develop, and the construction of cold chain and ice and snow sports facilities ushered in great development. as a leader in the development of agricultural food and cold chain industry, the company has obvious advantages and is expected to fully benefit. At present, the company's high performance growth is continuing to be verified. We estimate that the EPS of the company in 22-23 is 0.54,0.81 yuan respectively. Considering the high performance growth in recent years, the company is given a price-to-earnings ratio of 45-46 times in 2022, a reasonable value range of 24.37-24.91 yuan, and a "better than the market" rating.
Risk hint. Payback risk, business development risk, policy risk.