\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Event: on January 26, 2022, Hundsun Technologies Inc(600570) announced the performance forecast of 2021. In the whole year, the company is expected to realize 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%; Deduct non net profit of RMB 948.44 million, with a year-on-year increase of 29.29%.
Comments:
Benefiting from the financial innovation policy, the revenue growth rate was higher than expected. In the whole year, the company is expected to achieve an operating revenue of 5468.5 million yuan, with a year-on-year increase of 31.06%. The revenue growth is mainly due to the impact of financial innovation policies, and the base number affected by the epidemic last year is low. In order to meet the needs of digital upgrading and transformation of the financial industry, the company increased strategic investment in the current period, resulting in a faster growth rate of personnel costs than that of main business income. The net profit attributable to the parent company is expected to be 1469.46 million yuan, a year-on-year increase of 11.18%. In addition, the company had no large asset impairment loss in 2021, while the asset impairment loss of the previous year was 239 million yuan. It is estimated that the impact of non recurring profits and losses on the company’s net profit in 2021 is about 52.102 million yuan, deducting 948.44 million yuan of non net profit, a year-on-year increase of 29.29%.
Multiple factors promote the sustained prosperity of the industry. In recent years, the prosperity of the company’s downstream securities companies, public funds, private funds and other industries has been high, the expenditure on it in various industries has gradually increased, and the reform of China’s capital market has been continuously strengthened. For example, the reform of registration system, the establishment of Beijing stock exchange, “Shenzhen Hong Kong stock connect”, “Shanghai Hong Kong stock connect”, “fund investment adviser”, “public REITs” and other industries will objectively increase the IT expenditure in relevant industries, The proportion of it expenditure in revenue in China’s capital market is several times lower than that in developed countries, and the development potential is huge. On the other hand, based on new technologies such as cloud computing, big data and artificial intelligence, the company launched a new generation of distributed products o45 and UF3 0 and others have begun to implement benchmarking projects, and new products adopt new architectures such as cloud native and micro services. With the demonstration effect of benchmarking projects, it is expected to accelerate the product iteration of other customers.
Accelerate the launch of new products and improve the layout of fund management product line. In December 2021, Hang Seng’s new generation asset management system o45 was first launched in the fund industry to undertake the integration of main processes and terminals of Huabao fund. In addition, Yunying network, a subsidiary of Hang Seng holdings, acquired the product exclusive right and exclusive license development right of summit, a bank fund management system under finastra, in China, Hong Kong and Macao. Summit covers the main trading scenarios of capital business of financial institutions, including money market, capital market, foreign exchange trading and derivatives market, and provides services for large and medium-sized banks. The company is expected to further improve the product line layout of capital management system.
Investment suggestion: we estimate that the company’s operating revenue from 2021 to 2023 will be 5.469 billion yuan, 6.642 billion yuan and 8.024 billion yuan respectively, the net profit attributable to the parent company will be 1.469 billion yuan, 1.893 billion yuan and 2.293 billion yuan respectively, and the EPS will be 1.01, 1.30 and 1.57 yuan respectively. Maintain the “buy” rating.
Risk warning: the reform of capital market is less than expected; The promotion of new products was less than expected.
