\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Event:
The company issued the 2021 annual performance forecast after the closing on January 26, 2022.
Comments:
Thanks to the impact of financial innovation policies, the operating revenue is expected to increase by 31.06% year-on-year
In 2021, the company expects to achieve an operating revenue of 5.469 billion yuan, a year-on-year increase of 31.06%, mainly due to the impact of financial innovation policies. In recent years, China’s financial reform has been continuously promoted, and a series of policies have been continuously implemented, driving the rapid development of the financial IT industry. In September 2021, Beijing stock exchange Co., Ltd. was incorporated. It is the first corporate stock exchange in China approved by the State Council. The establishment of Beijing stock exchange is expected to bring opportunities such as the construction of exchange system and the upgrading and transformation of securities business system. The company has a solid advantageous position in the fields of securities companies’ core trading system and buyer’s investment management system, and UF3 The market promotion of new products such as 0, o45 and new generation TA is smooth, and it is expected to benefit from the opportunity of capital market reform.
Continue to increase strategic investment, and the net profit attributable to the parent company is expected to increase by 11.18% year-on-year
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%; It is estimated that the net profit deducted from non parent company is 948 million yuan, with a year-on-year increase of 29.29%. The main reasons are as follows: 1) in order to meet the needs of digital upgrading and transformation of the financial industry, the company has increased the current strategic investment, resulting in a faster growth rate of personnel costs than that of main business income. In terms of cost input, in the first three quarters, the year-on-year growth rates of the company’s R & D expenses / sales expenses / management expenses were 37.66% / 18.81% / 31.66% respectively; 2) Compared with 2020, the company had no large asset impairment loss in 2021, which had a certain impact on the net profit.
O45 opens a new era of fund asset management, M & a summit cuts into the core system of bank fund management
The company has a comprehensive product line, covering the whole financial industry chain, and has an advantage in the IT field of capital market. In December 2021, o45 was successfully launched in Huabao fund and switched smoothly. This launch is the first launch of o45 in the fund industry, which means that a new era of asset management technology in the fund industry has officially opened. O45 meets the needs of the business development of Huabao fund, solves the limitations of the original system, and undertakes the integration of main processes and terminals in the three-year digital transformation plan of Huabao fund. In November 2021, the company acquired summit fund management system through its holding subsidiary Yunying network. In addition to purchasing the permanent use right of summit source code and other intellectual property rights, the company also undertook 17 large and medium-sized bank customers and ongoing contracts. The acquisition of summit is conducive to the company’s rapid entry into the core system of bank fund management, and the subsequent completion of localization transformation to form a leading advantage.
Profit forecast and investment suggestions
With the rapid development of China’s capital market, the financial IT industry has ushered in a high growth cycle. As a leading manufacturer, the company is expected to fully benefit. Referring to the annual performance forecast for 2021, the company adjusted the operating revenue forecast of the company from 2021 to 2023 to 5.469, 6.558 and 7.814 billion yuan, adjusted the net profit attributable to the parent company to 1.469, 1.809 and 2.253 billion yuan, and EPS to 1.01, 1.24 and 1.54 yuan / share, corresponding to 59.48, 48.32 and 38.80 times of PE. The company’s R & D investment is large and fully expensed, and the net profit margin is low. It is reasonable to adopt PS valuation method. In the past five years, the company’s PS has mainly operated between 10-30 times. With the continuous promotion of capital market reform, the industry is expected to maintain a high boom, and the company is expected to enjoy a high valuation level. With reference to the current PS valuation level, the company’s target PS in 2022 is slightly adjusted to 21 times, and the corresponding target price is 94.22 yuan. Maintain the “buy” rating.
Risk tips
The macroeconomic downturn affects the IT investment of downstream customers; The implementation of financial technology policies is lower than expected; The R & D and marketing of new products are lower than expected; The industry competition intensifies and the overall profitability of the industry decreases.
