Incident: The company announced that 2023H1 achieved revenue of 705 million yuan, a decrease of 18.08%; net attributable profit of 0.7 million yuan, an increase of 4.42%; net profit of non-attributable net profit of 42 million yuan, a decrease of 7.41%. Among them, 2023Q2's quarterly revenue of 447 million yuan fell 7.48%; net attributable profit of 66 million yuan fell 7.03%; net profit after deducting 53 million yuan, and net profit of 53 million yuan fell 10.11%.
The revenue side was under pressure in the first half of the year, and the amount of new orders signed achieved a relatively rapid growth rate. By business, the company's 2023H1 architectural design, cost consulting, general engineering contracting, and full-process consulting and agency management achieved revenue of 5.46/0.64/0.8/012 billion yuan, respectively, down 14.48%/11.29%/30.55%/62.04%, respectively. Among them, gross margins for architectural design, cost consulting, and general engineering contracting were 31.34%/21.60%/4.10%, respectively, with year-on-year changes of 0.12pct/3.96pct/-2.64pct. Judging from the number of new orders signed, the company's 2023H1 architectural design business signed a new contract of 939 million yuan, an increase of 19.85%. Among them, the prefabricated design/cost consulting/general engineering contracting and full-process engineering consulting business signed a new contract of 598/105/115 million yuan respectively, a year-on-year change of 73.26%/-22.60%/-54.32%. It is expected that it may be gradually released in the second half of the year.
The level of gross profit improved slightly, and the impairment loss rate dropped sharply. 2023H1 achieved a gross profit margin of 27.19%, an increase of 0.88 pct; an increase of 0.71 pct for the period of expenses of 16.26%. Among them, the company's sales/management and R&D/financial expense ratios were 2.30%/13.56%/0.40%, year-on-year change - 0.01 pct/0.57 pct/0.15 pct; asset and credit impairment loss rate of 1.51%, same decrease of 2.49 pct; net attribution interest rate of 9.94%, same increase of 2.14 pct. The company's net cash flow from operating activities during the period was 100 million yuan, which was 165 million yuan less than the previous year. The reason for the decrease in cash flow was due to the company's increase in sales repayment, collection and payment, and control of various costs and expenses; the payout ratio was 99.55%, an increase of 28.9 pct; the cash out ratio was 40.05%, an increase of 11.02 pct; as of the end of June, the company's accounts receivable and notes, accounts payable and notes, and the size of advance accounts and contract liabilities was 5.9/3.4/1.7/550 million, respectively, from the beginning of the year. 3.47%/39.81%/-20.42%/5.47%
Integrate AI technology to help transform the BIM platform, improve quality and efficiency, and create a second growth curve. The company continues to optimize the BIM forward design platform “Huayang Quick Construction” to achieve full professional BIM design capabilities and improve parameter-level control; the company and Wan Yi Technology Co., Ltd. reached a strategic cooperation to achieve data exchange and seamless connection between the CAPOL iBIM platform and the AI review platform, with the aim of improving review efficiency and accuracy. The application of AI in the field of architectural design will continue to focus on improving human efficiency in the short term. In the future, the two sides will deepen research on AI drawing review technology, explore its application in BIM model review, promote the transformation of BIM project services in the direction of intelligence, further improve human efficiency and design quality, and help the company improve quality and efficiency to create a second growth curve.
Investment advice: We predict that the company's net profit for 2023-2025 will be 179/220/269 million yuan, a year-on-year growth rate of 59.68%/22.58%/22.46%, and EPS of 0.91/1.12/1.37 yuan/share respectively. The latest closing price corresponds to the 2023-2025 PE of 15.81/12.90/10.53 times, maintaining the “increase in holdings” rating.
Risk warning: Macroeconomic downturn risks, technological progress falls short of expectations, and the market competition pattern worsens.