Event description
The State Inspection Group issued the 2022 report and the 2023Q1 quarterly report. In 2022, the company achieved revenue of 2.428 billion yuan, an increase of 9.5% over the same period last year; net profit of 253 million yuan, up 0.1% from the same period last year; revenue of 940 million yuan, down 0.1% from the same period last year; and net profit of 175 million yuan, an increase of 8.5% over the same period last year. Prior to the performance, KuaiBao had a revenue of 2.454 billion yuan and a net profit of 253 million yuan.
2023Q1 achieved revenue of 468 million yuan, an increase of 14.68% over the same period last year, and its net profit was-24 million yuan, slightly narrower than 2022Q1's-28 million yuan.
Event comment
The epidemic and real estate dragged down revenue in 2022. In 2022, the company's revenue growth rate has obviously increased by business segment: 1) Inspection and testing revenue of 1.744 billion yuan, an increase of 11% over the same period last year, of which engineering testing / material testing / environmental testing / food and agricultural testing increased by 3.5%, 3.5%, 2.3%, and 76.4%, respectively, and medical testing also contributed 79 million yuan in revenue. In addition to the high growth of food farmers' testing due to the combination of Fan Tian expansion (Liaoning Fengtian in 2021) and the integration effect of Anwei Tuowei, engineering / material / environmental testing is dragged down by the epidemic or the real estate industry, and the performance is average. 2) the revenue of testing instruments and intelligent manufacturing is 371 million yuan, which is basically the same as the same period last year. The operation park of the steel and cement industry downstream is difficult to lead to the contraction of capital expenditure, and the order growth of Shanghai Menuofu is not as expected. 3) revenue from certification services was 97 million yuan, up 4.4% from the same period last year. 4) revenue from metrology and calibration was 23 million yuan, an increase of 75% over the same period last year. The merger and acquisition of Yantai Fangyuan in 2021 led to the expansion of the country; 5) the revenue from scientific research and technical services was 188 million yuan, an increase of 14.8% over the same period last year, the target revenue growth rate in 2023 was 21.1%, and the revenue growth rate in the first quarter improved from the previous quarter. 2023Q1 achieved revenue of 468 million yuan, an increase of 14.68% over the same period last year, and the growth rate improved month-on-month. With the receding of the domestic epidemic and the gradual recovery of the real estate industry, as well as the promotion of epitaxial mergers and acquisitions, revenue growth is expected to pick up in 2023. The company announced a target revenue of 2.94 billion yuan this year, a year-on-year increase of 21.1%, and a total profit of 440 million yuan, an increase of 18.5% over the same period last year.
The net interest rate in 2022 was 14.06%, a year-on-year drop of 1.77pct. In 2022, the gross profit margin was 44.6%, which was basically the same as the same period last year, of which the gross profit margin for testing was 45.6%, which was down 2.0pct from the same period last year. Certification services and metrological calibration also declined, and the gross profit margin for testing instruments and intelligent manufacturing increased 5.34pct over the same period last year. The gross profit margin of scientific research and technical services increased 5.26pct. During the period, the expense rate was 29.5%, which increased 2.57pct compared with the same period last year, and the sales / management / R & D / financial expense rate increased to varying degrees.
Operating cash flow deteriorated slightly in 2022. The net cash flow of business activities in 2022 was 276 million yuan, down 28.8% from the same period last year, and the cash flow deteriorated. Accounts receivable at the end of 2022 increased by 38.2% compared with the beginning of the year, which was higher than the revenue growth rate, which was presumed to be related to the increase in financial pressure on local governments during the epidemic period and the impact of the cold winter on the real estate industry's ability to pay. The net cash flow of 2023Q1 operating activities is-106 million yuan, which is better than that of-112 million yuan in the question period last year.
It is planned to issue 800 million yuan of convertible bonds to replenish funds and optimize the structure. The company plans to issue 800 million yuan of convertible bonds for Hunan Huake Laboratory, Hunan Company, Hebei Xiongan Laboratory, carbon emissions management platform construction and some acquisition projects to supplement funds to accelerate future development and optimize the company's financial structure.
Profit forecast and valuation: the company's revenue from 2023 to 2025 is expected to be RMB 204max 35.7 / 4.24 billion, an increase of 21.3% over the same period last year, an increase of 21.3% over the same period last year, and a year-on-year increase of 26.1%, 24.1% and 22.3%, corresponding to the PE valuation 27.2x/21.9/17.9x. Maintain a "buy" rating.
Risk hint
1, the risk of credibility and brand affected by adverse events; 2, the decision-making risk of M & An and the risk of integration after M & A.