\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
On January 26, the company released the performance forecast for 2021, realizing revenue of 5.47 billion (+ 31.1%), net profit of 1.47 billion (+ 11.2%) and deduction of non net profit of 950 million (+ 29.3%). Under the high base and epidemic situation, the annual performance is still growing rapidly, and the company has significant texture advantages. Maintain buy rating.
Key points supporting rating
The annual report forecast was released, and the performance continued to grow. It is expected to achieve revenue of 5.47 billion (+ 31.1%), net profit of 1.47 billion (+ 11.2%) and deduction of non net profit of 950 million (+ 29.3%) in 2021. It is estimated that the revenue in the fourth quarter is 2.37 billion (+ 28.4%), the net profit is 790 million (- 11.8%), and the net profit deducted is (+ 43.2%). Thanks to the impact of financial innovation policies, the main business income increased. At the same time, in order to meet the needs of digital upgrading and transformation of the financial industry, under the strategic investment, the personnel cost increased rapidly.
The new version of core products is expected to be in large quantities quickly and open a new procurement cycle. According to the official account, in December 20, 2021, the new generation of information management system O45 was officially launched on the Warburg foundation. It was the first time O45 was launched in the fund industry, marking a significant breakthrough in the digitalization transformation of the information management industry. O45 supports all products and all businesses, integrating the instruction, transaction, risk control and liquidation of assets at home and abroad. In addition, the new generation valuation system 6.0 was launched at Ping An Securities in December 2021, and other core products such as UF3 0. The new generation of TA is landing one after another. The subsequent volume of such products will drive faster growth of performance.
Acquire summit business and improve the capital business system. On November 26, 2021, the company announced that its holding subsidiary Yunying network acquired summit, a bank fund management system under finastra, for us $65 million (about 420 million yuan). This transaction is of great significance to improve the product line of Hang Seng fund management system and realize the internationalization strategy. It can quickly cut into the fund management business field of large and medium-sized banks, and systematically integrate with opics, which has covered small and medium-sized banks, to form synergy.
Valuation
Adjusted the net profit forecast from 2021 to 2023 to 1.47 billion, 1.89 billion and 2.31 billion, EPS to 1.01 million, 1.29 million and 1.58 million (assuming that the non recurring profit and loss is basically unchanged, the business growth continues, and the revision is 4 ~ 13%), the corresponding PE is 59x, 46x and 38x. The corresponding 2022 valuation has been at the bottom of the company’s valuation range, maintaining the buy rating.
Main risks of rating
Volatility of financial market scene; Personnel costs are high.
