Event: the company's 2023H1 realized revenue of 192.12 billion yuan, an increase of 21.37%, a net profit of 2.658 billion yuan, a decrease of 5.34%, and a non-return net profit of 2.348 billion yuan, an increase of 32.97% (mainly due to the investment income generated by 2022H1's disposal of high-speed equity in its subsidiary, the disposal income of 2023H1 non-current assets decreased by 94.89%). The comments are as follows:
Deduction non-performance increased and accelerated, new energy business accelerated to take the lead. From a quarterly point of view, the company's 2023Q1 and Q2 single-quarter revenue is + 24.19% and + 19.07% respectively compared with the same period last year; the return net profit is + 17.83% and-17.39% respectively compared with the same period last year; and the non-return net profit is + 22.12% and + 44.93% respectively. In terms of business, 2023H1's survey, design and consulting, engineering construction, industrial manufacturing, investment and operation, and other businesses realized revenue of 63.70 yuan, 1603.29 yuan, 154.68 yuan, 147.95 yuan and 3.928 billion yuan respectively, up 4.97%, 22.94%, 28.20%, 26.02% and 15.51%, respectively. Among them, the new energy business realized revenue and gross profit of 575.80 yuan and 3.684 billion yuan respectively, an increase of 56.82% and 54.48% respectively, accounting for 6.23 and 2.79 pct respectively. From a regional point of view, revenue at home and abroad reached 1666.32 and 25.488 billion yuan respectively, an increase of 22.21% and 16.20% respectively.
The gross profit margin increased, the impairment loss increased, the investment income decreased and the net interest rate dragged down, and the cash flow improved slightly. In terms of gross profit margin, the company's 2023H1 gross profit margin increased by 0.83 pct to 10.93%, including survey and design and consulting business, engineering construction business, industrial manufacturing, investment and operation business gross profit margin of + 6.31,0.09,1.26,3.27 pct, respectively. During the period, the expense rate decreased by 0.04 pct to 7.28%, of which the sales expense rate decreased by 0.03 pct to 0.44% (mainly due to the company's increased market development, signing and expansion of business scale), the management expense rate increased by 0.08 pct to 5.71%, and the financial expense rate decreased by 0.09 pct to 1.14%. In addition, 2023H1's asset impairment + credit impairment loss was 675 million yuan, up 215.89% from the same period last year (mainly due to 2023H1 bad debt loss and contract asset impairment loss increased by 3.95 yuan and 275 million yuan respectively); net investment income-78 million yuan, year-on-year 2022H1 net income decreased by 108.02% (mainly due to investment income generated by 2022H1's disposal of high-speed equity in its subsidiary). Taken together, the net interest rate also fell 0.21 pct to 2.36 per cent. The net outflow of operating cash flow was 13.632 billion yuan, which was 1.17% lower than that of 2022H1. Among them, the cash-to-cash ratio increased by 2.46 pct to 85.38%, and the cash-to-cash ratio increased by 1.32 pct to 91.84%. In addition, the company's weighted average ROE fell 0.42 pct to 2.63%.
The expansion of markets at home and abroad has been accelerated, and the fixed increase has been carried out smoothly. 2023H1, the company signed a new contract of 645.929 billion yuan, an increase of 21.24%. Of this total, 4863.51 yuan and 159.578 billion yuan were newly signed at home and abroad, respectively, an increase of 24.91% and 11.28% respectively. Among the new signatures in the territory, southwest, northwest, east and central China increased by 165.6%, 78.6%, 37.8% and 15.2% respectively, while traditional energy, comprehensive transportation and housing construction increased by 91.2%, 77.2% and 153.0%, respectively. Among the new overseas signatures, Asia and Europe increased by 42.9% and 17.6% respectively, the markets along the "Belt and Road Initiative" route increased by 39.1%, and overseas new energy and comprehensive smart energy business increased by 100.7%. The company plans to issue A shares in a non-public offering not exceeding 20% of the total share capital before the issue, and the total amount of funds raised shall not exceed 14.85 billion yuan for new energy, energy storage and other projects. In March, the company obtained the approval of the State Council's State-owned assets Supervision and Administration Commission, and is now proceeding smoothly and orderly.
Profit forecast and rating. The company has obvious advantages in the integration of investment and construction in the fields of energy, power and infrastructure, with accelerated expansion of markets at home and abroad, and additional items smoothly promote the positive development of new energy and energy storage.
We estimate that the company's EPS in 23-24 will be 0.21 yuan and 0.25 yuan respectively, with a price-to-earnings ratio of 13-15 times earnings in 2023 and a reasonable value range of 2.75-3.17 yuan, maintaining a "better than the market" rating.
Risk hint. Investment downside risks, new energy and other policy risks, raw material price risk.