\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
Event: the company released its annual report for 2021, and the company achieved an operating revenue of 5.497 billion yuan, a year-on-year increase of 31.73%; The net profit was rmb2.903 billion, a year-on-year increase of rmb2.903 billion. The performance is in line with market expectations.
Key investment points
Big retail it and big asset management IT business grew rapidly, and staff salaries increased to improve the expense rate: by business, the revenue of big retail IT business was 2.111 billion yuan, a year-on-year increase of 39.79%; The revenue of it business of large asset management was 1.708 billion yuan, a year-on-year increase of 39.84%; Data risk and infrastructure IT business revenue of 354 million yuan; A year-on-year decrease of 2.54%; The revenue of Internet innovation business was 804 million yuan, a year-on-year increase of 33.69%. Large retail it and large asset management IT businesses are still the main sources of revenue of the company. The total revenue accounted for 69% in 2021, benefiting from the landing of new products and the prosperity of downstream demand. The revenue growth of these two businesses is bright and is an important engine for the overall revenue growth of the company. In 2021, the company’s sales / management / R & D expense rates were 10.15% / 12.40% / 38.92% respectively. The increase in sales and R & D expense rates was mainly due to the company’s market development, emphasis on R & D, and the increase in personnel and salary.
Attach importance to R & D and lead the industry in product technology: in 2021, Hang Seng UF3 0, o45 and other core products have all completed the upgrading of cloud native technology, and have been officially launched in key customers such as Huabao fund, China Merchants Securities Co.Ltd(600999) and so on. In terms of technology upgrading, the light technology platform continues to deepen and strengthen, and has released a series of new technology products, such as the relational database lightdb supporting the financial information and innovation business scenario, and the cloud native base lightcore supporting the full deployment of business systems to the cloud. The performance of Hang Seng products has been continuously improved and the product matrix has been continuously improved to help customers upgrade their business.
M & A and investment open up market space: in terms of business, in 2021, Hang Seng acquired finastra’s fund management system summit and opics related businesses and intellectual property rights, entered the field of bank fund management system and began subscription charging. In the international market, in 2021, Hang Seng acquired Malaysia n2nconnect23 through its holding subsidiary Hengyun holdings 66% of the shares, layout of the Southeast Asian market. On the product matrix, in 2021, the company controlled Danwo intelligence through capital increase, further supplementing the intelligent investment and research product line.
China’s financial market reform is an important driving force for Hang Seng’s development: in 2021, the capital market reform continued to expand and deepen, the main board and small and medium-sized board of Shenzhen stock exchange were merged, and the first nine public infrastructure REITs of Shanghai and Shenzhen stock exchange were officially listed and traded. In 2022, the comprehensive registration system is expected to be realized, and the carbon trading market is expected to usher in accelerated development. Hundsun Technologies Inc(600570) as a financial IT giant, will fully benefit from the wave of information system construction and transformation brought about by China’s financial market reform.
Profit forecast and investment rating: Hundsun Technologies Inc(600570) product technology is leading in the industry, and the market space is gradually opened. With the promotion of China’s financial market reform, the company is expected to usher in a period of rapid development. Considering the rising cost of the company, we lowered the net profit attributable to the parent company from 2022 to 2023 to RMB 1.697 (- 3.28) / 1.953 (- 598) billion, and expected the net profit attributable to the parent company in 2024 to RMB 2.238 billion, maintaining the “buy” rating.
Risk warning: the credit innovation policy is not as expected; Risk of aggravation of the epidemic; The progress of product research and development is less than expected.
