Hundsun Technologies Inc(600570) (600570)
Event overview
Recently, the official account of Hundsun Technologies Inc(600570) was released: the new generation of asset management system O45, which was independently developed by the company, officially launched on December 20, 2021 in Warburg foundation. This launch is the first launch of o45 in the fund industry, marking a major breakthrough of the new generation core system in the field of asset management technology.
Analysis and judgment:
O45 launched Huabao fund, highlighting breadth + speed + flexibility
Huabao fund is the core pilot institution of Hundsun Technologies Inc(600570) new generation core system o45. From the perspective of Huabao fund’s three-year digital transformation plan, investment research integration is the ultimate goal. The specific realization path includes data integration, main process integration and terminal integration, while o45 undertakes the key functions of main process integration and terminal integration. According to the official tweets, the o45 products officially launched by Huabao fund mainly focus on four new functions, namely:
Covering domestic and foreign trading varieties;
Get through the real-time risk control system at home and abroad;
Unified platform for instruction, trading, risk control and clearing of domestic and foreign assets;
Build a more open ecology.
For these new functions (and performance advantages), we further interpret that o45 will bring three enhancements to the buyer’s investment system:
First, business breadth: the officially launched o45 supports all products and businesses, covers domestic and foreign transaction varieties, helps Huabao fund get through the domestic and foreign real-time risk control system, and is an asset management platform integrating instruction, transaction, risk control and liquidation of assets at home and abroad. The creation of o45 also introduces the experience of finastra, the world’s leading financial technology company, in investment decision-making business, to help investment research management realize the leap from how to buy to who buy and then to auto buy faster.
Second, transaction speed: o45 has a powerful technical core, so that day trading can accommodate tens of millions of transactions. Real time risk control technology can complete the trading and risk control judgment of a 300 stock basket in one second.
Third, architecture flexibility: o45 is built based on the new generation of Hang Seng distributed microservice technology base, which is more open and scalable. It innovates in system architecture, coupling, system performance, system capacity, interface openness, technical platform, version management and operation management, so as to truly realize the decoupling of different businesses.
How to understand o45’s new product strategy?
Since 2020, Hundsun Technologies Inc(600570) new o45 has been the focus of market attention. Previously, it was launched locally in Huatai Securities Co.Ltd(601688) asset management & self support department (May 28, 2021). This time, it is to go further and release a clearer signal – o45 products are fully mature.
Strategic significance: o45 iteration will become a new growth pole of the company, with an estimated incremental contribution of more than 3 billion yuan. O45 is a new generation star product of the company’s core product line of asset management, At the beginning of launch (September 25, 2020) has attracted extensive attention in the market. The core function of o45 is to provide one-stop investment management solutions for professional institutional investors. In terms of functional areas, the main functions of O series are stock trading, subscription of new shares, bond trading, financing and securities lending, warrant trading, ETF trading, lof fund trading, open-end fund subscription, etc. o45 is asset management As the core hub of institutional investment management, its emergence has milestone significance in the digital transformation process of asset management industry. The system covers multiple business links such as investment research, portfolio management, investment transaction, risk compliance, fund management, asset management operation, valuation accounting and information disclosure, and comprehensively considers the whole field work scenarios of various posts in the asset management industry.
It is judged that the successful landing of o45 in Huatai Securities Co.Ltd(601688) and Huabao fund has played a good demonstration role for all buyer’s investment institutions. Based on the open ecology, o45 is expected to further expand to other securities companies and other types of asset management departments. From the perspective of incremental calculation, we assume that the subsequent official order of o45 is ten million yuan + level. Combined with the scale of public fund, insurance asset management and self operated / asset management of securities companies, the o45 new product iteration will bring billions of yuan to the company’s large asset management business line, that is, the new product incremental logic will resonate with the existing political reform dividend logic and effectively boost the company’s performance growth.
Driven by retail + asset management, political reform dividend resonates with new product iteration (Continued)
Return to fundamentals. The previously released third quarterly report showed that the revenue of large retail it in the first three quarters was 1.13 billion yuan, a year-on-year increase of + 31.1%; Big asset management it realized a revenue of 1 billion yuan, a year-on-year increase of + 52.2%. In other businesses, the bank’s it revenue was 180 million yuan, a year-on-year increase of – 7.4%; Data risk and infrastructure it revenue was 200 million yuan, a year-on-year increase of + 51.8%; Internet innovation business revenue was 520 million yuan, a year-on-year increase of + 30.1%.
1) Large retail it: UF3 0 product signed a new customer, new generation TA, financial management 5.0, bank comprehensive financial management 6.0 and other new customers.
2) Big asset management it: o45 products further promote the key coverage of core customers in state-owned banks, joint-stock banks and urban commercial banks, and judge that Q3 is expected to accelerate the signing process.
We believe that the general trend of political reform remains unchanged in 2021, and large retail and asset management are expected to continue the two wheel drive. At present, the merger of Shenzhen main board and small and medium-sized board has been launched, and the new policy of follow-up reform is expected to form a policy relay to accelerate the outbreak of it track in the capital market. The company can provide integrated solutions for various political reforms, greatly benefiting from the reform dividend, and the subsequent performance is expected to exceed expectations. Moreover, innovative products and cloud are expected to form a new growth power in the medium and long cycle. At present, o45 iteration has entered the practice period and will gradually sign and land with public offering, private placement and other asset management institutions. It is expected that the overall business demand will continue to strengthen in 2022.
Investment suggestions:
Keep the profit forecast unchanged: it is estimated that the revenue from 2021 to 2023 will be RMB 5.56/69.8/8.85 billion respectively, with a year-on-year increase of 33.1% / 25.7% / 26.8% respectively; The net profit attributable to the parent company was RMB 1.80/2.33/3 billion respectively, with a year-on-year increase of 36.4% / 29.5% / 28.7% respectively; The corresponding EPS is 1.73/2.24/2.88 yuan respectively. On December 23, 2021, the share price was 64.01 yuan, corresponding to 52 / 40 / 31 times of PE respectively. Fundamentals reversed upward, firmly optimistic, and maintained the “buy” rating.
Risk tips:
The risk that the promotion of financial innovation policy is less than expected and the progress of innovative business is less than expected.
