\u3000\u3 China Vanke Co.Ltd(000002) 152 Grg Banking Equipment Co.Ltd(002152) )
Key elements of the report:
The company issued its annual report for 2021. The total operating revenue was 6.782 billion yuan, a year-on-year increase of 5.79%; The net profit attributable to the parent company was 824 million yuan, a year-on-year increase of 17.68%; The non net profit deducted was 716 million yuan, a year-on-year increase of 22.57%.
Key investment points:
The growth rate of software business is bright and the operating efficiency is improved: 1) on the revenue side, from the perspective of products, the company’s financial intelligent equipment, urban intelligent equipment, software development and services, operation and maintenance services and other business income have changed by – 7.21% / 4.50% / 36.07% / 8.53% year-on-year respectively. The company continued to strengthen its software capability, and its main business gradually transformed from “hard” to “both soft and hard”. The software business has become the main driving force of revenue growth. In terms of regions, the company’s overseas business revenue increased by 17.12% year-on-year. It has received large orders for BBVA bank equipment in Mexico for four consecutive years. It has also made breakthroughs in network transformation, intelligent retail and other fields, and the internationalization process is accelerating. 2) On the cost side, the company’s gross profit margin for the whole year of 21 years was 39.15%, a slight decrease of 0.73 PCT year-on-year. 3) On the expense side, the company’s sales, management and financial expense rates decreased by 0.99/0.12/0.99pct year-on-year respectively, and the R & D expense rate increased by 1.29pct year-on-year. It shows that the company has achieved remarkable results in cost control while increasing R & D investment. 4) In terms of cash flow, the company realized a net operating cash flow of 1.591 billion yuan, a year-on-year increase of 30.25%, mainly due to the accelerated turnover of inventory and accounts receivable.
Deeply participate in the construction of digital RMB: the company assists in the formulation of relevant standards of digital RMB, and cuts into the technical research and development, scenario application and market development of digital RMB from different directions. The research and development directions include smart contract, digital RMB payment channel, bank digital RMB business system, digital RMB Hard Wallet and digital RMB opening equipment. It has developed the ability of full link construction of digital RMB scenario, Able to provide digital RMB integration solutions. By the end of the 21st century, the company had won the bid for the construction project of digital RMB business system of 6 banks, signed the strategic cooperation agreement on digital RMB ecological construction with China Construction Bank Corporation(601939) Hainan Branch of China, and implemented the digital RMB operation project in Hainan.
The core technology is independent and controllable, and the products fully meet the requirements of Xinchuang: in terms of financial Xinchuang, the company has accumulated a number of core technologies in the field of financial equipment. The core parts and key modules of terminal machines and tools are independently developed, which has outstanding advantages in Xinchuang market. In 2021, the company’s mainstream models became the first batch of Xinchuang products that passed the adaptation verification, and completed the pilot and put into operation in six major state-owned banks and several joint-stock banks. Ibank4, an omni channel business platform built by the company 0 products integrate self-service channels and counter channels, and realize the unified service management of offline channel business handling, operation, marketing, security and management. At present, the platform has realized all aspects of Xinchuang adaptation and independent control, and has been put into use in Industrial And Commercial Bank Of China Limited(601398) , Agricultural Bank Of China Limited(601288) , Guangdong Development Bank and other banks.
Seize the opportunity of digital economy and develop digital government and enterprise digital business: in 2021, the company won the bid for the “Sui Zhi Guan” operation service project of digital government operation center of Guangzhou Municipal Government Service Data Management Bureau with 130 million yuan; The replication capacity of the smart audit business industry has achieved initial results and gradually expanded nationwide. It has cooperated with Zhuhai Audit Bureau, Hangzhou audit bureau and other units; With the technical support of the company, Guangzhou government Xinchuang cloud has supported a number of government systems of many government units to go to the cloud. The application online scale is among the top three in China. The company has also become the first government Xinchuang cloud service provider based on independent and controllable lines in Guangzhou.
Profit forecast and investment suggestions: it is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 74.1080908769 billion respectively, and the net profit will be RMB 954/11.011253 million respectively. The corresponding closing price PE on April 1, 2022 will be 27.19/23.57/20.72 times respectively, maintaining the “overweight” rating.
Risk factors: macroeconomic fluctuation risk; The landing progress of digital currency is less than expected; Intensified market competition; Technology research and development is not as expected; Exchange rate fluctuation risk.
