Incident: In 2022 H1, the company achieved operating income of 1,127 million yuan (+11.25% year-on-year) and net profit of 115 million yuan to the mother (-38.34% year-on-year). Among them, 2022Q2 achieved operating income of 658 million yuan (+10.06% year-on-year) and net profit of 80 million yuan (-45.86% year-on-year).
Comment:
The revenue growth of the main business was steady, and active strategic adjustments were made to optimize resource allocation. By product, the company's innovation base platform services/science and technology innovation operation services/new materials industry revenue increased 23%/-38%/13% year-on-year respectively in the first half of the year to 286/0.44/ 777 billion yuan. Among them, the decline in science and innovation operation service revenue was mainly due to the company's strategic contraction system promotion services. This move will help the company invest more high-quality resources into the industry, and all other businesses achieve steady growth.
Gross margin declined year over year, and expense ratio increased year over year. The company's 22H1 gross margin was 25.58% (year-on-year - 7.81 pct), mainly related to the construction of the Guangdong Lihe Park, upfront investment on the industrial side, and the increase in raw material prices in the packaging industry. The net interest rate for 22H1 was 9.04% (-10.48% year-on-year), mainly related to a decrease in gross margin and a 50% year-on-year decrease in profit and loss from changes in fair value due to fluctuations in the secondary market. The 2022H1 company's expense ratio was 25.68% (+3.73 pct), of which the sales expenses ratio was 4.22% (+0.54 pct), the management expenses rate was 11.87% (+0.69 pct), the R&D expenses ratio was 5.33% (+0.98 pct), and the financial expenses ratio was 4.26% (+1.52 pct). The increase in the financial expense ratio was mainly due to the increase in bank loans and medium-term notes and the costing of interest expenses after park project completion and acceptance.
The layout of science and innovation services has been deepened, and projects in strategic emerging industries have continued to be implemented. Adhering to the “scientific and technological innovation service+strategic emerging industry” development model, the company has always focused on the “double first-class” strategy to increase science and innovation services and industry empowerment for the country's strategic emerging industries, and promote the deep integration of industry, education and research. On the science and innovation service side, building 1 of Liangjing's new manufacturing base was successfully capped during the reporting period, and the invested company Qingyan Environment was successfully listed on the Science and Technology Innovation Board in April; on the industrial side, the subsidiary Shiyun Technology completed a round of financing, and self-destructing antiviral functional materials developed independently by Yunji were industrialized and widely used in scenarios such as the Winter Olympics, Shenzhen quarantine hotels, and some bank outlets. In March, the company announced that it will invest in the construction of the Zhuhai Lihe Optoelectronics Industrial Park, which will contribute to increased performance in the future.
Profit forecast: According to the adjusted profit forecast and target price in the interim report, net profit returned to the mother for 2022-2024 is estimated to be 513/ 613/ 714 million yuan respectively. The PE corresponding to the current stock price is 20.0/16.7/ 14.4x, respectively. Maintain a “buy” rating.
Risk warning: new business development falls short of expectations, raw material prices fluctuate