Hundsun Technologies Inc(600570) (600570)
Event: on December 20, 2021, Hang Seng’s new generation asset management system o45 was launched in Huabao fund. This is the first launch of o45 in the fund industry, which means that the asset management technology of the fund industry has opened a new era.
comment:
Compared with O32, o45 not only realizes technological innovation, but also functional innovation:
1. Architecture Innovation: o45 is a loosely coupled SOA architecture, and the products are fully open.
2. Richer functional modules: o45 is a concept of product cluster. In addition to the original transaction execution function of O32, it also includes investment and research functions such as portfolio management and investment research, as well as operation functions such as valuation accounting, fund management and information disclosure.
We believe that the following points may be the motivation for financial institutions to replace o45: 1) the development language is more advanced; 2) Flexibility and stability of the system; 3) Fast trading speed, suitable for fund companies with large circulation of index funds; 4) Achieve the goal of integration of investment and research; 5) Herding: after some institutions take the lead in system upgrading, others may gradually replace them.
In terms of landing progress, the company introduced the experience of finastra, the world’s leading financial technology company, in investment decision-making business to jointly build PMS system; At present, the announced landing practices include the online promotion of some securities companies such as Huatai and Guohai, as well as the online promotion of Huabao fund.
Impact on operation: 1) Revenue: o45 is a concept of product cluster. On the one hand, it enriches the trading function of O32, supports all products, all businesses and covers domestic and foreign trading varieties; On the other hand, in addition to trading, it also includes portfolio management, asset management and operation, investment research and other functions. Based on this, we predict that o45 may be more than 3 times higher than O32 in terms of unit price. 2) Profit: the company’s profit margin is expected to further improve. The loose coupling architecture of o45 makes the implementation and delivery only involve the corresponding micro services and more lightweight; And o45 is based on a more open technology platform. Users can develop personalized services based on Hang Seng platform, and Hang Seng can focus more on standardized products. In terms of Hang Seng’s own new business R & D, o45 can be vertically divided according to business lines, and developers are responsible for professional business areas, so the R & D efficiency is expected to be improved.
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 65.6/52.8/42.6 times PE, maintaining the “buy” rating.
Risk tips: 1) the system promotion progress is less than expected; 2) Macro and policy risks; 3) Competitive risk
