This report is read as follows:

The company accelerates the transformation of scientific and technological achievements, the performance of H1 investment income is outstanding, industry-university-research deep integration + many projects in hand science, optimistic about the future development.

Main points of investment:

Maintain and increase holdings. H1 revenue 1.25 billion yuan /-0.17%, return to the mother net profit of 223 million yuan / + 95%, deducting non-89 million yuan / + 60% is in line with expectations. Maintain the forecast for 2023-25, the EPS is 0.44, 0.54, and 0.65 yuan, the growth rate is 29, 22, 21%, the target price is 10.89, and the holding is maintained.

Q2 net profit continued to increase, net interest rate increased. 1) the revenue growth rate of Q1gam2 is 19.7%, 14.3% respectively, and the net profit growth rate of home return is 44% 117%, deducting the non-growth rate 72%, respectively. 2) H1 gross profit margin 23.5%/-2.1pct, mainly due to the reduction of science and technology services gross profit margin (31.1%/-10.3pct); net profit rate 21.2%/+12.1pct, deducting non-net interest rate 7.91%/+2.94pct 3) H1 expense rate 29.1%+3.43pct, including sales expense rate 4.73%/+0.51pct, management expense rate 11.81%/-0.06pct, R & D expense rate 6.1%/+0.78pct, financial expense rate 6.46% minus 57 million yuan / + 74%) net operating cash flow.

Accelerate the transformation of scientific and technological achievements. 1) H1 science and technology innovation service revenue of 286 million yuan /-13.3% accounted for 25.5%, strategic emerging industries 816 million yuan / + 4.72% accounted for 72.5%, of which digital industry revenue + 202% 2) promoting base construction in an orderly manner, centering on the layout of "one city, one industry", as of the end of H1, there were 38 scientific and technological innovation bases in the core areas rich in scientific and technological innovation resources. among them, there are a total of 11 state-level incubators and mass innovation space; 3) the front end of investment incubation layout, further focusing on the transformation of scientific and technological achievements, H1 income reached a record high of 306 million yuan.

Positive progress has been made in strategic emerging industries. 1) Lixing Technology actively promotes the domestic market, accelerates upgrading and transformation, and provides overall packaging solutions for high-quality national brands such as Juzi Bio / Huaxi Biology / Puerjia; 2) Digital Cloud International H1 has won the bid / signed a number of major projects. The quality inspection of urban-level building digital models has developed rapidly, and 6 of the 11 administrative / functional areas in Shenzhen have covered services.

Risk tips: the progress and effect of the project is not as expected, the failure of investment incubation and the risk of project exit, etc.