Fujian Apex Software Co.Ltd(603383) (603383)
Leading financial it segment, with “buy” rating for the first time
Fujian Apex Software Co.Ltd(603383) is a leader in CRM and operation in the financial IT industry. The high prosperity of the financial industry promotes the growth of IT investment, and the company will fully benefit. In 2021, the company started the recruitment of 1000 people and increased its layout in the asset management and fund industries, with expected growth in the future. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 143 million, RMB 192 million and RMB 250 million respectively, corresponding to EPS of RMB 0.85, RMB 1.14 and RMB 1.49 per share respectively, and corresponding to PE of current stock price of 43.8, 32.5 and 24.9 times respectively. For the first time, give a “buy” rating.
The performance in the first three quarters of 2021 will accelerate and is expected to enter an accelerated growth period
In the first three quarters of 2021, the company achieved a revenue of 317 million yuan, a year-on-year increase of 39.7%, and a net profit attributable to the parent company of 76 million yuan, a year-on-year increase of 23.1%, realizing accelerated growth. By business, (1) Marketing: the company’s CRM products maintain a high market share and contribute to the main cash flow, while the operation and maintenance services with high gross profit margin will continue to contribute to profits; (2) Trading: the company’s self-developed new trading system will be fully implemented in 2020, the next city will be the first under the general trend of domestic substitution, and the proportion of product software revenue will be promoted at the same time; (3) Operation: the company’s business centralized operation solution is leading in the industry. It uses AI technology to actively promote the transformation from centralized operation to intelligent operation. The company’s three types of products have leading advantages in subdivided fields, and high growth can be expected in the future.
The high prosperity of downstream industries will promote the growth of IT investment, and the company will fully benefit
The downstream customers of the company are mainly financial companies such as securities, futures and funds. In 2020, the overall asset scale of securities and fund companies increased by more than 20%. The high prosperity of the financial industry will promote the growth of IT investment, and the company will fully benefit. In 2021, the company launched a thousand person recruitment plan, Promote the transformation in two directions: (1) from seller to Buyer: in the past, the company’s customers were mainly concentrated in the field of securities and futures, including more than 80 customers in the securities market, and the company’s share in the market segments remained at a high level. In the future, it plans to increase its layout in the fields of asset management, funds and private placement. (2) From periphery to core: in the past, the company’s business was mainly CRM system, and has established a certain customer base in asset management, fund, private placement and other fields. On the basis of existing customers, the company plans to gradually expand its products from CRM system to fund management and then to trading system from periphery to core.
Risk warning: product promotion is not as expected; Industry competition intensifies.
