\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
China’s financial it leader maintained the “buy” rating
The company released its 2021 annual report, realizing a revenue of 5.497 billion yuan, a year-on-year increase of 31.73%. As a financial it leader, the company is expected to enter an accelerated growth period under the resonance of policies, technologies, products and other factors. We raised the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 1.892 billion, RMB 2.451 billion and RMB 3.175 billion respectively (originally RMB 1.890 billion and RMB 2.391 billion), EPS will be RMB 129 million, RMB 1.68 million and RMB 2.17, and the PE corresponding to the current share price in 20222024 will be 36.0, 27.8 and 21.5 times, maintaining the “buy” rating.
Event: the company released its 2021 Annual Report
In 2021, the company achieved a revenue of 5.497 billion yuan, a year-on-year increase of 31.73%; The net profit attributable to the parent company was 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%. In terms of business, the revenue of large retail it and large asset management it was 2.111 billion yuan and 1.706 billion yuan respectively, with a year-on-year increase of 39.79% and 39.84% respectively, accounting for 38% and 31% of the total revenue respectively; The overall gross profit margin of the company was 72.98%, down 4.09 percentage points year-on-year, mainly due to the increase of labor cost; In terms of expense rate, the company’s sales and management expense rates were 10.15% and 12.40% respectively. The sales expense rate increased by 1.67 percentage points and the management expense rate decreased by 0.53 percentage points.
Multi factor resonance, the company entered a period of accelerated growth
According to the disclosure of the company’s annual report, based on the prospect of the market and regulatory policies in 2022, the company’s main revenue budget in 2022 increased by 25% year-on-year, the highest in recent five years. At the industry level, China’s capital market reform continues to expand and deepen, and market reforms such as the comprehensive registration system, the Beijing stock exchange, and the merger of the main board and the small and medium-sized board continue to bring new IT system construction needs; Driven by policies, financial information innovation is expected to accelerate in 2022, and it investment of securities companies is expected to accelerate. At the company level, new products such as o45, valuation 6.0, Ta, financial sales and investment advisory products have been successfully promoted, and more than 30 business systems have completed the Xinchuang adaptation test; At the same time, the company actively invests in mergers and acquisitions abroad, improves business layout and promotes internationalization strategy. As China’s financial it leader, the company has significant technical and customer advantages and complete product lines. Under the resonance of policies, technologies, products and other factors, the company is expected to enter an accelerated growth period.
Risk warning: product promotion is not as expected; Securities it investment was less than expected.
