\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Event:
On January 26, the company released the performance forecast of the annual report. In terms of revenue, the company’s annual revenue reached 5.47 billion yuan, a year-on-year increase of 31.1%; In the fourth quarter alone, the revenue reached 2.35 billion yuan, a year-on-year increase of 28.0%.
In terms of profit, the company’s annual net profit attributable to the parent company was about 1.47 billion yuan, a year-on-year increase of 11.2%; The net profit deducted from non parent company was about 950 million yuan, with a year-on-year increase of 29.3%; In the fourth quarter alone, the net profit attributable to the parent company was about 790 million yuan, a year-on-year decrease of 12.4%, deducting the net profit not attributable to the parent company of 670 million yuan, a year-on-year increase of 42.0%.
Comments:
1. The company launched two benchmarking cases of core systems in 21 years and released a number of heavy products. It is expected to open the prelude to large-scale promotion in 22 years. The company’s brokerage core system UF 3.0 completed the launch of China Merchants Securities Co.Ltd(600999) and signed a contract with Hengtai securities; The new generation of asset management core system o45 was launched by Huatai, Guohai and other securities companies, and launched public funds for the first time at the end of December; Valuation 6.0 also launched more than 10 customers. In addition, the company also released new products such as integrated institutional trading platform I2, low delay distributed middleware light LDP, financial distributed database lightdb, data capability complex HDP, and created a model of information innovation based on some new products.
2. The main line of capital market reform continues to be deduced. In the seven key tasks in 2022, the CSRC proposed to take the full implementation of the stock issuance registration system as the main line, deeply promote the reform of the capital market, and unswervingly promote the institutional opening-up. In addition, a series of capital market reform events such as market making on the science and innovation board, income swap, account management optimization and fund investment advisory pilot are also expected to be implemented in 2022.
3. The company’s profits are expected to be released in 2022. Affected by the increased strategic investment in 2021, the growth rate of the company’s personnel costs is faster than that of its main business income; With the gradual maturity of the system, the investment in the later stage is expected to narrow. At the same time, it is noted that the company has recruited more than 600 fresh students in the spring of 22 years, compared with more than 700 in the same period last year, which can also reflect the expectation of personnel growth slowdown.
Based on the 21-year performance forecast, the assumption of the above profit release, and considering the impact of share based payment expenses, we increase the profit forecast to increase the revenue from 2021 to 2023 from RMB 5.417/68.65/8.622 billion to RMB 5.469/69.12/8.682 billion; The net profit increased from RMB 1.431/17.78/2.204 billion to RMB 1.469/18.00/2.361 billion, corresponding to 59.1/48.2/36.8 times PE, maintaining the “buy” rating.
Risk tips: 1) macro and policy risks; 2) Competitive risk; 3) Risk of new product promotion and company delivery falling short of expectations; 4) The performance forecast is only the preliminary accounting data, and the specific data shall be subject to the annual report officially disclosed by the company
