\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Revenue growth was steady, excluding share based payment and non post economic performance. The company’s revenue was 3.73 billion yuan, a year-on-year increase of 25%, the net profit attributable to the parent was 400 million yuan, a year-on-year decrease of 13%, and the non attributable parent was 360 million yuan, a year-on-year increase of 22.5%. In the fourth quarter alone, the revenue was 1.67 billion yuan, a year-on-year increase of 23%, 240 million yuan to the parent, a year-on-year decrease of 24%, and 230 million yuan to the non parent, a year-on-year increase of 35%. From the revenue side, the growth of the company is relatively stable, in which the software business increased by 28% year-on-year, and the innovative operation business achieved a rapid growth of 46%. From the perspective of profit, 1) the gross profit margin is 34.1%, down about 1 percentage point year-on-year, which belongs to normal business fluctuation; 2) The ratio of sales / management / R & D / financial expenses decreased by 0.7%, 0.55%, 1.2% and 0.65% respectively, mainly due to the increase of R & D investment and the decrease of loans in the current period; 3) The share based payment expense is about 110 million yuan. If the share based payment and non recurring profit and loss are excluded, the profit level of the company is 470 million yuan, with a year-on-year increase of 22%.
Inventory and contract liabilities are favorable evidence of the high business prosperity of the company. The inventory was 1.14 billion, with a year-on-year increase of 270 million, of which the main increase was the contract performance cost, with an increase of 220 million yuan (these performance costs will be carried forward into operating costs with the revenue recognition of the project), and the contract liability was 670 million, with a year-on-year increase of 270 million, mainly due to the unfinished acceptance of integration and software development projects. The increase of inventory and contract liability verified the business prosperity of the company. With the gradual acceptance of the project, The company’s revenue and performance growth momentum is strong.
The R & D investment is increased, and the growth space can be expected. The company invested 440 million yuan in R & D, a year-on-year increase of 38.78%, accounting for 11.7% of revenue, the highest in recent three years. The R & D of the company mainly invested in the R & D of software development tools and standardized products, including low code development platform, data products, credit products, regulatory products, etc., which laid a good foundation for the subsequent improvement of development efficiency and the rise of profit margin. As a leading bank IT company, the company is expected to fully benefit from its industry position and rich product matrix and has a promising growth space in the future with the innovative development of national information technology application and the comprehensive promotion of digital transformation of the banking industry.
Risk tip: the demand of downstream customers is less than expected, and the industry competition intensifies.
Investment advice: maintain the “buy” rating.
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 582 / 732 / 914 million yuan, with a year-on-year growth rate of 47 / 25.8 / 24.9%; The current diluted share price is RMB 13.9/21, corresponding to EPS = 13.9/1.82/21. The company is a leading enterprise in the IT field of banks, with steady progress in traditional and innovative businesses and maintaining a “buy” rating.
