\u3000\u3000 Yusys Technologies Co.Ltd(300674) (300674)
Event:
The company issued the 2021 annual performance forecast after the closing on January 28, 2022.
Comments:
Operating income continued to grow steadily, and increased investment in research and development of new financial technology products
Benefiting from the accelerated promotion of the national information technology application innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) development strategy in the financial industry and the comprehensive development of the digital transformation of the banking industry, the company’s operating revenue continued to grow steadily with the competitive advantages of its main product lines such as credit, data, channels and supervision in the market. In 2021, the company’s software development and service revenue is expected to increase by about 28% over the same period of last year, mainly from the relevant business needs of large commercial banks; The innovative operation business continues to maintain a rapid growth momentum, with a year-on-year increase of more than 45%. In terms of investment, the company takes the R & D of new financial technology products as one of the key development strategies, continues to increase R & D investment, further improve the standardization of products, and consolidate the business leadership of new products, so as to maintain a sustainable leading competitive advantage in medium and long-term development. At the same time, the gross profit margin of the company’s software business decreased slightly due to the fierce competition for financial science and technology talents and the rise of labor costs.
Excluding share based payment expenses, it is estimated that the net profit deducted from non parent company will increase by 19.60% – 23.50% year-on-year
In 2021, the company expects to realize a net profit attributable to the parent company of 382-397 million yuan, a year-on-year decrease of 12.34% – 15.65%; It is expected to realize a net profit of 348-363 million yuan, a year-on-year increase of 17.93% – 23.01%. The main factors affecting the net profit include: 1) the company estimates that the impact of non recurring profits and losses on the net profit in 2021 is about 34 million yuan, mainly the income from the disposal of the equity of the associated company Zhuhai yuchengxin Technology Co., Ltd. and government subsidies; 2) The company’s granting of restricted shares to employees is expected to generate about 110 million yuan of share based payment expenses in 2021. After excluding share based payment expenses, the company expects to realize a net profit of 460-475 million yuan, a year-on-year increase of 19.60% – 23.50%.
Through the fixed increase of 1.115 billion yuan, the raised investment projects help to improve the core competitiveness
On January 28, the company issued the listing announcement of issuing shares to specific objects and listing on the gem in 2020, issuing 50.4525 million shares to specific objects at an issue price of 22.10 yuan / share, raising a total of 1.115 billion yuan and a net amount of 1.097 billion yuan after deducting the issuance expenses. The raised funds will be invested in “online financial platform construction project for small, medium-sized and micro financial institutions”, “intelligent analysis and application platform construction project based on artificial intelligence technology”, “comprehensive risk and value management construction project” and supplementary working capital, which will help the company further improve its product structure, improve its R & D level and consolidate its position in the industry.
Investment advice and profit forecast
With the deep integration of Finance and science and technology, Xinchuang continues to promote in the financial industry, and the banking industry is expected to continue to increase it investment. With the position of industry leader, the company is expected to fully benefit from the new business cycle. It is predicted that the company’s operating revenue from 2021 to 2023 will be 3.774 billion yuan, 4.524 billion yuan and 5.387 billion yuan. Referring to the performance forecast of 2021, the net profit attributable to the parent company is adjusted to 390 million yuan, 556 million yuan and 745 million yuan, and the EPS is 0.55, 0.78 and 1.05 yuan / share, corresponding to 42.77, 30.00 and 22.40 times of PE. At present, the pettm of the computer (Shenwan) index is 49.1 times. Since the listing, the PE of the company mainly operates in the range of 25-65 times. It is expected that the CAGR of the net profit attributable to the parent company in the next three years will be 18.04%, giving the company 40 times the target PE in 2022, and the corresponding target price is 31.20 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; It investment in banking industry is less than expected; The business expansion of Xinchuang is less than expected; The promotion of innovative operation business is less than expected; Overseas business promotion is less than expected; Market competition intensifies.
