Event: the company issues a semi-annual report. The company's 23H1 realized operating income of 804 million yuan, an increase of 36.52% over 589 million yuan in the same period last year, and its net profit was 126 million yuan, an increase of 58.98% over 80 million yuan in the same period last year.

The port clearance has been fully restored, the company's smart port performance has grown rapidly, and the superimposed Hainan business has actively promoted and consolidated its leading position. On August 10, the Ministry of Culture and Tourism announced the third batch of outbound group tours, which has increased to 138 countries and regions. With the full opening of the port, the sharp rebound of the flow of people and goods, and the in-depth construction of the smart port, the project acceptance and income recognition of the smart port have been gradually resumed. at the same time, the company closely tracks the progress of the customs closure operation of Hainan Free Trade Port. the construction project is under active promotion. In the first half of the year, the company successfully won the bid Hekou Port Informatization Project, Ruili Port Intelligence Transformation and upgrading Project (Phase I), Longzhou County Shuikou Port Informatization and Inspection equipment Purchasing Project, Haikou Nangang General Railway passenger Inspection facilities Project, Wuliji Port Wisdom Port (Phase I) Construction Project, Hangzhou Xiaoshan International Airport Phase III project new terminal and land-side traffic center project joint inspection unit special system supplement project and so on.

The company is deeply engaged in the application of "AI+ industry" and continues to promote the application of AI innovative technology. The company continues to increase investment in Al technology, launched the "volcano" project based on AIGC technology, and ChatGPT-like applications incubated by multi-modal large model technology have been verified in border inspection and customs scenes. At the same time, the company has developed a new generation of products based on AI biometric recognition technology, which has been applied in a variety of scenarios at home and abroad. In addition, the company has newly created and promoted a variety of "AI+" integrated smart port 2.0 innovation models to promote the upgrading of port information and intelligence, and consolidate the company's leading position in the field of smart ports.

We will actively expand overseas markets and gradually improve the marketing system. 23H1 continues to promote the delivery of overseas projects, and the delivery of Saudi NEOM, United Arab Emirates ports and Cambodian airport projects is nearing completion. At the same time, in the first half of 2023, the company has started to establish a global channel sales model of products, through channel cooperation and other ways to further improve the company's overseas marketing network. On May 18, the State Investment Agency under the President of Kyrgyzstan, Kirghizi Post Co., Ltd., and Shengshi Technology signed a tripartite cooperation agreement to jointly promote the cooperation and development of Kyrgyz Postal Co., Ltd. Investment projects, postal outlets and international and domestic logistics digitization. In terms of intelligent transportation, based on the deep cooperation with Huawei, the two sides launched a joint solution of intelligent video and intelligent signal control, as well as a lightweight traffic control platform. The ITS project mainly covers Africa, Asia and other regions.

Investment suggestion: the company is expected to achieve revenue of 23.94 / 29.07 / 3.548 billion yuan and net profit of 4.31 / 5.20 / 639 million yuan in 23-25 years, corresponding to PE of 18.9 / 15.7 / 12.7X, maintaining the "overweight" rating.

Risk tips: product research and development is not as expected, profitability decline risk, accounts receivable impairment risk.