\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
The bank's it head enterprises have accumulated momentum and actively laid out a new digital RMB track
Yusys Technologies Co.Ltd(300674) as the leading manufacturer of bank it track, it has accumulated strong strength in software development, system service and business operation for more than 20 years, and can provide all types of bank IT solutions covering credit, channel, data and supervision. According to IDC data, the company accounted for 4.3% of the market share of IT solutions in Bank Of China Limited(601988) industry in 2020, ranking first among listed enterprises. The company has accumulated profound customer resources, covering more than 1000 institutions led by the people's Bank of China, three major policy banks, six major state-owned commercial banks and 12 joint-stock banks. In addition, the company has actively arranged the emerging track of several currencies. It is estimated that the digital RMB is expected to give birth to a bank IT market space of nearly 2.481 billion yuan. At present, the company has joined hands with major banks to deeply participate in many links of several currencies pilot.
The innovative business grows rapidly, and the distributed architecture drives the downstream demand expansion.
The innovative business of the company is divided into business credit, scenario operation and technology operation, which deeply meets the development needs of small and medium-sized banks and provides all-round empowerment of technology platform + business docking + business operation. According to the performance express, the revenue of innovative operation business in 2021 increased by 46.49% year-on-year, showing a trend of rapid expansion. In the future, the business is expected to help the company continuously improve the comprehensive gross profit level. At the same time, with the rapid advancement of financial digitization, the original centralized architecture is gradually difficult to adapt to the new format of digital finance with high concurrency, high mobility and high compatibility. The company takes distributed architecture as the focus of R & D investment. Taking this fixed increase as an example, the raised fund of 1.115 billion yuan is mainly invested in the development of micro service architecture and distributed platform. We believe that the company's R & D strategy and product playing method are highly matched with the market demand and are expected to benefit from the rapid penetration and extensive deployment of distributed architecture.
The wave of financial digitalization has accelerated its penetration, and the growth rate of bank IT investment has exceeded expectations.
From the perspective of policy, the financial digital transformation is the main theme of the bank's IT development. In this environment, the financial IT industry leader with a more comprehensive business system and strong technical strength will take the lead in benefiting and become the preferred partner for the upgrading of the bank's business systems and the rapid development and implementation of China Taiwan business. From the perspective of IT investment in the downstream banking industry, according to CCID's calculation, in 2020, with the accelerated penetration of financial technology and business demand and industry competition forcing software innovation, the scale of bank IT investment increased by 43.6% faster than expected, reaching 190.64 billion yuan; In view of the gap between the IT investment scale and proportion of Bank Of China Limited(601988) industry and major international banks, looking into the future, the bank's IT investment scale is expected to continue to increase, driving the company's revenue to continue to increase.
Investment advice
Yusys Technologies Co.Ltd(300674) has been deeply engaged in the IT field of banks for more than 20 years. On the one hand, with the gradual increase of financial digitization policy, in order to adapt to the new business format and industry competition, the demand for it development of banks continues to be strong, and is gradually moving towards an independent, controllable, efficient and economical domestic distributed architecture; On the other hand, the company's innovative business results show that the innovative mode of co construction and co operation has brought considerable gross profit performance; In addition, with Baidu, Tencent, Huawei and other companies to build a financial cloud and data platform business is also gradually landing revenue. We expect Yusys Technologies Co.Ltd(300674) 2022-2024 to achieve revenue of RMB 4.579 billion, RMB 5.503 billion and RMB 6.507 billion respectively, with a year-on-year increase of 22.9% / 20.2% / 18.2%; The net profit attributable to the parent company was 498 / 612 / 757 million yuan, with a year-on-year increase of 26.1% / 22.9% / 23.6%. It was covered for the first time and given a "buy" rating
