Event: the company publishes its 2022 semi-annual report. The company achieved revenue of 589 million yuan in the first half of the year, an increase of 12.32% over the same period last year, and a net profit of 80 million yuan, down 37.22% from the same period last year. The revenue of Q2 alone was 328 million yuan, down 5.12% from the same period last year, and the net profit was 29 million yuan, down 68.8% from the same period last year.
Excluding share-based payment and credit impairment, the performance increased by 10.9%, and non-port business increased significantly compared with the same period last year. On the revenue side, under the influence of the H1 epidemic, most ports were closed, passenger entry and exit business stagnated, the company's customer procurement demand was delayed and the delivery and acceptance of some projects was delayed, and the smart port business decreased by 2.79% compared with the same period last year. Intelligent transportation and other businesses increased by 590.34% to 91 million yuan. On the expense side, the company continued to increase investment in R & D. in the first half of the year, R & D expenses increased by 39.77% compared with the same period last year, and the R & D rate reached 13.06%, a year-on-year + 2.56pct. In addition, H1 made provision for credit impairment and share payment fees of 40 million yuan and 21 million yuan respectively. Excluding the impact of share payment and credit impairment, H1 performance increased by 10.9% compared with the same period last year. In terms of gross profit margin, with the increase in the share of intelligent transportation and other businesses, H1 gross profit margin reached 42.67% from the same period last year-2.05pct. With the company's production and operation on the right track, it is expected that H2 and next year's performance will return to the positive growth channel.
Hainan customs closure project won the first battle, and it is optimistic that the company will continue to win the bid. The company closely tracks the demand of Hainan free trade port customs closure operation project, and has successfully won the bid for Sanya Port Nanshan Port project (97 million yuan), Haikou Xiuying Port project (147 million yuan), Haikou new seaport and South Port project (353 million yuan) in the first batch of construction projects since July, showing the company's high recognition and strong strength in the field of smart ports. In the 14th five-year Plan, the investment in Hainan water transport and aviation port construction amounts to 11.538 billion yuan, and the "second-line port" is required to have hardware conditions for customs closure by the end of 2023. We expect that H2 will usher in intensive bidding, and the company has been ploughing the intelligent port for more than 20 years. It is expected to continue to win the bid by virtue of the rich experience of successful cases in the overall solution of the intelligent port inspection system.
Investment suggestion: the company is the leading enterprise of domestic smart port, takes the lead in putting forward the concept of "smart port" and puts it into practice, has rich experience in port information construction and benchmarking cases, and is expected to undertake the dividend of Hainan free trade port construction by virtue of its own strength. The company set up a wholly-owned subsidiary in Nigeria in July to carry out in-depth cooperation with Huawei in the fields of smart ports and intelligent transportation, which is expected to open up a second growth curve overseas. It is estimated that the net profit of homing in 22-24 years is 250 million yuan, 500 million yuan and 590 million yuan respectively, corresponding to PE 28.2x, 14.1x and 12.0X, maintaining the "overweight" rating.
Risk tips: the epidemic repeatedly led to short-term performance pressure, product and technology research and development risk, profitability decline risk, accounts receivable impairment risk.
