\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
The company released its annual report for 2021, with annual revenue of 5.497 billion yuan (+ 31.73%) and net profit attributable to parent company of 1.464 billion yuan (+ 10.73%). High performance growth, long-term technological leadership, continuous expansion of product boundaries, and deep participation in financial digital transformation. Maintain buy rating.
Key points supporting rating
The financial innovation policy has significantly catalyzed the growth of large retail and large asset management IT business. Q4 achieved RMB 2.376 billion (+ 29.50%) and net profit of RMB 786 million (- 13.94%) in a single quarter, and deducted non net profit of RMB 947 million (+ 29.03%) in the whole year. The rapid growth of performance is mainly due to the impact of financial innovation policies, and the asset impairment loss during the reporting period decreased by 227 million yuan compared with the previous year. Among them, the growth rate of core business is bright, and the revenue of large retail and large asset management IT business is RMB 2.111/1.706 billion respectively, with a year-on-year increase of 39.79% / 39.84%, accounting for 38% / 31% of the revenue.
R & D investment remains the leading industry, and the product boundary continues to expand. In the 21st year, the operating cost was 1.485 billion yuan (+ 55.31%), and the gross profit margin decreased by 4.09pct to 72.98% year-on-year due to the increase of personnel costs. The R & D investment is 2.139 billion yuan (+ 43%), accounting for 38.92% of the revenue. The R & D investment and the number of personnel are at the leading level in the industry. Perfect the fund management system of the bank and the fund management system of the company in the reporting period. Core products UF3, o45 and valuation 6. The new generation TA has completed the upgrading of cloud native technology and launched online. The light technology platform continues to be deeper and stronger, the product boundary continues to be widened, and fully and deeply participates in the financial digital transformation.
The breakthrough product o45 was successfully launched to meet the digital transformation of asset management. At the end of 21, the company’s new generation asset management system o45 was officially launched in Huabao fund, marking a major breakthrough in the digital transformation of asset management industry. O45 supports all products and businesses, covers domestic and foreign transaction varieties, and integrates the instruction, transaction, risk control and clearing of domestic and foreign assets. Other core products are landing one after another, which is expected to drive faster growth of performance in the follow-up.
Valuation
It is estimated that the net profit from 2022 to 2024 will be 1.84 billion yuan, 2.27 billion yuan and 2.73 billion yuan, and the EPS will be 1.26, 1.55 and 1.87 yuan (considering the performance and possible run of digital financial investment in 2021, it will be revised down by 2 ~ 3%), and the corresponding PE will be 35x, 29x and 24x respectively. The valuation level is low and the buy rating will be maintained.
Main risks of rating
Volatility of financial market scene; The progress of financial digitization is less than expected.
