The company published its three-quarter report. Revenue for the first three quarters of 2022 was 650 million yuan, a growth rate of 42%, net profit of 78.79 million yuan, a growth rate of 0.5%, net profit of 79.66 million yuan after deduction, a growth rate of 11.2%. Among them, revenue for the third quarter alone was 220 million yuan, a growth rate of 73.5%, and net profit of the mother was 24.15 million yuan, a growth rate of 85.53%.
Net profit returned to the mother after deduction was 22.84 million yuan, a growth rate of 105.1%.
Revenue continues to grow, and orders are gradually accelerating. “Regulations on the Management of Seismic Resistance in Construction Projects” of September 1, 2021
Since the implementation of the mandatory policy, high-intensity zones have been increased from 287 districts and counties in the original 5 provinces and 47 cities to 648 districts and counties in 126 cities in 23 provinces. The coverage of the new earthquake key surveillance and defense zones includes 1,078 districts and counties, and the market space will expand from 2 billion to more than 15 billion dollars. Currently, a large number of projects are in the design stage, and it is expected that a large number of orders will be released after the project funds have been implemented. The company's Q3 revenue increased 73.5% year over year and 9.6% month on month. The amount of contract debt at the end of the third quarter was 39.42 million yuan, an increase of 16.8% over the end of the second quarter, indicating that the number of orders on hand began to accelerate slightly.
The overall gross margin trend has been restored, and cost management is good. The company's Q3 net profit margin was 10.86%, an increase of 0.95 percentage points over the previous year and a decrease of 0.2 percentage points from the previous month. Among them, the company's Q3 gross profit margin was 42.9%, which was basically the same as the previous year, falling 5.2 percentage points from the previous year. This was mainly due to the influence of individual projects with higher gross profit in Q2. Looking at the trend, Q3 gross margin increased 0.4 percentage points compared to the first half of the year, and the overall recovery stage is in progress. The fee rate for the Q3 period was 23.1%, down 5.7 percentage points from the previous year and 3.9 percentage points from the previous month. Expense control was good. The Q3 impairment loss was 12.29 million yuan, an increase of 7.57 million yuan over the previous year and an increase of 620,000 yuan over the previous month. This was mainly due to the increase in impairment accrual of accounts receivable due to the increase in revenue volume.
Cash flow performance was average during the business expansion period. The company's accounts receivable and notes for the first three quarters were 750 million yuan, an increase of 68.9% over the previous year, and received 501 million yuan in cash from the sale of goods and the provision of labor services. The cash received was 78.2%, down 9.6 percentage points from the previous year. Net operating cash flow was 44.77 million yuan, an increase of 30.8 million yuan over the previous year.
Investment advice: The company's net profit for 2022-2024 is estimated to be 130 million, 300 million, and 670 million yuan respectively. The corresponding PE is 113X, 50X, and 22X respectively. As a leader in the building shock absorption industry, the company benefits from policies catalyzing high growth in downstream orders, strong performance flexibility, short-term explosive and long-term growth, and maintaining a “buy” rating.
Risk warning: The market does not release as many risks as expected; competition increases risks.