The company released the 2022 China report, the revenue side of steady growth.
The company disclosed in its mid-2022 report that its operating income was 3.093 billion yuan, an increase of 13.1% over the same period last year, the net profit of returning to its mother was 412 million yuan, an increase of 10.1% over the same period last year, and the net profit of non-return was 369 million yuan, an increase of 12.3% over the same period last year.
For Q2 alone, the operating income was 1.691 billion yuan, up 15.3% over the same period last year; the net profit returned to the mother was 187 million yuan, up 8.99% over the same period last year; and the non-return net profit was 158 million yuan, an increase of 3.9% over the same period last year.
The expense rate has basically remained stable, and the gross profit margin has risen steadily.
1. In terms of business, the company's financial technology business achieved an operating income of 1.72 billion yuan, an increase of 9.43% over the same period last year, while urban intelligent business achieved an operating income of 1.38 billion yuan, an increase of 18.20% over the same period last year.
two。 From a geographical point of view, the growth rate of international business revenue is 24.6%, which is faster than that of domestic business.
3. The gross profit margin is 41%, an increase of 1pct compared with the same period last year. Among them, the gross profit margin of the financial technology business increased by 1.95pct compared with the same period last year. The gross profit margin of urban intelligence business is stable.
4. Sales expense rate, management expense rate and R & D expense rate reduce 0.82pct, 0.39pct and increase 1.44pct respectively. The overall expense rate is relatively stable.
5. The fair value change loss of 1.66 million yuan in the current period, compared with a profit of 17.7 million yuan in the same period last year, was mainly due to the recognition of performance against gambling income in the same period last year.
6. The net cash flow from operating activities was-720 million yuan, which was worse than that of the same period last year. It is mainly due to the year-on-year increase in the amount of cash paid for goods and services and paid to employees as well as for employees.
China has made great efforts to expand new scenes such as digital RMB; to tap overseas demand and further open up the market has benefited from the in-depth promotion of financial innovation, and the company has been shortlisted in all six major lines of cash equipment. especially in the postal group (including Postal Savings Bank of China) to achieve exclusive bid supply for the first time. On the other hand, the company keeps pace with the pilot promotion of digital RMB and is one of the few domestic enterprises with the ability to build a full chain of digital RMB scenarios. In the future, the deepening of financial innovation and the expansion of digital RMB pilot projects will bring more increments to the company's business. In terms of overseas business, the company's products and services have also entered more than 110 countries and regions around the world, and its growth is significantly higher than that of the domestic market.
Investment suggestion
It is estimated that the operating income from 2022 to 2024 will be 7.67 billion yuan, 8.71 billion yuan and 9.94 billion yuan, an increase of 13.1%, 13.5% and 14.1% over the same period last year. It is estimated that the net profit of returning to the mother is 950 million yuan, 1.11 billion yuan and 1.29 billion yuan, up 15.1%, 16.8% and 16.4% over the same period last year. The current market capitalization is 23 times, 20 times and 17 times PE for 2022-2024, maintaining a "buy" rating.
Risk hint
1) the promotion of digital RMB is not as expected; 2) the promotion of Financial Innovation Bank is not as expected; 3) the landing of digital government business is not as expected.