\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Events
The company released its 2021 annual report on the evening of March 30: during the reporting period, the company achieved an operating revenue of 3.726 billion yuan, a year-on-year increase of 24.97%; The attributable net profit was 396 million yuan, a year-on-year decrease of 12.60%; The attributable net profit after deduction was 362 million yuan, with a year-on-year increase of 22.53%. At the same time, it is proposed to pay a dividend of 2.00 yuan for every 10 shares. In this regard, our comments are as follows:
Key investment points
The performance of 2021 was in line with expectations, and the innovative operation business maintained a high growth rate
During the reporting period, the company achieved an operating revenue of 3.726 billion yuan, a year-on-year increase of 24.97%; The attributable net profit was 396 million yuan, a year-on-year decrease of 12.60%; The attributable net profit after non deduction was 362 million yuan, a year-on-year increase of 22.53%, in line with market expectations. By business: the software development business achieved a revenue of 2.86 billion yuan, a year-on-year increase of 28.16%, mainly due to the demand growth of large banks; The revenue of system integration business was 700 million yuan, a year-on-year increase of 16.61%; Innovative operation business achieved revenue of 164 million, with a year-on-year increase of 46.49%, mainly due to the continued healthy growth of digital retail business in the financial industry. The attributable net profit decreased by 12.60%, which was mainly due to the higher non recurring income from the disposal of associated enterprise Zhuhai yuchengxin and the superposition of the share based payment fee of 110 million yuan. After deducting non recurring profits and losses, the net profit attributable to shareholders of listed companies reached 362 million yuan, a year-on-year increase of 22.53%. The company’s comprehensive gross profit margin was 34.15%, a year-on-year decrease of 1PCT, mainly due to the fierce competition for financial science and technology talents and the rise of labor costs due to the strong demand of the industry. The sales / management / Finance / expense ratio of the company was 4.17% / 7.95% / – 0.16% respectively, with a year-on-year decrease of 0.67/0.55/0.65/pct respectively, and the R & D expense ratio was 11.67%, with a year-on-year increase of 1.16pct.
Financial, information and innovation have a comprehensive layout, and high-quality projects continue to land
In the field of financial information and innovation, the company has realized the independent control of core technologies and products after years of technology research and development. The company has created a number of second batch certification schemes for its customers, and has helped dozens of customers to complete the certification of its products. In 2021, the company participated in the technical verification and pilot projects of more than 20 subdivided information and innovation scenarios, and deeply cooperated with Huawei, Tencent, Baidu and other partners to launch multiple joint solutions in foreign markets in China. In 2021, the company continued to expand its territory of information and innovation business. The company won the largest and most difficult provincial urban commercial bank data governance and big data unified supervision platform project in the industry. The company won the bid for the largest rural commercial bank data middle platform project in China based on its own distributed and micro service technology architecture. At the same time, the company won the bid for a rural credit data portal platform project, creating a precedent for data commercialization operation in the rural credit system.
Continue to layout overseas markets and create new growth points in the future
The company has realized the strategic layout of “software business + innovative operation business + overseas business”, and takes the overseas business as a new growth point of Yuxin in the future. In 2021, the company made good progress in Southeast Asian countries such as Singapore, Indonesia, Malaysia and Cambodia. The company’s network transformation products, channel products, data products and Devops products were all piloted in overseas markets. The two innovative operation businesses in Indonesia are being promoted smoothly. At the same time, the company continues to integrate resources with Huawei, Tencent, nttdata, overseas Chinese Bank of Singapore and other partners to export the advanced products and services accumulated by the company in the Chinese market to the Southeast Asian market. With the company’s rich experience in the Chinese market, the smooth promotion of overseas business will open a new growth point for the company and become an important part of the development strategy in the next five years.
Profit forecast
We are optimistic about the continuous improvement of the company’s profitability driven by innovative business and financial information innovation. It is predicted that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 572 million, RMB 723 million and RMB 870 million respectively, EPS will be RMB 0.80, RMB 1.02 and RMB 1.22 respectively, and the current share price corresponding to PE will be 23, 18 and 15 times respectively, maintaining the “recommendation” investment rating.
Risk tips
It investment cycle risk of banks; The risk that innovation and overseas business expansion are not as expected; The risk of intensified market competition; The risk of repeated outbreaks; Macroeconomic downside risk.
