\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Key investment points
Investment Event: the company released the annual report of 2021: the operating revenue was 3.726 billion yuan, a year-on-year increase of 24.97%; The net profit attributable to the parent company was 396 million yuan, a year-on-year decrease of 12.60%; Net profit deducted from non parent company was 362 million yuan, with a year-on-year increase of 22.53%; The net profit attributable to listed companies after deducting non recurring profits and losses and excluding the impact of share based payment expenses was 469 million yuan, an increase of 22.03% over the same period of last year.
The software business has maintained rapid growth and highlighted its competitive advantage in the market. The company’s software development service revenue increased by 28.16% year-on-year, and the on-hand orders of software development business increased by 26% year-on-year. From the perspective of customers, the cooperation between the company and large and medium-sized banks has been deepening, in which the income from large state-owned commercial banks increased by 33.42% and the income from joint-stock banks increased by 28.35%. In terms of products, the benchmark cases of the company’s data product line, credit product line, regulatory platform product line and channel product line have been continuously implemented, and the strategic layout of new products has been steadily implemented. The company’s products are increasingly recognized by customers, and the competitive advantage of products continues to highlight.
Innovate operation business, expand new products and usher in more business opportunities. The company’s innovative operation business realized a revenue of 164 million yuan, a year-on-year increase of 46.49%. Significant progress has been made in the realization of products in all lines, including two new customers of the financial ecological platform, which has been put into trial operation; Digital credit has further expanded to inclusive financial digital credit business for small, medium-sized and micro enterprises, and has successfully signed contracts with three urban commercial banks; Digital marketing operation signed three new bank customers; The cooperative technology operation mode with financial cloud services as the carrier will also become an important direction of the company’s transformation. With the rich business scenarios, innovative operation business will usher in more opportunities.
Strengthen R & D investment and refinance to further consolidate technical and business competitiveness. In 2021, the company invested 435 million yuan in R & D, a year-on-year increase of 38.72%, accounting for 1.67% of revenue. At the beginning of 2022, the company raised about 115 million refinancing funds. The company will use the raised funds to continue to invest in product and technology research and development, and continue to iterate on distributed and micro service architecture technologies and platforms to enhance the competitiveness of the industry; Continue to invest talents in innovative business operations, attract and improve business operation capacity, exert the second growth engine and shape a new growth curve.
Investment suggestion: benefiting from the development strategy of the national information technology application innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) and the comprehensive promotion of the digital transformation of the banking industry, the demand of the financial technology market has further heated up. As one of the industry leaders, the company continues to increase R & D investment with its all-round ability, and will further establish obvious advantages in the future. Based on this, we adjusted the revenue and profit forecast of the company in 2022 / 2023 and newly added 2024. It is estimated that the total revenue of the company from 2022 to 2024 will be 4.672/57.83/7.044 billion yuan respectively (the value before 2022 and 2023 is 4.595/5.567 billion yuan), the net profit attributable to the parent company will be 5.33/7.02/878 billion yuan respectively (the value before 2022 and 2023 is 5.39/701 million yuan), the EPS will be 0.75/0.99/1.23 yuan respectively, and the corresponding PE will be 25 / 19 / 15 times respectively, Maintain the “buy” rating.
Risk tip: the regulatory policy has changed, the pressure of talent competition has intensified, and the expansion of new business is less than expected
