\u3000\u3 China Vanke Co.Ltd(000002) 649 Beyondsoft Corporation(002649) )
Event overview
On March 22, 2022, the company released its 2021 annual report, realizing an annual operating revenue of 5.532 billion yuan, a year-on-year increase of 28.36%; The net profit attributable to the parent company was 404 million yuan, a year-on-year increase of 22.10%; The net profit deducted from non parent company was 365 million yuan, with a year-on-year increase of 24.04%. The company achieved steady growth in 2021.
Lay a good foundation for growth and development on the track
From the perspective of revenue splitting, the company’s core financial, Internet and high-tech tracks have achieved good growth in 2021. The financial industry realized a revenue of 1.135 billion yuan, a year-on-year increase of 47.61%; The Internet industry realized a revenue of 2.136 billion yuan, a year-on-year increase of 37.52%; The high-tech industry realized a revenue of 1.288 billion yuan, a year-on-year increase of 16.86%. The company’s three core businesses have achieved good business results.
From the perspective of gross profit margin, the company’s comprehensive gross profit margin in 2021 was 26.16%, with a year-on-year increase of 1.68pct. On the one hand, due to the rapid growth of financial business with high gross profit margin, the company’s income structure showed a benign development. On the other hand, the gross profit margin of the company’s tracks in all industries has increased slightly compared with that in 2020, reflecting the improvement of the comprehensive competitiveness and scale effect of the company’s product solutions.
In terms of cash flow and funds in hand, the company realized a net operating cash inflow of 397 million yuan in 2021. By the end of 2021, the company’s monetary capital had reached 1.874 billion yuan. Abundant cash flow helps the company to improve the business layout of market segments through strategic investment, further expand the strategic depth, supplement industrial customer resources, precipitate and reuse the technical capacity at the forefront of the market, so as to continuously improve the per capita income generating capacity and profitability on the basis of steady operation.
In addition, sufficient funds also ensure that the company will give back its operating results to shareholders in a timely manner. According to the profit distribution plan for 2021 disclosed in the company’s annual report, the company plans to distribute 180 million yuan to all shareholders, accounting for 45% of the net profit attributable to the parent company. The large proportion of dividends also reflects the good asset quality of the company.
Strategic layout, financial technology, endogenous + epitaxial two wheel drive
The financial industry dominated by banks is the vertical industry in which the company focuses on strategic layout. In 2021, the revenue of the company’s financial industry increased by 47.61% year-on-year, which also reflects the results of the company’s strategic layout. In the field of banking, according to the disclosure in the annual report, the company has maintained long-term and stable business cooperation with state-owned banks such as China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) , China Merchants Bank Co.Ltd(600036) , Industrial Bank Co.Ltd(601166) , Shanghai Pudong Development Bank Co.Ltd(600000) and many urban and rural commercial banks.
From the perspective of development strategy, the company adopts the development mode of endogenous + epitaxial two wheel drive in the financial industry. On the one hand, through the accumulation of rich it service projects, the company has internally formed a series of bank IT solution business systems, mainly including bank management solutions such as data intelligence, regulatory compliance and risk management, bank channel solutions such as mobile banking and Internet banking, digital business solutions such as open banking, scenario finance for small and medium-sized banks and other innovative businesses.
On the other hand, with sufficient funds in hand, the company adopts the way of “running fast in small steps” to focus on foreign investment in fintech (Financial Technology) products and solution enterprises along the strategic development direction. In May 2021, the company wholly acquired rongyitong, a leading manufacturer of channel solutions, which has unique experience and mature solutions in mobile channel construction, data analysis and user experience of financial institutions.
Share repurchase demonstrates the company’s confidence in long-term development
On October 25, 2021, the company held the 15th interim meeting of the Fourth Board of directors, deliberated and approved the proposal on share repurchase scheme, and agreed that the company would use its own funds to repurchase part of the company’s shares in the form of centralized bidding transaction for the subsequent implementation of equity incentive plan or employee stock ownership plan. The total capital of this repurchase shall not be less than 130 million yuan (inclusive) and not more than 260 million yuan (inclusive), and the repurchase price shall not exceed 16 yuan / share (inclusive). On January 6, 2022, the company issued the announcement on the progress of share repurchase. As of December 31, 2021, the company had repurchased 114200 shares, accounting for 1.93% of the total shares, with a cumulative turnover of 132 million yuan. We believe that the company’s share repurchase plan, on the one hand, demonstrates confidence in future development; on the other hand, the repurchase of shares for subsequent equity incentives is also expected to bind the interests of core employees, so as to promote the sound development of the company.
Investment advice
Beyondsoft Corporation(002649) as China’s leading global oriented software and information technology service provider, the current strategic layout of the financial technology industry is expected to achieve long-term steady growth through endogenous + extended two wheel drive. We expect the company to achieve an operating revenue of RMB 6.769/82.91/10.212 billion in 2022 / 23 / 24, with a year-on-year increase of 22.3% / 22.5% / 23.2%. The net profit attributable to the parent company was 504 / 629 / 789 million yuan, with a year-on-year increase of 24.8% / 24.8% / 25.4%. For the first time, the investment rating of Buy-A is given, and the six-month target price is 15.33 yuan, which is equivalent to 18 times the dynamic P / E ratio in 2022.
Risk warning: the research and development of core technology is not as expected; Product promotion and industrial ecological construction were not as expected
