Events:

The company released its mid-2022 report. In the first half of 2022, the company achieved operating income of 370 million yuan, an increase of 10.86% over the same period last year, and a net profit of 30.9 million yuan, an increase of 4.71% over the same period last year. The non-return net profit was 27.76 million yuan, an increase of 7.74% over the same period last year.

Comments:

Landscape architecture design service provider and general contractor with good brand image. The company was founded in 2001, listed on the Shenzhen Stock Exchange in 2017, and is controlled by he Wei, Gao Yan and other senior executives. The company is mainly engaged in landscape design services and project general contracting services with the overall solution as the core. With landscape design works such as the comprehensive protection project of the West Lake Scenic spot, Xixi National Wetland Park and the G20 Summit in Hangzhou, China, "Hangzhou Landscape Design Institute" enjoys a certain popularity in the country and has a good brand image.

The performance has come out of the trough and the growth rate has returned to positive. In 2021, under the influence of the domestic epidemic, the macroeconomic environment and the calculation of bad debts from accounts receivable, the company achieved operating income of 749 million yuan, down 7.17% from the same period last year; operating profit of 35.9155 million yuan, down 38.36% from the same period last year; and net profit of 32.6649 million yuan, down 35.06% from the same period last year. In 2022, the company consolidated its core advantages, expanded the horizontal and deep areas of the industrial chain, and achieved good results, with positive growth in revenue and return net profit in the first half of the year.

Under the double carbon strategy, the development of the company is expected to borrow strength. Under the double-war strategy, the importance of garden ecology has been improved. According to the 14th five-year Plan, by 2025 / 2035, China's forest coverage should reach 24.1%, 26%, with room for improvement of 1.14pct / 3.04pct compared with 22.96% in 2020, and the overall development of the landscape industry is expected to accelerate. The company relies on the "Hangzhou Garden" brand, has a strong ability to obtain orders, the development of the company is expected to borrow power.

Coverage for the first time, giving a "overweight" rating. It is estimated that the net profit of the company vested in the parent company from 2022 to 2024 is 35.48 million yuan / 39.72 million yuan / 43.36 million yuan, corresponding to the EPS of 0.27, 0.30 and 0.33 yuan.

Wind insurance tips: payback risk, new business development risk, company performance is not as expected