\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
The performance forecast is in line with expectations, and the endogenous growth power is strong. Hundsun Technologies Inc(600570) announced on the evening of January 26 that it is expected to achieve a revenue of 5.469 billion yuan in the whole year of 21 years, with a year-on-year increase of 31%; The net profit attributable to the parent company was 1.469 billion yuan, a year-on-year increase of 11%; It is estimated that the net profit attributable to the parent company after deducting non-profit is 948 million yuan, with a year-on-year increase of 29%. The predicted revenue and profit of the company are generally in line with our previous expectations.
The revenue maintains high growth, which is enough to reflect the company’s management ability under pressure. The biggest highlight of the performance forecast lies in the strong endogenous growth momentum shown by Hang Seng. The company expects the growth rate of annual revenue and non profit deduction to be 31% and 29% respectively, of which the revenue recognized in Q4 is expected to be 2.348 billion yuan in a single quarter, a year-on-year increase of 28%. Considering the repeated epidemic situation in the fourth quarter and the increasing difficulty of project implementation and delivery, the company has overcome various difficulties and successfully completed project delivery, which is enough to prove the company’s efficient management ability.
Financial reform is accelerating, and digitalization is brewing a new round of it demand. From two dimensions, the catalytic power of financial it is strong: on the one hand, financial reform and financial innovation have been accelerating. In the 21st year, the Beijing stock exchange “came into being”, the central economic work conference proposed to implement the comprehensive registration system, and the innovation of individual stock options and other financial instruments has been introduced; On the other hand, in the context of increasingly homogeneous competition, digitization is becoming the next growth point of it expenditure of financial institutions. Building innovative products such as data middle stage and business middle stage downward and enabling investment research and marketing systems upward with digitization are becoming an important direction of it expenditure of institutions.
“Bringing in” and “going out” should be carried out simultaneously, and innovation should be used as the leader of financial it. Focusing on Hang Seng’s own development, in addition to enjoying the dividends of financial reform and financial innovation with its leading advantages, the company has maintained high R & D investment for many years and led the development of the whole securities it industry through innovation. Recently, the company’s strategic product o45 was officially launched into Huabao fund, which has become a benchmark case for the implementation of innovative achievements. With the stable operation of o45, the product architecture and technical leadership are expected to be gradually recognized by the market, and the potential demand for replacement and upgrading can be expected; O45 is the result of the company’s research and development of strategic products. At the same time, Hang Seng is also exploring the direction of digital transformation of financial institutions. In 21 years, the company launched a variety of products, such as HDP data console, light financial cloud, etc. In 21 years, the company acquired summit business, absorbed foreign leading fund management IT technology (including difficult mathematical models, etc.), and enabled large Chinese banks after localization. In the foreseeable future, China’s financial industry will continue to open wider to the outside world and integrate with the international financial market, which will become a clear direction of reform. With forward-looking innovation and reasonable mergers and acquisitions, Hang Seng is expected to continue to maintain its technological leadership and lead the digital transformation of the financial IT industry.
Investment suggestion: it is estimated that the company will achieve a revenue of 5.469/66.47/8005 billion yuan in 21-23 years and a net profit attributable to the parent company of 1.469/19.59/2489 billion yuan in 21-23 years. The current market value corresponds to 59 / 44 / 35 times of PE in 21-23 years. At present, under the unanimous expectation of wind, the PE of the securities it industry corresponds to 45 / 35 times in 21 / 22 years. As the leader in the industry market share, the company is expected to enjoy the valuation premium. Compared with its average PE (TTM) of the past three years, there is still room for the current valuation. Therefore, the “recommended” rating is maintained.
Risk warning: the progress of capital market reform is less than expected; The gross profit margin fell due to the intensification of industry competition; The progress of promoting new products was less than expected.
