Event
The company released its 2022 semi-annual report: operating income in the first half of 2022 was 687 million yuan, up 25.52 percent from the same period last year; net profit from home was 32 million yuan, down 56.09 percent from the same period last year; net profit from non-return to home was 8 million yuan, down 87.92 percent from the same period last year; basic earnings per share was 0.24 yuan per share, down 67.57 percent from the same period last year. In the second quarter of 2022, the operating income reached 612 million yuan, an increase of 63.27% over the same period last year.
4.3 billion yuan, down 12.75% from the same period last year; net profit from non-return was 47 million yuan, an increase of 0.98% over the same period last year.
Guoyuan point of view:
The decline in product sales price led to a decline in gross profit margin, attaching importance to market development and R & D investment. 2022Q2's gross profit margin / net profit rate is 20.00% / 6.96% respectively, compared with 2021Q2-12.52/-6.06pcts and 2022Q1 + 7.52/+21.29pcts, respectively. The sales / management / R & D / financial expense rates of 2022Q2 were 2.95%, 2.36%, 5.39% and 0.02%, respectively, compared with the same period last year.
65/-0.37/-2.23/+0.08pcts, the increase in sales expenses is mainly due to the increase in the number of sales staff with the expansion of the company's business scale. The company actively invested in R & D, with 434 R & D personnel, an increase of 90.35% compared with the same period last year, accounting for 30.48% of the company's employees, and 5.37pctGrai 2022H1 increased 30 new patents over the same period last year, and is actively studying projects such as airport sorting, intelligent warehousing, agricultural product sorting, intelligent travel inspection, and so on.
Diversified products and domestic and foreign market development to enhance on-hand orders, the customer structure is more diversified as of June 2022, the total contract value of the company's on-hand orders is about 2.48 billion yuan, an increase of 129 million yuan over the end of 2021. From the perspective of market structure, the proportion of domestic and overseas orders-on-hand is 81.37% and 18.63% respectively. Branches have been set up in Singapore, the United States, Malaysia and other places. Overseas orders account for an increase of 1.93 pct compared with the end of 2021. From the perspective of business structure, the company actively promotes the layout of intelligent warehousing and airport baggage sorting business, with intelligent warehousing orders of about 96.67 million yuan and airport baggage sorting orders of 20.7 million yuan. The proportion of the contract amount of the top five customers in hand is 32.95%, 11.06%, 10.26%, 5.19% and 4.19%, respectively, compared with that at the end of 2021. The proportion of sales revenue from ZTO Express in the current main business income decreased from 64.86% in 2020 to 27.11% of 2022H1, and the customer concentration decreased gradually.
The market space of intelligent logistics equipment is vast, and the framework of key common technology platform to build core competitiveness. China's logistics industry is still in a state of low efficiency. Intelligent automatic sorting system has many advantages, such as high efficiency, low comprehensive cost, low error rate and so on. There is a broad space for market development. Based on the architecture of key common technology platform, the company has developed core components such as motor and drive system, bar code / QR code identification system, precision drum, etc., which is one of the few enterprises in the same industry that can provide integration from core software and hardware to system integration. In the future, it is expected to extend to other product layers and application layers by relying on technology accumulation.
Investment advice and profit Forecast
The company is the leader of the domestic logistics sorting system, technological leadership, diversified market development, abundant orders on hand to ensure the steady growth of the company's performance. We estimate that the company's revenue from 2022 to 2024 will be RMB 2.611 billion, net profit 1.47 million, net profit 1.96 million and EPS 1.12, respectively. The current share price corresponds to PE at a multiple of 37-28-21, maintaining a "buy" rating.
Risk hint
The market competition aggravates the risk, the research and development progress falls short of the expected risk, the core technical personnel loss risk, the raw material supply and the price fluctuation risk, the downstream customer relative concentration risk.
