\u3000\u3000 Hundsun Technologies Inc(600570) (600570)
Investment Event: on February 14, the company issued a share repurchase plan. The company plans to repurchase the company’s shares in the form of centralized bidding within the next 12 months at a price of no more than 80 yuan / share.
Share repurchases demonstrate development confidence, and incentive mechanisms promote the continuous improvement of employee energy efficiency. Based on the ceiling price of 80 yuan / share, the number of shares repurchased by the company is between 125-1875000 shares. The company’s share repurchase once again reflects the company’s confidence and value recognition of its own development prospects. In December 2020, the company issued the draft employee stock ownership plan and completed the share repurchase of about 8.4 million shares with a value of 800 million yuan from December 2020 to March 2021. After a lapse of more than a year, the Company repurchased shares again and used them for equity incentive or employee stock ownership plan, which will further stimulate and release the initiative of employees, encourage core employees to create greater value for the company, and also help to further improve the company’s long-term incentive mechanism and continuously improve the cohesion of employees.
The annual performance of 2021 exceeded expectations, and the core business and innovation track made concerted efforts. The performance forecast released by the company on January 26 shows that in 2021, the company’s revenue was 5.469 billion yuan, year-on-year + 31.06%, the net profit attributable to the parent was 1.469 billion yuan, year-on-year + 11.18%, and the non net profit attributable to the parent was 948 million yuan, year-on-year + 29.29%. The performance exceeded market expectations. The speed of the company’s digital transformation and upgrading has become the main driving force of the financial industry’s revenue growth. The company has also made breakthroughs in business and products. On January 26, the newly established Schroder Bank of communications financial management selection company provided it with an integrated solution for the construction of financial management subsystem; On February 9, Citic Securities Company Limited(600030) jointly built with Hang Seng Juyuan and Danwo intelligence, the industry’s first in-depth investment and research platform “investment and research magic cube platform” was officially released to help asset management institutions transform to investment and research digital intelligence. In the era of digitalization and digital intelligence upgrading in the financial industry, the company has strong competitiveness in both tracks, and its products and service capabilities have been continuously recognized by industry customers.
Policies to accelerate the development of financial technology: in January 2022, The central bank issued the financial science and technology development plan (2022-2025), put forward the vision of financial science and technology development during the 14th Five Year Plan period, defined the guiding ideology, four basic principles and six development objectives of financial science and technology development, and determined eight key tasks and five safeguard measures. On February 9, the central bank, the State Administration of market supervision, the CBRC and the CSRC jointly issued the financial standardization plan The 14th five year plan clearly mentions “standardization leads the construction of digital ecology in the financial industry” and “promoting the development of legal digital currency standards”. The two plans fully comply with the current development trend of digital economy, provide a larger stage for the empowerment of financial science and technology from the top-level design, and will promote the deeper integration and more sustainable development of Finance and science and technology. As a core enterprise in the field of financial technology, the company is expected to benefit from the new stage of financial digitization and accelerate its development by virtue of its deep technical accumulation and implementation ability and high-level cutting-edge R & D investment.
Investment suggestion: it is estimated that the total revenue of the company from 2021 to 2023 will be RMB 5.469/65.63/7.678 billion respectively, the net profit attributable to the parent company will be RMB 1.468/18.81/2.332 billion respectively, the EPS will be RMB 1.00/1.29/1.60 respectively, and the corresponding PE will be 55 / 43 / 34 times respectively, maintaining the “buy” rating.
Risk warning: the tightening of supervision orientation will have an adverse impact on the company’s business; The intensification of industry competition leads to the weakening of profitability; The implementation of product development and business promotion are not as expected.
