Main points of investment

The net profit of returning home in the first half of 2023 was 28.19 million yuan, an increase of 31% over the same period last year, in line with the forecast center.

In the first half of 2023, the company achieved revenue of 257 million yuan, an increase of 8.39% over the same period last year, and a net profit of 28.1897 million yuan, an increase of 30.95% over the same period last year. The non-return net profit was 19.7773 million yuan, an increase of 95% over the same period last year. In 2023, Q2 achieved revenue of 146 million yuan in the single quarter, an increase of 22.14 percent over the same period last year and 31.30 percent month-on-month growth. The net profit returned to its mother was 23.9935 million yuan, an increase of 275.54 percent over the same period last year, and an increase of 471.79 percent over the previous year. The performance of the medium report is in line with the notice center.

Profitability: the first half of 2023 gross profit margin 47.17%, year-on-year-2.3PCT, net profit 10.32%, year-on-year-1.77PCT. In terms of business, the gross profit margin of motor vehicle testing system is 53.8%, which is + 5.45PCT compared with the same period last year; the gross profit margin of motor vehicle testing service is 27.27%, year-on-year-14.88PCT, or under the influence of the relaxation of vehicle inspection policy in October 2022, the frequency and number of vehicle inspection have decreased, and with the increase in the number of motor vehicles and the age of vehicles in use, inspection and measurement is expected to gradually resume growth; detection operation value-added service gross profit margin is 73.42%, year-on-year + 1.68PCT.

Fee side: the rate for the first half of the year is 37.04%, year-on-year-2.30PCT. Among them, the sales rate, management rate and financial rate are 9.23%, 21.93% and-2.85% respectively, compared with-1.55PCT,-1.5PCT and-2.47PCT. Optimize the company's cost management and control ability. Increased R & D investment in the first half of the year, R & D costs increased by 71.59% year-on-year, R & D fee 8.73%, year-on-year + 3.22PCT, R & D team size and R & D strength industry leading.

The company is expected to benefit from the renewal of new energy vehicle inspection equipment, and has been committed to building a domestic vehicle inspection operation chain brand for a long time.

Vehicle detection system: revenue in the first half of 2023 was 148 million yuan, an increase of 1.37% over the same period last year, accounting for 57.65% of the total revenue. The company is the leader of the domestic vehicle inspection system, or will give priority to benefit from the introduction of new energy vehicle testing standards in the future. On June 30, 2023, the draft of "Inspection regulations for the Operation Safety performance of New Energy vehicles" was released to supplement the inspection of the operation safety performance of new energy vehicles. the required testing equipment involves four major testing items: power storage battery safety, drive motor safety, electric control system safety and electrical safety. It is expected that the testing content and difficulty of new energy vehicles will be improved in the future, and the raising of the industry threshold is expected to optimize the competition pattern. The company already has equipment and technology R & D reserves. After the formal introduction of the standard, it may give priority to benefit and become a new performance growth point of the company.

Operational services: in the first half of 2023, revenue reached 88 million yuan (testing services + operational value-added services), an increase of 7.32% over the same period last year, accounting for 34.40% of revenue. Among them, Linyi Zhengzhi, a subsidiary, had a revenue of 46.84 million yuan in the first half of the year, and a net profit of 23.41 million yuan, an increase of 23.25% over the same period last year. The company through acquisitions, new testing stations and other ways to explore the realization of operation service brand chain operation, is expected to become the company's long-term performance growth source. By the end of 2022, the number of testing stations directly operated by the company is 41. Since 2023, the company has acquired 11 new testing stations, continued to focus on expanding the vehicle testing operation service market, and accelerated the process of mergers and acquisitions of testing stations.

Profit forecast and valuation

It is estimated that the net profit of homing from 2023 to 2025 is 0.63,1.47 and 206 million yuan respectively, and the compound growth rate is 80.99% from 2024 to 2025 compared with the same period last year, corresponding to 61,26,18 times of PE.

Risk tips: 1) the vehicle testing policy is further relaxed; 2) the acquisition and integration of motor vehicle testing stations is not as expected; 3) the development of new business is not as expected.