Hundsun Technologies Inc(600570) (600570)
Event 1: Recently, four capital market reforms have been intensively introduced, which is conducive to the stability of the existing competition pattern
On December 3, four capital market reforms were intensively introduced, including the pilot optimization of account management functions of securities companies, the management measures for income swap business of securities companies, the guidance on insurance funds participating in securities lending business and promoting the standardized development of derivatives business.
1) As for the optimization of account management function, the relevant transformation involves investor terminal, account, capital, legal person clearing and other systems. According to the idea of “pilot in batches and gradual liberalization”, the CSRC first selected 10 securities companies for pilot, which is intended to transfer the funds of various capital accounts such as brokerage, credit and derivatives under the customer’s name, so as to provide systematic solutions for wealth management.
2) As for the income swap business of securities companies, the relevant transformation involves trading, investor suitability, capital, risk, data submission and other systems. At present, the institutions involved include 7 primary dealers of OTC options and 33 secondary dealers of OTC options.
3) As for the participation of insurance funds in securities lending business, the relevant transformation involves refinancing, risk management, compliance management and other systems, including 238 insurance companies and 111 securities companies (excluding asset management companies).
4) In terms of the guidance on the standardized development of derivatives business, the relevant transformation involves derivatives trading, clearing, settlement, risk management, data submission and other systems, including banks, insurance, securities companies, funds, futures and other financial institutions.
Since the system transformation is mostly based on single source procurement in the existing system, the intensive introduction of capital market reform is conducive to the further stability of the existing competition pattern; And the policies are mostly rigid transformation needs, which is conducive to stabilizing income fluctuations and walking out of the independent alpha market. Based on this, we believe that the industry leader Hundsun Technologies Inc(600570) benefits most from the intensive catalysis of a series of current policies.
Event 2: cloud, digital, chain and other cutting-edge products were released, and new market space was further opened
From December 1 to 3, Hundsun Technologies Inc(600570) held 2021light developer cloud conference. During the meeting, the company released a number of cutting-edge products, including the self-developed financial distributed database lightdb and the collaborative sharing platform light cloud. At present, lightdb has been successively applied to hang seng TA products, Hang Seng efficiency platform and other systems, and explored domestic database application scenarios with financial customers to promote the sound development of financial information innovation. The light cloud platform has brought three new products: cloud, digital and chain. This time, it has released a new generation of cloud native base light core + openeuler container cloud joint solution, online data service “constant number”, blockchain public service platform “h-baas”, etc. A series of product releases based on cutting-edge technologies such as cloud, digital and chain verify the R & D prospect of Hundsun Technologies Inc(600570) as an industry leader and help the company occupy the highland of the market based on cutting-edge technologies.
We maintain the profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 5.417/68.65/8622 billion, and the net profit will be RMB 1.431/17.78/2204 billion, corresponding to 60.0/48.3/39.0 times PE, maintaining the “buy” rating.
Risk tips: 1) macro and policy risks; 2) Competitive risk; 3) Technology development direction risk
