22H1 revenue of HKUST increased by 42%. Keguochuang released the China report on the evening of August 22 that 2022H1 achieved revenue of 813 million yuan, an increase of 42.41% over the same period last year, a net profit of 62 million yuan, an increase of 12.37% over the same period last year, and a net profit of 33 million yuan, an increase of 2.15% over the same period last year.

Under the impact of the epidemic, it still maintained high growth, and Q2's revenue grew by 35% in a single quarter. The biggest highlight of Guochuang's report this time is the growth of the revenue side. The company's 22H1 achieved 810 million yuan in revenue, an increase of 42% over the same period last year, of which Q2 revenue in a single quarter was 470 million yuan, an increase of 35% over the same period last year. Taking into account the impact of repeated epidemics in the second quarter, the company still maintained the rapid growth of the revenue side, which is enough to show its strong growth momentum.

The smart car business has doubled, and the "dark horse" attribute of the new energy vehicle industry chain has been confirmed again. According to the specific split business, the revenue of the smart car business segment reached 234 million yuan in the first half of the year, an increase of 99% over the same period last year. Thanks to the rapid growth of Chery New Energy vehicle sales, which is a heavyweight customer, the smart car business with BMS as the core has doubled; the intelligent logistics business has achieved a revenue of 134 million yuan, an increase of 103% over the same period last year. After years of structural adjustment, the software platform business represented by intelligent logistics has rebounded. The total revenue of traditional software business (telecommunications, government) reached 440 million yuan, an increase of 15% over the same period last year. Under the background of repeated epidemic situation in the first half of the year, it is not easy for traditional business to achieve steady growth.

The apparent financial index is excellent and the management quality is stable. Judging from other business indicators, Guochuang maintained good business quality on the basis of high growth in the first half of the year. According to the cash flow index, 22H1's revenue grew by 42%, sales and cash flow increased by 50%, and operating net cash flow increased by 11%. Considering the remarkable seasonality of the company's traditional main business, the cash flow performance in the first half of the year was even more rare. The company's gross profit margin in the first half of the year was 37%, which was basically the same as that of the whole of last year, and the year-on-year growth rate of sales / management / R & D expenses was 34%, 41%, 33%, respectively, in line with the revenue growth trend. In addition, the company's inventory reached 368 million yuan in the first half of the year, an increase of 51% over the beginning of the year, mainly due to an increase in contract performance costs; contract liabilities were 143 million yuan, an increase of 57% over the same period last year. A number of financial indicators show that the company has maintained a good business quality while developing at a high speed.

Investment advice: we expect the company's revenue from 2022 to 2024 to be 25.6,36.9 and 5.07 billion yuan respectively, with year-on-year growth rates of 49%, 44% and 38% respectively, and the net profit of returning home is 1.4,2.5 and 400 million yuan respectively, with year-on-year growth rates of 35%, 79% and 59% respectively. The current market capitalization corresponds to 22-24 PE of 39-22-14 respectively. Taking into account the rapid growth of the company's BMS business, the traditional software business will still have a steady growth rate, the company is still the high growth target of the smart car industry chain, maintaining the "recommended" rating.

Risk hint: the risk of intensified competition in the industry; the growth of new energy vehicle sales is not as expected; the progress of customer expansion is not as expected; the landing progress of fixed growth is not as expected.