\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Events
The company released its annual report for 2021, which was in line with expectations as a whole. The company's operating revenue in 2021 was 3.726 billion yuan, a year-on-year increase of 24.97%; The net profit attributable to the parent company was 396 million yuan, a year-on-year decrease of 12.60%; The net profit deducted from non parent company was 362 million yuan, with a year-on-year increase of 22.53%; The net profit attributable to listed companies after deducting non recurring profits and losses and excluding the impact of share based payment expenses was 469 million yuan, an increase of 22.03% over the same period of last year. We believe that this is related to the rapid growth of the company's software business with high gross profit (gross profit margin 37.77%) and innovative operation business (gross profit margin 74.77%). In the fourth quarter of 2021, the company's operating revenue was 1.673 billion yuan, a year-on-year increase of 23.05%; The net profit attributable to the parent company was 241 million yuan, a year-on-year decrease of 23.98%; The net profit attributable to the parent company after deduction was 235 million yuan, with a year-on-year increase of 34.92%;
The software business is growing rapidly, the innovative operation business has become the second largest growth engine, and the gross profit margin is expected to increase
The company's annual software development business revenue reached 2.86 billion yuan, an increase of 28.16% over the previous year, mainly due to the demand growth of large banks. Meanwhile, the innovative operation business continued to maintain a rapid growth trend, with the annual revenue reaching 164 million yuan, an increase of 46.49% over the previous year, mainly due to the continued healthy growth of digital retail business in the financial industry.
The company's comprehensive gross profit margin was 34.15%, slightly lower than that of the previous year. The strong demand in the industry led to fierce competition for financial and scientific talents, and the labor cost increased year-on-year. With the continuous improvement of the proportion of the company's high gross profit margin business and the gradual improvement of refined management ability, the company's gross profit margin is expected to continue to rise.
High R & D investment creates high product power, and the construction of financial information innovation ecology has been steadily promoted
The company continued to increase R & D investment, with an increase of 38.72% in 2021 over the previous year. From 2018 to 2021, the proportion of the company's R & D investment in operating revenue continued to rise, from 8.6% to 11.67%. We believe that high R & D not only maintains the strong competitiveness of the company's main product lines, but also helps the company make breakthroughs in many business directions. At the same time, the company continued to deepen the cooperation with ecological partners such as Huawei, Tencent, Baidu and various head database manufacturers, and the construction of financial information and innovation ecology was steadily promoted.
The head bank IT company is in a stable position. It is expected to usher in a revenue profit scissors gap in 22 years and maintain the buy rating
We believe that the company is in a high boom track, the position of head bank IT company is stable, the growth rate of high gross profit business is fast, and the company is expected to usher in a revenue profit scissors gap in 22 years. From 2022 to 2024, the expected revenue is 4.645/56.99/709 billion yuan, and the net profit is 5.70/7.43/945 billion yuan. At present, the corresponding PE of the stock price is 22.35/17.14/13.48 times respectively, maintaining the "buy" rating.
Risk tips: 1) repeated outbreaks have resulted in the implementation of landing and overseas expansion less than expected; 2) Market competition intensifies risks; 3) Regulatory policy risk;
