\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 03 Beijing Compass Technology Development Co.Ltd(300803) )
Logic 1: the Internet securities industry has entered the era of “content is king”, and internet securities companies are transforming to wealth management. China’s Internet securities industry grew steadily and the number of users continued to grow. Internet securities regulatory policies are gradually tightened, and the industry will enter the stage of “content is king”. By comparing China stock market news, Jiaxin wealth management and futu securities, it can be seen that Internet securities companies with financial licenses all choose to transform to wealth management.
Logic 2: Beijing Compass Technology Development Co.Ltd(300803) : the performance of the old financial information service provider has stabilized and rebounded. 1) The company has been deeply engaged in the financial information service industry for more than 20 years, has a stable equity structure, and implements equity incentive to demonstrate its confidence in long-term development. 2) The revenue of the company’s financial information service business accounted for more than 90%. 3) In terms of finance, the company’s operating income increased steadily and the growth rate accelerated, and the net profit attributable to the parent company rebounded steadily; The profit margin stabilized and rebounded, and the expense rate decreased. 4) The company’s financial information business has built a complete product matrix, and medium and high-end products have gradually become the main force driving revenue growth.
Logic 3: the company plans to acquire Wangxin securities, which is expected to become the second Internet enterprise with securities business license in China. If the company can complete the acquisition of Wangxin securities, it will become the second Internet company with brokerage license in China. On the one hand, it will help broaden the company’s customer acquisition channels. On the other hand, the company will transform into an Internet brokerage, so that the company can obtain business qualifications such as fund consignment and asset management, greatly enhance the company’s professional ability to provide customers with wealth management, and open a new income growth curve.
Profit forecast and investment suggestions: considering the steady growth of the company’s financial information service business, if the successful acquisition of Wangxin securities makes up for the brokerage license, the company’s customer acquisition channels will continue to expand. At the same time, it will obtain business qualifications such as fund consignment and asset management, which is expected to open a new revenue growth curve. We expect the company to achieve operating revenue of 1.331 billion yuan, 1.956 billion yuan and 2.841 billion yuan from 2022 to 2024, with a year-on-year increase of 42.7% and 47% respectively 45.2%； From 2022 to 2024, the net profit attributable to the parent company was 280 million yuan, 441 million yuan and 607 million yuan respectively, with a year-on-year increase of 58.9%, 57.4% and 37.8% respectively; From 2022 to 2024, EPS is 0.69 yuan, 1.09 yuan and 1.5 yuan respectively, and PE corresponding to the closing price of 37.75 yuan on March 16, 2022 is 54.6x, 34.69x and 25.17x respectively. For the first time, give a “buy” rating.
Risk tips: 1) the promotion of medium and high-end products is less than the expected risk; 2) The risk that the research and development of new products and new functions is less than expected; 3) Risk of market share decline due to intensified industry competition; 4) The acquisition of Wangxin securities has not been completed and there is uncertainty.
