Events:
The company released its results for the first half of 2023, KuaiBao. In the first half of the year, the company realized operating income of 1.125 billion yuan, a decrease of 0.17% over the same period last year. It realized a net profit of 224 million yuan, an increase of 95.07% over the same period last year. It realized a deduction of 85 million yuan in non-net profit, an increase of 52.78% over the same period last year. 2023Q2 realized a net profit of 174 million yuan, an increase of 117.50% over the same period last year.
The company continues to strengthen the conversion of scientific and technological achievements, and its performance has increased significantly compared with the same period last year. During the reporting period, the company accelerated the promotion of investment incubation service business, and continued to enhance the transformation of scientific and technological achievements. In the first half of the year, the performance of the enterprises incubated by the company increased, and the equity value increased, so that the fair value change income and long-term equity investment income of the company increased significantly compared with the same period last year.
China has accelerated the promotion of scientific and technological self-reliance, and the demand for scientific and technological services in the industry is constantly expanding. According to the Forecast report on the Competition pattern and Development trend of China's Science and Technology Service Industry from 2022 to 2026, it is estimated that the supply of science and technology service market will reach 2.71 trillion yuan and the demand will reach 2.63 trillion yuan in 2025. The company's priority layout is expected to benefit from the first-mover advantage, resource advantage and brand advantage.
Scientific and technological innovation services continue to deepen cooperation and expand resources, and vigorously promote the transformation of scientific and technological achievements. The company adheres to the development model of "scientific and technological innovation services + strategic emerging industries", always increases the scientific and technological services and industrial empowerment of national strategic emerging industries around the "double first-class" strategy, and promotes the deep integration of industry-university-research.
1) relying on the controlling shareholder, the Research Institute of Tsinghua University in Shenzhen, to establish stable cooperative relations with universities, research institutes and high-end scientific and technological talents at home and abroad, so as to realize the advantage of gathering scientific and technological resources. 2) around the industrial system of "one city, one industry", promote base construction in an orderly manner and provide landing resources for service enterprises. By 2022, the company has 38 scientific and technological innovation bases nationwide, including 11 national incubators and mass innovation space. 3) the company's entrusted management fund belongs to the support system in the early stage of the transformation of scientific and technological achievements, which helps the company focus on the transformation of scientific and technological achievements.
The company's three strategic emerging industries are making steady progress. 1) Lixing Technology: the company's OEM and export business are growing steadily; the core product plastic hose occupies the forefront of the industry; many products have passed the association's test and certification and have been applied, and the company accelerates the transformation and upgrading to ODM services in the whole cosmetics industry chain. 2) Digital Cloud Interdisciplinary: the company is an important standard-setting member of the information model industry; won the bid and signed the first government-side BIM quality inspection service contract in Shenzhen. By the end of 2022, the company has provided services to key customers of many governments and enterprises. 3) Lihe Yunji: the company's products have been applied in hotels, bank outlets, hospitals and other public areas; a series of anti-virus products have been launched for personal protection.
Profit forecast: according to the semi-annual report performance forecast, adjust the profit forecast. It is estimated that the company's return net profit from 2023 to 2025 is 5.4 / 6.4 / 780 million yuan respectively, with year-on-year growth of + 30.5% / + 18.0% Universe 21.2%, corresponding to 20x/ 17x/ 14x respectively, maintaining the "Buy" rating.
Risk hints: new business development falls short of expectations; raw materials fluctuate; performance forecasts and valuation judgments fall short of expectations.