Event: the company disclosed its semi-annual report of 2022 that in the first half of the year, its main business income and income totaled 390 million yuan (YoY+29%), net profit 180 million yuan (YoY+7%), and earnings per share 0.17 yuan (the same period last year: 0.17 yuan).
Overall: 1) the revenue from the implementation of digital financial solutions / platforms by 22H1 is 300 million yuan / 30 million yuan, accounting for 78.3% of revenue contribution. 2) both digital finance and industrial Internet have achieved a double increase in revenue and scale, but business expansion has led to an increase in operating expenditure, resulting in a net profit growth rate of only + 7%.
The financial scale of the supply chain continues to expand, and the proportion of income contribution increases significantly. 22H1, the company's revenue from digital financial solutions increased by 51% to 300 million yuan compared with the same period last year, and its contribution to revenue increased by 11.3pct to 78.3%, of which interest income was + 52% to 290 million yuan year-on-year. As of 22H1, the average daily balance of supply chain assets is about 8.3 billion yuan (YoY+52%), the cumulative processing scale is about 145.6 billion yuan (YoY+27%), and the business expansion continues to advance. Considering the accelerated landing of inclusive financial policy and the repeated epidemic situation aggravating the financing demand of small and medium-sized enterprises to a certain extent, the scale of supply chain financial services is expected to be further expanded. and rely on the advantages of the existing industrial chain and risk control capabilities to contribute to performance increment.
Platform business continues to grow, and cooperation deepens to open up room for growth. 22H1, the company realized platform service income of 30 million yuan (YoY+26%), accounting for-0.2 pct to 7.6% of revenue contribution compared with the same period last year. As of 22H1, the cumulative number of customers of the company's platform has reached 11400 (YoY+39%), the number of financial partners has increased to 91 (YoY+47%), and the average daily balance of Pratt & Whitney matchmaking on the platform is about 1.6 billion yuan (YoY+16%). The company's 22H1 defect rate has been maintained at 0.1%, and has been enhanced by China Construction Bank Corporation and Ningbo Tongshang Bank. With excellent asset quality, the company is expected to deepen cooperation with the capital side and steadily expand the business scale of the platform.
The application of digital technology is accelerated and the transformation of digital intelligence of the industry is promoted. 22H1, the company achieved supply chain science and technology service income of 284000 yuan, relatively small volume but continuous cooperation, rapid expansion of intelligent construction site and hospital SPD business, successfully won the bid to build a number of intelligent site projects, and reached cooperation with the leading domestic pharmaceutical circulation group. As of the performance announcement day, the company's industrial Internet sector has won bids and signed contracts of about 78 million yuan, a substantial increase of about 15 times over the whole of last year, and is expected to further cultivate the scene of digital technology and industrial integration.
Investment advice: maintain a buy-An investment rating. The company promotes the "dual-drive + big platform" strategy, the business territory is constantly expanding, and the ecological layout has achieved remarkable results. With the accelerated integration of the capital side and the important participants in the supply chain ecology in the future, it will further promote the platform development of the company and the win-win cooperation of the industry. We estimate that the BPS of the company from 2022 to 2024 will be 4.30 yuan / 4.50 yuan / 4.80 yuan respectively, with a target price of 6.2HK dollars, corresponding to 1.3times 2022E Pdebarb B.
Risk hint: large fluctuations in capital markets / less than expected strategic advance / macroeconomic downturn