\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Event overview
The company released its annual report for 2021. In 2021, the company realized an operating revenue of 3.726 billion yuan, a year-on-year increase of 24.97%; The net profit attributable to the shareholders of the listed company was 396 million yuan, a year-on-year decrease of 12.6%, mainly due to the high non recurring income such as the income from the disposal of associated enterprises in 2020. During the reporting period, the net profit attributable to the listed company after deducting non recurring profits and losses and excluding the impact of share based payment expenses was 469 million yuan, a year-on-year increase of 22.03%.
Analysis and judgment:
Bank it Zhongjun continues to benefit from the high prosperity of the industry and the strengthening of financial information innovation.
During the reporting period, benefiting from the relevant business needs of large commercial banks, the company's orders on hand increased by 26% year-on-year, and the software development business realized a revenue of 2.86 billion yuan, a year-on-year increase of 28.16%. 1) In terms of customers, orders from large state-owned banks and joint-stock banks increased by 33.42% and 28.35% year-on-year respectively, and the advantage of customer card position continued. 2) In terms of products, the company's data products have successively won the relevant projects of banks such as the provincial urban commercial bank with the largest registered capital in China and the largest rural commercial bank in China, which not only accumulated model projects, but also enriched the benchmark cases of the company in the field of financial information and innovation. The company's credit products continued to lead the industry, the number of new orders and contracts doubled, and tens of millions of orders surged. The market share of the company's regulated products remained the first. In addition, the company strengthened the accumulation of digital currency through in-depth cooperation with the three major state-owned banks. Under the background of "upward cycle of track prosperity + accelerated promotion of domestic substitution + digital currency", the company will continue to benefit from the high prosperity of the industry.
Innovative business and overseas business are growing rapidly and are expected to become a new growth pole.
Since its launch in 2017, the company's innovative business has maintained high gross profit and continued to grow rapidly. In 2021, the revenue reached 146 million yuan, with a year-on-year increase of 46.5%, mainly due to the continued healthy growth of digital retail business in the financial industry. The multi module development of the company's innovative business helped the company to undertake more customer needs and scene integration. Although the gross profit margin of the innovative business decreased slightly by 2pct compared with the same period last year, it still maintained a high gross profit of 75%. Specifically, 1) the financial ecological platform jointly operated by the company and customers has added a foreign bank and a large state-owned bank customer, and two new customers have been successfully launched and started business trial operation. 2) The company's digital credit and digital marketing operations signed three new bank customers respectively. 3) Yuxin financial cloud signed two new consumer finance companies and two insurance companies.
Overseas market revenue increased by 224% year-on-year, and traditional business and innovative business went hand in hand. 1) The two innovative businesses in Indonesia made steady progress to verify the overseas market potential of the company's innovative business: the first customer launched in the second quarter of 2021 is progressing smoothly, and the project has been officially launched to the whole market in mid January 2022; The second project is expected to be launched in the first quarter of 2022. 2) The company's traditional business has made good progress in Singapore, Indonesia, Malaysia and Cambodia, and the pilot implementation of network transformation products, channel products, data products and Devops products continues. 3) The company actively promoted the implementation of and ecological partners in overseas markets, continued to integrate resources with Huawei, Tencent, NTT data, overseas Chinese Bank of Singapore and other partners, and exported the advanced products and services accumulated by the company in the Chinese market to the Southeast Asian market.
Self research + cooperation to lay technological advantages and continue to promote the construction of financial information innovation ecology.
The company continues to increase R & D investment, stabilize its leading position in the industry, and the R & D expenses and R & D expense rate are rising. During the reporting period, the company's product families have completed more than 100 credit innovation product adaptation certification, and helped dozens of customers complete the second batch of financial credit innovation scheme declaration. At present, the company's four completely self-developed technical tool products have been put into operation in several joint-stock banks and completed domestic replacement. On the basis of adhering to the self-developed core platform, the company also carried out extensive technical cooperation to speed up the integration of domestic alternative software. During the reporting period, the company continued to deepen its cooperation with ecological partners such as Huawei, Tencent, Baidu and various head database manufacturers, and launched a number of joint solutions with them in markets outside China. The company has signed more than 10 new partners, covering many strategic emerging technology fields such as artificial intelligence and privacy computing, and has moved from strategic cooperation to the cooperation of specific projects
Investment advice
Based on the judgment of industrial policies and the promotion of various businesses of the company, we adjusted the profit forecast. We expect the company to achieve operating revenue of RMB 4.776 billion, RMB 6.159 billion and RMB 7.994 billion respectively from 2022 to 2024 (the original forecast revenue of 22-23 years was RMB 5.48 billion / RMB 7.49 billion respectively), with a year-on-year increase of 28.2%, 29% and 29.8% (the original forecast revenue of 22-23 years yoy + 30.1% / 31.2%); The net profit attributable to the parent company was 550 million yuan, 653 million yuan and 827 million yuan (the original forecast was 790 million yuan / 1.08 billion yuan in 22-23 years), with a year-on-year increase of 39%, 18.7% and 26.5% (the original forecast was 22-23 years yoy + 35.0% / 36.1%); From 2022 to 2024, EPS is 0.83 yuan, 0.99 yuan and 1.25 yuan respectively. Taking the closing price of 17.9 yuan on March 30, 2022 as the reference, the corresponding PE is 21.51x, 18.11x and 14.32x respectively. The company is a leading manufacturer (top 2) in the IT field of banks. With strong card position advantages (customer barriers) and product technology advantages based on self-research / cooperation, the company is expected to fully enjoy the dividend of industry expansion. In addition, the company's innovative business and overseas business are gradually expanding, which is expected to become a new revenue growth pole. We continue to be optimistic about the development prospects of the company and maintain the "buy" rating.
Risk tips
The risk of intensified industry competition, the risk of higher than expected fluctuation of IT investment budget of downstream banks, the risk of less than expected promotion of innovative business, the risk of less than expected business expansion in Southeast Asia market, and the risk of less than expected project development caused by repeated epidemics.
