The company released the mid-2023 report that revenue in the first half of the year YoY + 21%, home net profit YoY + 34%, order growth is relatively stable, intelligent geological security system, intelligent mining and other new products, good control of three fees, gross profit margin and cash flow have improved.
Event: the company released its mid-2023 report, with first-half revenue of 139 million yuan, YoY + 20.82%; net profit of 38 million yuan, YoY + 33.53%; deduction of non-return net profit of 37 million yuan, YoY + 30.53%.
Q2 revenue of 86 million yuan, YoY + 18.46%; net profit of 25 million yuan, YoY + 30.34%; net profit of 25 million yuan, YoY + 25.27%.
The growth of orders was steady, and the revenue of new products was increased. New orders in the first half of the year were 258 million yuan, compared with 231 million yuan in the same period last year, with YoY + 11.7%. From the quarterly distribution point of view, compared with the previous quarter, the growth rate of newly signed 23Q2 projects has recovered. The business of the main product line, intelligent integrated management and control platform has maintained steady growth; the intelligent geological guarantee platform has started to expand since last year, and the income in the first half of this year reached 29.68 million yuan, accounting for more than 20%. The total income and proportion of intelligent mining and ventilation business have achieved rapid growth.
Good cost control, improved gross profit margin and cash flow. In the first half of the year, sales expenses YoY + 4.36%, management expenses YoY + 17.96%, and R & D expenses YoY + 13.15%. YoY + 8.39% for R & D personnel and 10.27% for total employees. The comprehensive gross profit margin is 57.69%, an increase of 3.17pct over the same period last year, which is the highest reported in the past three years. We believe that it is mainly due to the decrease in the proportion of local total package business in the income structure and the increase in the proportion of intelligent geological security, intelligent mining and cloud GIS with relatively high gross profit margin. The intelligent coal mine project of 50.187 million yuan in Shendong mining area won by the company in January this year is a pure software project. In the first half of the year, the company received 46.89% of the cash received from the sale of goods and services, and the operating net cash flow YoY+36.83%, cash flow continued to improve.
Maintain the "highly recommended" investment rating. It is estimated that the company's revenue from 2023-2025 will be RMB 644, 838 million for YoY+, 35% for 31%, and 210 million for YoY+, and the current share price of YoY+42%/37%/34%, will correspond to 28max, 21max, 15x. We are optimistic about the optimization of the business model brought about by the intelligent mining face and cloud GIS products under the general trend of intelligent coal mine, and continue to strongly recommend it.
Risk hint: the profitability of coal enterprises can decline; the landing of intelligent mining policy is not as expected; and the competition in intelligent coal mining industry is intensified.