Tansun Technology Co.Ltd(300872) (300872)
The bank is a leading IT enterprise, and the diversified layout drives the high growth of the company. Tansun Technology Co.Ltd(300872) was established in 2003. At present, it mainly serves customers in the financial industry dominated by banks. At the beginning of 2021, the company released the new business strategic deployment, which divided the business system into five directions: consulting, financial technology products, financial IT services, cloud computing and operation services. Relying on the independently developed core technologies and products, the company activated the innovation vitality in the financial field and promoted the financial technology to a higher level. The company’s operating performance is outstanding, with a compound growth rate of 31.8% in revenue and 25% in net profit over the past seven years; The business structure tends to be improved, and technology development is the largest business of the company. In 2020, the proportion will increase to 67.08%, and the growth rate will remain above 27% for many years, which will continue to inject power into the overall performance growth of the company.
Big banks take the lead in driving a new round of banking IT business cycle. In recent years, driven by the needs of technology, policy and banking business transformation, Bank Of China Limited(601988) IT market demand will continue to grow and show an accelerating trend. According to the IDC report, the overall IT investment in Bank Of China Limited(601988) industry increased to 132.7 billion yuan in 2019, with CAGR of 1.0 billion yuan in seven years 3%, with a year-on-year growth rate of 18.8% in 2019; The IT solution Market in the Bank Of China Limited(601988) industry is more impressive, with a growth rate of more than 20% for many years, and a year-on-year growth rate of 23.9% in 2019. Among them, the proportion of it expenditure of large state-owned commercial banks is maintained at 43% – 46%, and the proportion is gradually increasing. Da will become the main force in the new construction cycle.
The traditional business boom is upward, and many products such as credit card, credit, data and risk management are leading the industry. According to CCID Consulting’s 2020 report, the company’s credit card and risk management solutions ranked first, customer relationship management solutions ranked second, and credit, business intelligence and transaction banking solutions ranked third. Under the joint action of policies such as credit creation and strong supervision and business development needs such as retail finance, small and micro finance and supply chain finance, credit card system, credit system, data system and risk management system have become the focus of bank investment in recent years. According to IDC report statistics, the credit system and risk management system of Bank Of China Limited(601988) industry in 2019 increased by 46% and 47% year-on-year respectively.
The financial cloud market ushered in opportunities, and the company accelerated the layout of cloud business. In recent years, China’s large banks are accelerating the pace of “going to the cloud”. Last year’s epidemic is also forcing the rapid development of the financial cloud market. According to IDC’s data, the scale of China’s financial cloud market reached US $4.64 billion in 2020, with a year-on-year increase of 39%, It has accounted for nearly 20% of the overall market of IT solutions (including hardware, software and services) in the whole financial industry, with a growth rate of more than four times that of the latter. The company has successively invested in Beijing Jinshi Hongcheng Technology Co., Ltd. (PAAS) and Beijing heshunhengtong Technology Co., Ltd. (SaaS), and plans to establish joint ventures with Ningbo Shenghe and others (scenario SaaS), cloud computing is identified as an important transformation direction of the company’s future business, forming an important business growth point.
Profit forecast and investment suggestions: it is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1.851 billion / 2.509 billion / 3.316 billion respectively, the net profit attributable to the parent company will be RMB 178 million / 234 million / 317 million respectively, the corresponding EPS will be RMB 0.79/1.04/1.41 respectively, and the P / E will be 43 / 33 / 24 times respectively, giving a “buy in” rating.
Risk tip: the regulatory policy changes, the pressure of talent competition intensifies, the new business expansion is less than expected, and the public data used in the research report may have the risk of information lag or untimely update.
