Huaxin Yongdao (837592)
Company events: the company released its annual report for 2021. The company’s operating revenue in 2021 was 233 million yuan, a year-on-year increase of 30.57%; The net profit attributable to the parent company was 351705 million yuan, turning losses into profits.
The improvement of the epidemic situation has brought the project delivery back to normal, with a net profit of 351705 million yuan in 2021. The company’s main business activities are information system related software customization and development, system integration services, system operation and maintenance technical support, service outsourcing and operation. It is a leading enterprise in the software field of the housing provident fund industry. In 2021, the company developed smoothly in software customization development, maintenance service and outsourcing service business, and the revenue of third-party product sales and integration business decreased slightly. ① In terms of software customization development, on the basis of selling products with independent intellectual property rights, the company provides customized development according to the needs of end users. In 2021, the revenue of software customization development increased by 45%, reaching 161 million yuan, and the gross profit margin increased significantly to 51%. ② In terms of maintenance services, the company provides later maintenance for all network infrastructure and software required by customers to build informatization. In 2021, the maintenance service revenue increased by 15%, reaching RMB 400537 million, and the gross profit margin increased to 49%. ③ In terms of third-party product sales and integration, the company signed a purchase contract with the supplier according to the product configuration, quantity and model in the sales contract, and the supplier directly supplied it to the end user. In 2021, the revenue from third-party product sales and integration decreased by 11% to 193586 million yuan, and the gross profit margin increased to 28%. ④ In terms of outsourcing services, the company adopts b2g2c mode to provide offline business services for government customers to the public, and provides customers with information technology + services, online + offline complete service solutions. In 2021, the outsourcing service revenue increased by 19.14%, reaching RMB 126426 million, and the gross profit rate increased to 20%. With the gradual improvement of the epidemic situation in China, the final acceptance of the company’s contracted projects in 2020 returned to normal, and the implementation progress of project acceptance and delivery in 2021 was accelerated. In 2021, the operating revenue was 233 million yuan, a year-on-year increase of 30.57%.
The revenue of software customized development services reached 161 million yuan in 2021, accounting for nearly 70% of the total revenue: the company provides information system related software customized development services for customers such as governments, housing construction systems, housing provident fund centers, regulatory authorities and banks all over the country, and ranks first in the market share of high-end customers (large and medium-sized cities) in the housing provident fund industry. The company has a wide range of customers, with more than 100 customers, covering more than 20 provinces, autonomous regions and municipalities directly under the central government. In 2021, the company continued to develop new products and models: ① the new generation core business system of Yulin housing provident fund management center in January 2021 and the new generation core business system of Huai’an housing provident fund management center in June 2021 were successfully launched respectively, which marks the successful implementation of the company’s financial level distributed architecture, medium platform and micro service architecture, data-driven and other technologies in the industry. In order to maintain the industry leadership Innovative solutions have laid a solid foundation. ② Using blockchain, cloud video, electronic signature and other technologies, as well as professional business solutions, the company helped the country’s first housing provident fund loan “don’t meet” (including commercial bank portfolio loan) system to be officially put into operation at the housing provident fund management center in Quzhou City, Zhejiang Province on June 22, 2021. At the same time, it led more than 10 banks such as industry, agriculture, China and construction to realize the digital reform of “video face-to-face signing” of loans. In addition, the rich customer resources and software development technology ahead of the same industry helped the company further improve its operating revenue. With the return of project delivery to normal, the revenue of software customized development services increased by 45% year-on-year in 2021.
Investment suggestion: the company actively participated in bank government cooperation and innovated the products and service mode of housing finance business. In 2021, the company had 5 invention patents and invested more than 17 million yuan in R & D. the company continued to consolidate the leading position in the field of informatization and service of government customers, especially in the field of housing provident fund. In addition, on January 19, 2022, the company signed the guidance agreement on listing on Beijing stock exchange with Northeast Securities Co.Ltd(000686) and submitted the guidance filing application to Beijing Securities Regulatory Bureau, which confirmed the filing on January 21. The company has strong customer stickiness and stable industry status. It is recommended to pay attention to it.
Risk tips: the risk of loss of core technicians and the risk of changes in preferential tax policies
