\u3000\u30 Shenzhen Fountain Corporation(000005) 55 Digital China Information Service Company Ltd(000555) )
Event: on March 30, the company released its annual report for 2021, achieving a revenue of 11.356 billion yuan, a year-on-year increase of 6.27%; The net profit attributable to the parent company was 376 million yuan, a year-on-year increase of – 20.92%; Net profit deducted from non parent company was 315 million yuan, with a year-on-year increase of 46.14%; The net operating cash flow was 372 million yuan, a year-on-year increase of 15.45%.
The business growth of the financial industry was consolidated, and the income structure continued to be optimized and concentrated. 1) In 2021, the revenue of financial industry business was 5.022 billion yuan, with a year-on-year increase of 18.4%, accounting for 44.23% of the company’s revenue, of which the revenue of software development and technical service business was 2.52 billion yuan, with a year-on-year increase of 26.7%, the gross profit margin was 27.14%, with a year-on-year increase of 0.21 percentage points, accounting for 50.18% of the revenue of financial industry business. The company’s financial technology sector reached a new high, reaching 5.925 billion yuan, a year-on-year increase of 10.4%. At present, the company’s financial software development and technical service business has sufficient orders on hand. The number of unsold contracts in 2021 was 1.38 billion yuan, an increase of 8.1% year-on-year, which will form a strong support for the growth of the company’s financial technology business. 2) The total business revenue of government enterprises and operators was 6.039 billion yuan, accounting for 53.18%. The company’s business structure continued to move closer to the strategic direction of financial technology.
The it demand of the financial industry continues to improve, and the company has three potential highlights. 1) Continue to build a distributed core business platform, continue to sign a new generation of distributed business system, and lead the implementation of the first generation of the bank’s core business system. 2) Financial information innovation continued to increase. By the end of 2021, the company’s information innovation business had signed 840 million yuan, and more than 20 benchmark cases in the financial information innovation industry had been added. In terms of information creation ecology, the company has jointly released information creation solutions for the financial industry with ecological partners such as Huawei, Tencent and Inspur. 3) The arrival of digital RMB is imminent, which is expected to bring greater increment. The company’s multi currency solution has been implemented in nearly 20 banks. In 2021, the company helped Beijing Dongcheng District Taxation Bureau successfully realize the city’s first digital RMB payment entrusted tax collection business. At the same time, the company actively explored the innovative application of digital RMB in prepaid cards, logistics, supply chain finance and other scenarios, and launched the pilot of “digital prepaid consumer service platform”.
Profit forecast: as the company will adjust its business strategy in the future, mainly develop the business of financial industry, shrink the business of government enterprises and operators, and the short-term revenue is under pressure, the company’s revenue forecast for 22-23 years will be lowered to RMB 12.182/13.415 billion, which is – 27.5% and – 31.0% compared with the previous forecast, and the new 24-year revenue forecast is RMB 14.863 billion; In addition, due to the disposal of subsidiaries by the company in 2020, the net profit base in 2020 is relatively distorted (there is a one-time non recurring profit and loss of + 260 million, which has a great impact on the fluctuation expectation of non recurring profit and loss in subsequent years, while the actual growth sustainability of deducting non net profit of the company is relatively stable and solid). The forecast of net profit attributable to the parent company from 22 to 23 years is adjusted to 453 / 566 million yuan, which is – 39.3% and – 37.4% higher than the previous forecast, The new 24-year net profit attributable to the parent company is predicted to be 705 million yuan; The EPS of 22-24 years was 0.46/0.58/0.72 yuan respectively, and the corresponding PE was 26x / 21x / 17x respectively. It is optimistic that the company’s distributed core system will continue to lead the market, financial innovation and digital RMB will bring incremental market space, and maintain the rating of “overweight”.
Risk tip: the promotion of Xinchuang is less than expected, and the landing of financial technology scenario application is less than expected.
