Event: in 2023, H1 Company achieved operating income of 1.01 billion yuan, a decrease of 1.27% over the same period last year; net profit of 82 million yuan, an increase of 13.77% over the same period last year; and net profit of 74 million yuan, an increase of 10.33% over the same period last year. The comments are as follows:
Q2 income has slowed down from the previous month, and the growth rate of mechanical and electrical engineering business is faster. In the H1 quarter of 2023, the revenue of Q1 and Q2 increased by 10.68% and-8.52% respectively compared with the same period last year. The net profit of Q1 and Q2 increased by 18.10% and 10.94% respectively. In 2023, revenue from mechanical and electrical engineering, design consulting, project contracting and equipment manufacturing was 440 million yuan, 223 million yuan, 37 million yuan and 277 million yuan respectively, an increase of 32.84%,-1.13%,-42.22% and-24.49%, respectively.
The gross profit margin rose, the net profit margin rose, and the net operating cash outflow increased significantly. In terms of gross profit margin, the company's gross profit margin rose 3.21 percentage points year-on-year to 23.03%, including design consulting, mechanical and electrical engineering system delivery, project contracting, and equipment manufacturing business gross profit margin rose 2.25%, 4.28%, 7.35%, 3.98% respectively. In terms of the period expense rate, the overall period expense rate decreased by 0.41% to 12.37% compared with the same period last year, of which the sales expense rate was 1.04%, down 0.11% from the same period last year; the management expense rate (including R & D expenses) decreased by 0.15% year-on-year to 12.27%; the financial expense rate decreased by 0.15% to-0.94%. Assets + credit impairment totaled 18 million yuan, an increase of 39 million yuan and 186% over the same period last year. In terms of net interest rate, the company's 23-year H1 net interest rate increased by 0.87 percentage points to 8.20% compared with the same period last year. ROE rose 0.29 percent year-on-year to 4.31 percent. The net operating cash outflow was 195 million yuan, an increase of 73 million yuan over the same period last year, of which the cash-to-cash ratio decreased by 14.91% to 104.80%, and the cash-to-cash ratio decreased by 41.21% to 99.30%.
Strengthen the strategic positioning of "integrated technical service providers and high-end equipment manufacturers in the agricultural, food and cold chain logistics industry" to promote transformation and upgrading. The company will firmly implement the "1345" strategy and define a strategic positioning:
Strengthen the strategic orientation of "comprehensive technical service providers and high-end equipment manufacturers in the agricultural grain, food and cold chain logistics industry"; promote three transformations and upgrades: the enterprise mission is transformed to the function of ensuring the national agricultural food and cold chain safety and leading the technological progress of the industry; the management mode is transformed to the marketization of "headquarters + professional department + profit point", and the development model is transformed to the connotation and quality improvement driven by scientific and technological innovation. Adhere to the road of development of the four modernizations: adhere to the development road of "specialization of business operation, refinement of management and production, characteristics of products and services, and novelty of technological innovation"; promote the five core industries: to achieve the five core industries of rice, noodles, oil, warehousing and food cold chain to be stronger and better, enhance the market control and discourse power of the industry, and strive to become the benchmark for the reform of state-owned science and technology enterprises in the industry.
Profit forecast and rating. As a leader in the development of agricultural food and cold chain industry, the company has obvious advantages, the trend of newly signed orders is good, and its performance is expected to grow rapidly. We estimate that the company's EPS in 23-24 will be 0.41 yuan and 0.54 yuan respectively, with a price-to-earnings ratio of 35-40 times earnings in 2023 and a reasonable value range of 14.35-16.40 yuan, maintaining a "better than the market" rating.
Risk hint. Payback risk, policy risk, economic downturn risk.