\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Investment Event: on January 26, the company released the performance forecast for 2021. In 2021, the company expects to achieve a revenue of about 5.469 billion yuan, a year-on-year increase of 31.06%; The net profit attributable to the parent company was about 1.469 billion yuan, a year-on-year increase of 11.18%; The net profit deducted from non parent company was about 948 million yuan, with a year-on-year increase of 29.29%.
Revenue growth exceeded expectations and continued to benefit from the financial digital transformation. In 2021, the company is expected to achieve a revenue of 5.469 billion yuan, which is higher than expected, mainly due to the impact of financial innovation policies. Driven by policy certainty, the digitization of the financial industry and the transformation and upgrading of financial information innovation continue to accelerate. The company continues to benefit from its strong R & D, implementation and delivery capabilities, constantly consolidate its leading position in the industry and expand its revenue. During the reporting period, the company realized a net profit attributable to the parent company of 1.469 billion yuan, which was mainly due to the company’s increasing strategic investment in the current period, resulting in a faster growth of personnel costs than the main business income. Considering that the current amortization amount of the company’s employee stock ownership plan in the reporting period is about 183 million yuan, the net profit attributable to the parent company will meet the market expectation after adding back.
Key products continue to achieve important breakthroughs: since 21q4, the company’s flagship products have continued to achieve breakthroughs in the landing of customers. In November 2021, Huafu securities launched the Hang Seng express trading system to enhance the reliability of its institutional business services; At the end of December, Huabao fund officially launched Hang Seng o45 system, realizing the first launch of o45 in the fund industry, and Ping An Securities launched an online valuation of 6.0, both of which have been running smoothly so far; In terms of financial innovation, in December 2021, the “Ta + lightdb database” innovation project assisted by the company Soochow Securities Co.Ltd(601555) was successfully put into operation, realizing the adaptation of the core application system to the underlying domestic basic software and hardware, and creating a benchmark for industry innovation. The continuous breakthrough of fist products in key customers continues to highlight the company’s industry-leading product strength.
The strategic layout of “bringing in” continues to increase, and financial digital intelligence continues to develop: on November 27, 2021, the company announced that it plans to acquire summit business and products of finastra for us $65 million. In combination with the company’s previous acquisition of optics from finastra and the integration of fusioninvest, we believe that this acquisition is another important layout of the “Introduction” strategy, which will further improve the capital business line, and strive to create localized investment and research digital intelligence products, constantly develop the field of financial digital intelligence and provide more efficient solutions for financial institutions, Help financial institutions further reduce costs and increase efficiency, and efficiently serve more customers with the power of intelligent investment and research.
Investment suggestion: we have raised the company’s revenue and profit forecast results as a whole. It is estimated that the company’s total revenue from 2021 to 2023 will be 5.469/65.63/76.78 billion yuan respectively (the former value is 5.216/62.60/73.24 billion yuan), the net profit attributable to the parent company will be 1.468/18.81/2332 billion yuan respectively (the former value is 14.85/18.42/2274 billion yuan), and EPS will be 1.00/1.29/1.60 yuan respectively (the former value is 1.02/1.26/1.56 yuan), The corresponding PE is 59 / 46 / 37 times respectively, maintaining the “buy” rating.
Risk warning: the tightening of supervision orientation will have an adverse impact on the company’s business; The intensification of industry competition leads to the weakening of profitability; The implementation of product development and business promotion are not as expected.
