Event: 1) Renner Intelligence released the third quarterly report of 2022, the company achieved operating income of 173 million yuan in the first three quarters of 22, an increase of 37.34% over the same period last year, and a net profit of 35 million yuan, an increase of 190.23% over the same period last year. Of this total, 22Q3 achieved an operating income of 77 million yuan, an increase of 39.10% over the same period last year, and a net profit of 16 million yuan, an increase of 333.35% over the same period last year. 2) on September 9, Weihai Thermal Power Group Co., Ltd. announced the winning result of the intelligent heating system transformation project in 2022. Ruina Intelligence won the first bid with a comprehensive score of 89.92, and the winning amount was 129.5 million yuan.
Revenue and profit increased both in the first three quarters of 22 years, and the continuous performance of on-hand orders has strong certainty. In the first three quarters of 22, revenue reached 173 million yuan, an increase of 37.34 percent over the same period last year, and net profit reached 35 million yuan, an increase of 190.23 percent over the same period last year. It is mainly due to the increase in sales of heating and energy-saving products of the company in this period. Since August and September, large and small orders have won the bid one after another, including the intelligent heating system renovation project of Weihai Electric Power Group in 2022, with the winning bid amount of 129.5 million yuan; orders below 100 million yuan have won the bid amount of 84.983 million yuan in Linshu County city low-carbon intelligent heating upgrading project (phase I), and the 44.9835 million yuan EPC project of Weihai Thermal Power Group Co., Ltd. The company's performance is seasonal, and the annual performance mainly depends on the confirmation of the fourth quarter. The company has more abundant orders on hand, and with the gradual delivery of orders, it supports the high growth of annual performance.
In the first year of intelligent heating, the policy continued to increase. In October, the Ministry of Housing and the National Development and Reform Commission jointly issued a circular entitled "further clarifying the requirements for aging, renewal and renovation of urban gas pipelines". It is mentioned that the provincial plan for the aging and renovation of heating pipelines in provinces and cities (counties) will in principle be completed by the end of October 2022. This year, the state has successively launched a series of policies and issued special bonds to support the energy-saving transformation of heating. With the gradual clarity of the structure of the double carbon goal, the future policy may tend to be detailed and indexed.
Investment suggestion: as the domestic intelligent heating leader, the company is committed to providing one-stop intelligent heating solution with the integration of software and hardware. Short-term orders are good, long-term benefit from the rapid development of the industry and policy support, long-term and short-term logic is smooth, the Fourteenth five-year Plan period is expected to enter the development of the fast lane, the company is expected to 2022-2024 EPS of 3.17 EPS 4.25 ppm 5.56 yuan, corresponding to PE for 21X/16X/12X, maintain the "overweight" rating.
Risk tips: business promotion is not as expected risk; energy-saving heating transformation of the old community is not as expected; intelligent software system development is not as expected; the company's newly signed order implementation is not as expected.
