\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
Event:
The company issued the 2021 annual report after the closing on March 30, 2022.
Comments:
The operating revenue increased by 31.73% year-on-year, and the large retail it and large asset management IT business grew well
In 2021, the company achieved an operating revenue of 5.497 billion yuan, a year-on-year increase of 31.73%. By industry, the revenue of large retail IT business was 2.111 billion yuan, a year-on-year increase of 39.79%; The IT business of large asset management realized a revenue of 1.706 billion yuan, a year-on-year increase of 39.84%; Data risk and infrastructure IT business realized a revenue of 354 million yuan, a year-on-year increase of 18.59%; Banking and Industrial IT business realized a revenue of 354 million yuan, a year-on-year decrease of 2.54%; Internet innovation business realized a revenue of 804 million yuan, a year-on-year increase of 33.69%; Non financial business realized a revenue of 163 million yuan, a year-on-year decrease of 6.47%. The company continued to maintain a moderate investment and acquisition efforts, and acquired Finastra’s Summit and Opics related businesses and intellectual property rights in Chinese mainland and Hong Kong and Macao Based on the acquisition of the new venture and financial integration.
The net profit attributable to the parent company increased by 10.73% year-on-year, and increased investment to maintain technology leadership
In 2021, the company realized a net profit attributable to the parent company of 1.464 billion yuan, a year-on-year increase of 10.73%; The net profit deducted from non parent company was 947 million yuan, with a year-on-year increase of 29.03%. The company continued to increase R & D investment and maintain the leading position in industry technology. The annual R & D cost was 2.139 billion yuan, a year-on-year increase of 43.00%, and the R & D cost rate was 38.92%, a year-on-year increase of 3.07 percentage points. In terms of products, the new generation of core products such as o45, valuation 6.0, Ta, financial sales and investment consulting products have been promoted smoothly and won the favor of customers. UF3 0 has achieved full-service online, and the distributed cloud native architecture has achieved in-depth cooperation with a number of securities companies. In terms of technology upgrading, the light technology platform continued to be deeper and stronger, released a series of new technology products, and launched the light cloud platform to comprehensively help the digital transformation and upgrading of industry customers.
It is proposed to repurchase 1.25 million to 1.875 million shares, showing the company’s confidence in the future development prospects
On February 17, the company issued the report on repurchasing the company’s shares by means of centralized bidding transaction. It plans to use its own funds to repurchase the company’s shares by means of centralized bidding transaction, which will be used for equity incentive or employee stock ownership plan. The total amount of share repurchase funds shall not be less than RMB 100 million (inclusive) and not more than RMB 150 million (inclusive), the repurchase price shall not exceed RMB 80 / share (inclusive), and the number of shares that can be repurchased is expected to be about 1.25 million-1.875 million. The share repurchase plan helps to enhance investor confidence, establish a perfect long-term incentive mechanism, fully mobilize the enthusiasm of the core team and promote the sustainable development of the company.
Profit forecast and investment suggestions
With the rapid development of China’s capital market, the financial IT industry has ushered in a high growth cycle, and the company is expected to fully benefit. It is predicted that the operating revenue from 2022 to 2024 will be 6.791, 8.261 and 9.946 billion yuan, the net profit attributable to the parent company will be 1.676, 2.052 and 2.532 billion yuan, the EPS will be 1.15, 1.40 and 1.73 yuan / share, and the PE will be 40.67, 33.23 and 26.93 times. The company’s R & D investment is large and fully expensed, and the net profit margin is low. It is reasonable to adopt PS valuation method. In the past five years, the company’s PS has mainly operated between 10-30 times. With the continuous promotion of capital market reform, the industry is expected to maintain a high boom. Recently, the overall market valuation level has been adjusted a lot. With reference to the current PS valuation level, the company’s target PS in 2022 is adjusted to 18 times, and the corresponding target price is 83.64 yuan. Maintain the “buy” rating.
Risk tips
The macroeconomic downturn affects the IT investment of downstream customers; The implementation of financial technology policies is lower than expected; The R & D and marketing of new products are lower than expected; The industry competition intensifies and the overall profitability of the industry decreases.
