According to the company's mid-2020 report, the company's revenue in the first half of the year was 1.814 billion yuan, down 4.9%; the net profit returned to its mother was 16 million yuan, 79.8% less than EPS 0.01, and 83.3%. The data of the company improved significantly in the second quarter, among which the reduction of expense rate was obvious.
Support the main points of rating
The revenue growth rate increased, and the expense rate decreased significantly: the company's Q2 revenue was 989 million yuan, an increase of 38.7%, and a net profit of 10 million yuan, a decrease of 2.84%. The company's Q2 gross profit margin is 17.6%, with a decrease of 1.8 pct. The rates of sales, management (including R & D) and financial expenses are 1.5%, 5.6% and 4.2% respectively, down 1.3,4.4 and 2.3pct respectively from the same period last year. The operating cash flow of Q2 company is 331 million yuan, with a decrease of 42.4%; the debt ratio is 69.3%, which is basically the same as the same period last year; and capital expenditure has declined from the same period last year. Q2 financial performance shows that the company's revenue growth has rebounded, the expense rate has dropped significantly, and profitability has improved significantly compared with the same period last year.
The number of newly signed orders increased in the second quarter, and the growth rate of public clothing projects was obvious: the company's Q2 order improved significantly, of which the newly signed public order was 960 million yuan, an increase of 114.6%, and the home decoration order was 184 million yuan, an increase of 15.0%. It is mainly due to the increase in cooperation projects between the company and Huawei.
Expense rate control + EPC expansion + order volume, profitability will be improved: in the past period of time, the company has made more impairment losses, and asset quality has improved. As the company gradually increases the proportion of EPC projects and strengthens the control of expense rate, the company's net interest rate has more room for improvement. With the growth of the company's orders, the company's asset turnover is expected to increase, and the overall profitability has a lot of room for improvement.
The conversion stock price has been revised down at one time, and the cash expenditure pressure has been alleviated: recently, the company has lowered the convertible bond conversion stock price at one time, the possibility of triggering the compulsory redemption clause has been greatly reduced, the possibility of equity conversion in the future has increased, and the pressure on the company's cash expenditure has been alleviated.
Valuation
The risk of impairment of the company is released, and the profitability will be improved. However, considering the impact of the epidemic, the company's performance forecast is reduced. it is estimated that from 2020 to 2022, the company's revenue will be 40.9,46.0 and 4.91 billion yuan, its net profit will be 0.9,1.3 and 130 million yuan, and its EPS will be 0.07,0.10,0.11. The main risks of maintaining a company's increased rating
The decline in official business orders, the decline in the profitability of education, convertible bonds trigger the return of financial pressure.