occurrences
The company announced its interim results for 2022, achieving revenue of 52.8 billion yuan in the first half of the year, an increase of 24.1% over the previous year, and the net profit of the mother was 82 billion yuan, an increase of 47.0% over the previous year.
Brief review
Performance exceeded expectations, and gross margin increased. In the first half of the year, the company achieved operating income of 52.8 billion yuan, an increase of 24.1% over the previous year, and achieved net profit of 82 billion yuan to the mother, an increase of 47% over the previous year.
The decline in the three-fee rate was the main reason why the growth rate of Guimu's net profit was significantly higher than the revenue growth rate. In the case of a high increase in revenue, the company achieved good control of three fees. The company's three-fee rate in the first half of the year was 3.5%, down 0.4 percentage points from the same period last year. The increase in gross margin of nuclear power engineering and other businesses led to an increase in consolidated gross margin to 8.3% in the first half of the year, an increase of 0.14 percentage points over the same period last year.
There are plenty of on-hand orders, and the rise in nuclear power projects has led to an increase in new orders. As of June 2022, the company signed a new contract amount of 70.1 billion yuan, an increase of 10.6% over the previous year, and there are plenty of orders on hand.
Among them, the amount of new contracts signed in the nuclear power engineering business reached 20.3 billion yuan, an increase of 42.8% over the previous year.
In the first half of the year, the company signed new nuclear power project contracts including the nuclear island construction and installation project for units 3 and 4 in Haiyang, the nuclear island construction and installation project for units 3 and 4, the nuclear island installation project for units 5 and 6 of Lu Feng, the nuclear island installation project for the Xu Dabao units 3 and 4, and the construction project of Unit 5 (C-5 project) of the Chashima Nuclear Power Plant in Pakistan.
Nuclear power construction has accelerated, and the competitiveness of leading nuclear power construction has contributed to the high growth of the company's performance. In the context of the energy crisis, global nuclear power has warmed, many countries have restarted nuclear power construction, and China's nuclear power construction has also returned to an accelerated trajectory. It is estimated that by 2025, China's nuclear power will be around 70 GW, and the average annual compound growth rates of those in operation and under construction during the 14th Five-Year Plan period will be 6.5% and 23.5%, respectively. The company's high qualifications, leading technology and rich experience have created a high moat for nuclear power projects. Hualong 1 Fuqing Nuclear Power Unit 6, Karachi, Pakistan K3, and ACPR-1000 Hongyanhe Unit 6 were all ready for commercial operation in the first half of the year. As the batch construction of Hualong 1 progresses, China's nuclear power construction is expected to accelerate, and the fulfillment of sufficient orders for nuclear power projects will also boost the company's high performance growth.
Maintain buying ratings and raise profit forecasts. We raised the company's profit forecast. The 2022-2024 EPS was 0.78/0.93/1.05 yuan (the original forecast was 2022-2023 EPS of 0.72/0.84 yuan).
Risk warning: progress of the dual carbon policy falls short of expectations; nuclear power engineering business development falls short of expectations, PPP investment and operation risks