\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Event: on January 26, the company released the annual performance forecast for 2021, realizing an operating revenue of 5468.5 million yuan, a year-on-year increase of 31.06%; The net profit attributable to the parent company was 1469.46 million yuan, a year-on-year increase of 11.18%; The net profit attributable to the parent company after deducting non recurring profits and losses was about 948.44 million yuan, a year-on-year increase of 29.29%, exceeding market expectations.
The revenue and performance in 2021 exceeded expectations, which strongly supported the company’s long-term high-quality growth ability. 1) In terms of revenue, the company expects to achieve an operating revenue of 5.469 billion yuan, a year-on-year increase of 31.06%, exceeding market expectations, mainly due to the impact of financial policy innovation. In terms of profit, the company expects to realize a net profit attributable to the parent company of 1.469 billion yuan, a year-on-year increase of 11.18%; Deducting non net profit of 948 million yuan, with a year-on-year increase of 29.29%. According to the announcement, the main reason for the increase of net profit attributable to the parent company and net profit after deducting non recurring profits and losses in the reporting period is that the company has no large asset impairment loss in the reporting period compared with the previous year. In terms of expenses, during the reporting period, in order to meet the digital upgrading and transformation needs of the financial industry, the company increased the current strategic investment, resulting in a relatively faster growth rate of personnel costs than that of main business income. 2) Benefiting from regulatory innovation, digital transformation needs of financial institutions and new technology iteration, the company, as the top enabler of the capital market, has the ability to continue high-quality growth.
The strategic product o45 was launched in the first fund to meet the new era of investment research integration. 1) In recent years, China’s asset management industry has witnessed great development. By the end of June 2021, the scale of existing asset management products of Chinese financial institutions had totaled 92.6 trillion yuan, of which public funds accounted for 27%, ranking second. The launch of the new regulations on asset management in 2018 has promoted the return of the asset management industry to its origin, and also brought space for fund companies to fully demonstrate their investment and research ability in the same stage competition with banks and securities companies. 2) At the same time, the launch of the science and innovation board, the pilot landing of investment advisers, the popularity of ETFs, the rise of global investment and ESG investment are constantly expanding the trading market and trading varieties, giving public funds a greater stage to play. This has brought great challenges to the fund company’s system, and the demand for the construction of underlying it system has soared. 3) in December 20, 2021, the official account of the company reported that the Hang Seng new generation asset management system O45 was formally launched on the Warburg foundation, supporting all products and businesses, covering various types of domestic and foreign transactions, and connecting the domestic and international real-time wind control system, which integrates the instructions, transactions, wind control and liquidation of assets inside and outside the country. At the same time, o45 also introduced the experience of finastra, the world’s leading financial technology company, in investment decision-making business, to help investment research management realize the leap from how to buy to what to buy and then to auto buy faster.
The leading position of financial it in the whole line has benefited the core of the capital market reform and innovation environment. China’s capital market has entered a stage of comprehensive and steady development. For example, the restrictions on the business scope of foreign banks, securities companies, fund management companies and other financial institutions in China (such as Goldman Sachs, Morgan Stanley and Credit Suisse have successively won the control of joint venture securities companies), the smooth implementation of the science and innovation board, the launch of the gem registration system, the continuous implementation of new regulations on asset management, the establishment of bank financial management subsidiaries, and the pilot of public offering investment consulting business, In particular, the Beijing stock exchange was announced to be established. The company has the first market share in many subdivided industries, and the introduction of capital market innovation policy is expected to form a comprehensive and continuous pull on all business lines.
Maintain the “buy” rating. According to the key assumptions, it is estimated that the operating revenue from 2021 to 2023 will be 5.469 billion yuan, 6.774 billion yuan and 8.176 billion yuan respectively (the previous forecast is 5.55 billion yuan, 6.632 billion yuan and 7.839 billion yuan), and the net profit attributable to the parent company will be 1.470 billion yuan, 1.820 billion yuan and 2.222 billion yuan respectively (the previous forecast is 1.842 billion yuan, 2.377 billion yuan and 2.926 billion yuan). Maintain the “buy” rating.
Risk warning: the benefit of the policy is less than expected; The progress of financial cloud is less than expected; The capital market scene is less generous than expected
