\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
Key elements of the report:
The company issued its annual report for 2021. In 2021, the company achieved an operating 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%.
Revenue grew rapidly and the implementation of new products was progressing smoothly: Quarterly, the company achieved an operating revenue of 2.376 billion yuan in Q4, a year-on-year increase of 29.5%. The company’s revenue growth base has been lower than that of Q3 in the same period of 2020, and the company’s revenue has been higher than that of Q3 in the same period of this year. In terms of business, the company’s top two main businesses, large retail IT business and large asset management IT business, achieved operating revenue of 2.111 billion yuan and 1.706 billion yuan respectively, with growth rates of 39.79% and 39.84% respectively. Among them, the product lines of large retail business, such as wealth Zhongtai, financial sales and investment consulting business, as well as the product lines of large asset management business, such as investment transaction management, valuation and asset management operation platform, have achieved good growth. Internet innovation business also achieved a revenue growth rate of 33.69%, and data services, data terminal applications, data middle office, intelligent investment and research and other businesses have achieved rapid growth. In terms of new products, the company’s asset management o45 product has also achieved the first formal launch of customers in the fund industry, with a valuation of 6.0. While securities, banks, trusts and funds have obtained a number of cooperative customers, online cases are also increasing.
During the promotion period of new products, the number of personnel increased rapidly, resulting in short-term pressure on costs and cash flow: the gross profit margin of the company in 21 years was 72.98%, a year-on-year decrease of 4.09pct; Sales, management and R & D expenses were 558 / 681 / 2139 million yuan respectively, with a year-on-year increase of 57.69% / 26.31% / 43% respectively. The main reason for the substantial increase of the company’s costs is that the company is currently in the introduction period of new products and fails to reach the plug and play state of mature products, which requires more implementation personnel to carry out customized development to a certain extent. In terms of improving customer satisfaction, the company has made more personnel investment, with a year-on-year increase of 36.67% in the number of employees, including 50.62% to 8659 technicians. Therefore, it also led to the situation that the growth rate of the company’s salary expenditure exceeded the growth rate of cash inflow, which reduced the operating cash flow by 31.56% year-on-year.
Develop both endogenous and extension, and improve the company’s technology and product layout: in terms of internal technology R & D, the company’s R & D investment remains the industry leader, and the R & D expense rate reaches 38.92%. Under the vigorous technology research and development, the core products UF3, o45, valuation 6 and the new generation TA have all completed the upgrading of cloud native technology, and are also officially launched in key customers. 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 creation business scenario, the cloud native base lightcore supporting the full implementation of business systems in the cloud, etc. at the same time, it has also actively participated in the technological innovation in the fields of information creation database, high performance, artificial intelligence and so on. In terms of extension mergers and acquisitions, the company acquired summit, the head manufacturer of fund management system under finastra in 21 years, helping the company quickly enter the field of fund management system of medium and large banks; Business integration with the holding subsidiary Yunying network has improved the company’s layout in the field of bank capital trading system.
Profit forecast and investment suggestions: it is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 6.766/85.52/9.859 billion respectively, and the net profit will be RMB 1.606/19.99/2.448 billion respectively, corresponding to the closing price of PE on April 1, 2022, which is 39.16/31.45/25.68 times respectively, maintaining the “overweight” rating.
Risk factors: the risk of excessive personnel growth; M & A integration risk; Intensified market competition; Technology research and development is not as expected; The capital market scene was less generous than expected.
