Performance performance
[Overall performance]
(1) 24H1 revenue 0.784 billion (-14.00%), net profit attributable to mother -0.024 billion (+71.99%), net profit not attributable to mother -0.074 billion (+50.98%).
(2) 24Q2 revenue 0.49 billion (-13.44%), net profit attributable to mother 0.029 billion (+1453.72%), net profit not attributable to mother 0.004 billion (+114.01%).
[View by business]
24H1 smart procurement revenue is 0.358 billion (-5.30%), of which 0.171 billion yuan (+8.60%) of procurement and operation revenue, 0.293 billion yuan (-26.06%) of smart government revenue, and 0.129 billion yuan (-5.07%) of digital construction revenue.
[Gross profit margin, cash flow]
24H1 gross profit margin was 61.37%, up 7.82pct from the same period last year; 24H1 net operating cash flow -0.23 billion, 24Q2 net operating cash flow 0.059 billion.
[Fee rate]
24H1 sales/management/R&D expense ratio 32.10%/10.42%/29.51%, sales expense ratio decreased by 9.21pct year on year, management cost ratio increased 0.43pct year on year, and R&D cost ratio increased 1.56 pct year on year.
24Q2 sales/management/R&D expense ratio was 21.57%/8.28%/24.02%, sales expense ratio decreased by 11.91 pct year on year, management cost ratio increased by 0.01 pct year on year, and R&D cost ratio increased by 0.85 pct year on year.
Note: The year-on-year growth rates are shown in parentheses
Performance reviews
Operating revenue continues to grow, and the recruitment business sector is expected to rise
The company's 24H1 smart procurement revenue was 0.358 billion yuan, a year-on-year decrease of 5.3%, of which revenue from recruitment operations was 0.171 billion yuan, an increase of 8.60% over the previous year.
Accompany the company actively promotes the construction and operation of SaaS and market-based trading platforms on the bidder side. The company's own SaaS platform, “Xindian Electronic Trading Platform”, added 65 new sections in the first half of the year, and the number of zones increased by 54.76% year-on-year.
On the bidder side, we develop more efficient, more experienced, and more valuable tools and services for bidders and other subjects. Continue to expand the interface with recruitment platforms, broaden the service layout, and launch a new era of value-added services based on innovation with the “logo” service. Based on the standard bridge system and digging deeper into service potential, we believe that based on the various types of bidder services the company continues to develop, the scale of the company's procurement and operation business is expected to continue to grow. At the same time, based on the “Guiding Opinions on Regulating the Procurement Management Work of Central Enterprises” jointly issued by the State Assets Administration Commission and the Development and Reform Commission on July 18, 2024, the overall scale of the procurement business sector is expected to increase.
Operating cash flow continues to improve, and cost control is reasonable and effective
The company's 24H1 and 24Q2 sales expense ratios were significantly reduced year over year. The total number of employees at the end of 2022 was 7,601, and the total number of employees in 2023 was 6712. At the same time, operating cash flow continued to improve. Along with the continuous control of company expenses, the profit level is expected to increase throughout the year.
Profit forecasting and valuation
We forecast that the company will achieve revenue of 2.24/2.56/2.99 billion yuan in 2024-2026, with year-on-year growth rates of -8.13%/14.28%/16.49%, respectively, and corresponding net profit of 0.235/0.284/0.341 billion yuan, with year-on-year growth rates of 20.74%/20.61%/20.40%, corresponding EPS of 0.71/0.86/1.03 yuan, corresponding PE of 28.92/23.98/19.92 times.
Risk warning
Competition for smart recruitment intensified, and policy progress fell short of expectations.