23H1 operating income / homing net profit year-on-year-1.3% Universe 13.8%, maintaining "Buy" rating
The company's 23H1 realized revenue of 1.01 billion yuan, year-on-year-1.27%, and net profit of 82 million yuan, + 13.8% compared with the same period last year, in line with our expectations. 23Q2 realized revenue / return net profit of RMB 583 million, compared with 10.9% of the same period last year. We maintain the company's 23-25 return net profit forecast of 2.36 yuan 3.19 / 415 million, which is comparable to the company's 23-year Wind consensus forecast 0.9xPEG. The company's industry prosperity is higher than comparable, 23-25 return net profit CAGR is about 35%, approved to give the company 23-year 1.1xPEG, the target price is 17.72 yuan (the previous value is 15.26 yuan), maintain the "buy" rating.
The development of mechanical and electrical engineering has been smooth, and the gross profit margin of each business has been improved in an all-round way.
From a business point of view, the company's design consulting / mechanical and electrical engineering / equipment manufacturing / project contracting revenue 2.2max 2.8 / 37 million, year-on-year-1.1% picks 32.8% mae 24.5% mae 42.2%, gross profit 44.7% picks 13.7% picks 20.2% 9.1%, year-on-year + 2.3/+4.3/+4.0/+7.4pct, the proportion of project contracting is further reduced, and the expansion of mechanical and electrical projects is smooth. The gross profit margin of all businesses has increased in an all-round way. 23H1's overall gross profit margin is 23.0%, year-on-year + 3.2pct, 23Q2 gross margin 22.7%, year-on-year + 2.8pct, month-on-month-0.9pct.
During this period, expenses were optimized, R & D and impairment expenses increased significantly, and the home net interest rate increased the overall annual expense rate of 23H1 year-on-year-0.4pct to 12.4%, of which the sales / management / R & D / financial expense rate was-0.11/-0.94/+0.79/-0.15pct year-on-year, and increased R & D innovation expenditure + 16.4% year-on-year.
The impairment expense accounts for the revenue ratio from + 3.84pct to 1.78%. Under the comprehensive influence, the net interest rate is 8.1%, and the year-on-year + 1.1pct. The expense rate during the 23Q2 period is from-0.07pct to 11.2%, the mother net interest rate is 8.3%, year-on-year + 1.46pct, month-on-month + 0.42pct. The net cash outflow of 23H1 operating activities was 195 million, which was 74 million more than the same period last year, mainly due to the increase in the occupation of operating funds in the current period, with a cash-to-cash ratio of 104.8%, 99.3%, year-on-year-14.9/-41.2pct.
Food security + cold chain enhanced two-wheel drive, high medium-and long-term performance can be expected food security-driven, granary construction ushered in a peak, grain and oil processing intensification continues to improve, at the same time, cold chain logistics demand is improving, it is expected that the "14th five-year Plan" will maintain rapid growth. In June 2023, the National Construction Plan of Modern Facility Agriculture (2023-2030) was issued, requiring the completion of a total of 60, 000 storage and fresh-keeping facilities by 2030, as well as the continuous transformation and upgrading of a number of old grain drying centers (sites). As a pioneer in the field of grain and oil engineering and backed by Cofco, the company has a strong competitive advantage among customers of downstream state-owned enterprises. 3.94 billion of new orders were signed in 22 years, + 39.6% compared with the same period last year. We believe that during the 14th five-year Plan period, we are expected to continue to benefit from better prosperity in the field of grain, oil and cold chain logistics, superimposed design consulting to mechanical and electrical engineering conversion rate continues to increase, and high performance growth can be expected.
Risk hint: the investment in grain and oil field is not as expected; the conversion rate from design to mechanical and electrical engineering is not as expected.