Hithink Royalflush Information Network Co.Ltd(300033) (300033)
Accurately grasp the mobile wave, and strive to develop AI to blossom and bear fruit
Throughout the development process of Hithink Royalflush Information Network Co.Ltd(300033) , the company’s accurate judgment of technology trend and high attention to R & D investment are indispensable for each step forward. As early as the beginning of 2007, Hithink Royalflush Information Network Co.Ltd(300033) laid out the mobile terminal prospectively, and showed its traffic advantages under the accurate grasp of the mobile wave. In addition, the company actively embraces cutting-edge technologies and effectively integrates with traditional businesses, and its strategic layout and transformation confidence based on cutting-edge technologies are profound changes generally ignored by the market.
“River card”: the flow is the king and the top beta leader
There is a positive correlation between the value-added telecom services of Hithink Royalflush Information Network Co.Ltd(300033) and the stock market, which is close to the C-end and accounts for a relatively high proportion, resulting in obvious beta attribute of the company’s performance. The business is affected by three factors, among which the number of active users is the basis, but it is difficult to have another significant boost opportunity in the long run. The space for improvement in the future lies in the improvement of ARPU value and payment rate. According to our calculation, the peak value of the company’s product payment rate does not exceed 7%, which still has a large boost compared with similar applications.
“Bottom card”: building a foundation for R & D, containing unlimited possibilities
Forward looking R & D layout and AI blossom: the company has laid out R & D in the AI field in 13 years and continued to increase R & D efforts. In 17-20 years, R & D investment always accounted for more than 20%, and R & D personnel accounted for more than 50% At present, an ecosystem of AI open platform + AI components + industrial solutions has been formed, and AI + finance and AI + industries have mature landing applications.
Love fund: repeat ant and Tiantian fund to see how love fund breaks through. Through the development of the third-party fund consignment industry, we believe that the two waves of transfer of residents’ assets to Internet financial management and public offering “out of the circle” have greatly promoted the development of the industry. In these two waves, ant fund has surpassed the daily fund. We believe that the ecological flow gap is the core and the application innovation brought by yu’ebao is the catalyst. Back to love fund, based on the 33 million + monthly life in Hithink Royalflush Information Network Co.Ltd(300033) ecology, AI empowerment is expected to help love fund take off. Ifind: an excellent SaaS model, with favorable weather, time and place. After years of R & D accumulation, the company has strong competitiveness in data and functions. It is expected to achieve a breakthrough in market share by virtue of price differentiated competition strategy, excellent services and distinctive functions, so as to promote rapid revenue growth.
Intelligent investment consultant: data dimension, technology base and product channel are the core elements of force intelligent investment consultant, and Hithink Royalflush Information Network Co.Ltd(300033) is one of the few companies with three-dimensional advantages. It took the lead in setting up an artificial intelligence asset management company and conducted intelligent investment consultant exploration with a large amount of its own funds.
Investment advice
It is estimated that the revenue of Hithink Royalflush Information Network Co.Ltd(300033) 21-23 years will be 3.898 billion yuan, 5.011 billion yuan and 6.100 billion yuan respectively, with a year-on-year growth rate of 37.1%, 28.5% and 21.7% respectively; The net profit attributable to the parent company in 21-23 years was 2.402 billion yuan, 3.038 billion yuan and 3.728 billion yuan respectively, with a year-on-year growth rate of 39.4%, 26.4% and 22.7% respectively; The current market value corresponds to 29 / 23 / 19 times of PE in 21 / 22 / 23 years respectively. Hithink Royalflush Information Network Co.Ltd(300033) is the leading enterprise of China’s Internet financial IT company. We choose East Money Information Co.Ltd(300059) and Hundsun Technologies Inc(600570) as comparable companies. The current market value corresponds to 52 and 41 times of PE in 21 and 22 years respectively. There is still much room for horizontal comparison of the company’s valuation; If compared vertically, Hithink Royalflush Information Network Co.Ltd(300033) has a significant gap in valuation compared with 61 times of its rolling P / E ratio in the past three years. For the first coverage, give a “recommended” rating.
Risk statement
The capital market is less active than expected; The diversion of love fund is less than expected; The market speed of Ifind is lower than expected; The technical improvement is less than expected
