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The company released semi-annual report: 2023H1 achieved operating income of 124 million yuan, down 11.92% from the same period last year; net profit from home was-7.1129 million yuan, down 194.34% from the same period last year; and net profit from non-return was-9.497 million yuan, down 7233.40% from the same period last year. In the single quarter of 2023Q2, the company achieved operating income of 68 million yuan, down 39.69% from the same period last year; net profit from home was-5.3601 million yuan, down 137.06% from the same period last year; and net profit from non-return was-6.7641 million yuan, down 185.50% from the same period last year.
Comments:
Expand the regional territory, short-term performance under pressure. At the revenue end, 2023H1 achieved operating income of 124 million yuan, down 11.92% from the same period last year. The main reasons are: 1) due to the continuous influence of changes in the macro environment and tight government budget, the progress of the company's stock project is lower than expected; 2) the undertaking time of the new project is mainly concentrated in the second quarter, and the progress of project implementation is limited. On the profit side, 2023H1 achieved a net profit of-7.1129 million yuan, down 194.34% from the same period last year, mainly due to the expansion of the company's new regional projects and the low gross profit margin of newly signed projects. On the expense side, 2023H1 company sales expense rate / management expense rate / R & D expense rate / financial expense rate year-on-year + 1.48pct/+0.86pct/+0.90pct/+2.15pct, financial expense rate increased compared with the same period last year, mainly due to the expansion of bank financing scale and the increase of financial expenses compared with last year.
Rely on the traditional advantages of the provincial market, break through the key markets outside the province. Provincial market: the company has undertaken the Xiangyang inner ring speed-up transformation project, Danjiangkou City comprehensive management network and government video network project, Hubei Provincial Public Security and Traffic Administration Information system operation and maintenance project, etc. Outside the provincial market: undertake Beijing, Jinan, Hohhot and other places of traffic, municipal, enterprise information projects and so on. The differentiated services and solutions provided by the company's subsidiary Anshi Ruitong Needle have landed in Inner Mongolia and Shandong. At the same time, the establishment of Zhejiang branch fills the gap in the market of economically developed provinces such as East and South China. In addition, the company also cooperates with business partners in Shaanxi, Shanxi and other regions to open up blank incremental markets and expand the scale of business.
Strive to promote new business and cultivate performance growth points. 1) the company became a member of SVAC Alliance and participated in the compilation of SVAC 3.0 national video security standard, which laid the foundation for later participation in the national secret reconstruction project based on GB35114 video security standard. 2) the company has undertaken the second phase of the construction project of the Enterprise Innovation points system of the Science and Technology Innovation Bureau of Donghu High-tech Zone, which has opened up a situation for the company to continue to develop its business in the field of digital government. 3) the "out-of-the-box" enterprise low-code platform "Digital Intelligence Cloud OS Integrated Application Management platform" developed by the company
It has made a breakthrough in the field of enterprise digital transformation, and signed a digital visualization service contract with Hubei Radio and Television. 4) the company's intelligent environmental protection business is advancing steadily, and the intelligent operation and management system of fish breeding stations independently developed by the company has been deployed in multiple breeding stations and breeding stations (industrial end).
Investment advice: in view of the fact that the project is not as good as expected, lower the profit forecast. We estimate that the operating income for 2023-2025 will be RMB 480 million, with a corresponding growth rate of 22.7%, 19.0%, 16.7% (the original forecast for 2023-24 is RMB 585,000,000); the net profit of homing mother will be RMB 0.38 million, and the corresponding growth rate will be 458.9%, 25.9%, 33.8%, respectively (the original forecast for 2023-24 is RMB 0.59 million). Maintain a "neutral" rating.
Risk hints: there is uncertainty in the release of demand, intensified competition in the industry, and uncertainty in the process of market expansion.