I. what profit models can “technology + finance” have? What are the listed companies?
Definition of “technology + finance” listed company: a company that involves both technology (including Internet, it technology, etc.) and finance.
We sorted out the representative “technology + finance” listed companies of a shares, which are divided into the following three types according to the main profit models:
1) use Internet financial platform / technology to improve overall efficiency and obtain income through financial license (such as securities business income and fund consignment business income, etc.), typical representatives such as China stock market news; 2) Provide Internet financial information services to obtain income (value-added business services and advertising business income), typical representatives such as Hithink Royalflush Information Network Co.Ltd(300033) ; 3) Carry out system and software development, and earn income by selling systems and software to financial institutions, typical representatives such as Hundsun Technologies Inc(600570) .
II. What are the main factors affecting the stock price of “technology + finance” listed companies? What are the possible policy implications?
We believe that the factors affecting “technology + finance” listed companies mainly include policy supervision, market activity and the company’s own growth, among which policy is the most important factor. We have sorted out three types of regulatory policy directions corresponding to its profit model:
1) the licensed business shall be strictly included in the financial supervision: Although the company with technology addition is different from the traditional financial institutions in mechanism or business flexibility, it is still a financial business in essence, which shall be strictly included in the supervision system and comply with the same business supervision requirements as financial institutions. 2) For companies with realized information, standardize the cooperative exhibition activities between network platforms and financial institutions: financial institutions may rent third-party network platforms for online exhibition, and the Internet platform has also become a place for financial institutions to market financial products. The Internet not only improves the efficiency, but also amplifies the risks. The risks such as sales misleading that may be hidden in marketing need to be standardized. 3) For companies that realize it technology, network information security supervision: network security includes two aspects: data security and personal information security. Such “technology + finance” companies master a large amount of financial information and data, and the importance of “stability” and “security” is particularly prominent. They will also become an important promoter of infrastructure construction in the new economic system, and the policies related to network information security will become the focus of attention.
III. investment suggestions: how to invest in “technology + finance” listed companies?
We believe that “technology + finance” companies have both strong financial regulatory attributes and high growth of the Internet. We consider the target from the following three perspectives:
The impact and characteristics of the policy: 1) since the companies realized by license are originally licensed, the business innovation is limited to a certain extent within the more strict regulatory system, but the policy risk is relatively the lowest; 2) Companies realized by information have strong innovation ability, large performance flexibility, and there is a certain risk of policy supervision fluctuation; 3) The company realized by IT technology is relatively stable. As a part of the bottom construction of the digital economy, it may focus on policy changes in the field of network security in the future.
From the perspective of company fundamentals, the advantages of subdivided leaders are obvious: 1) among the companies realized with licenses, the companies with Internet / technology genes are better than traditional financial institutions. The pattern established through first mover advantage + traffic advantage is not easy to shake, and the leaders will continue to form positive feedback; 2) Companies realized through information have strong data / information processing ability, and their products and user experience are gradually updated, iterated and upgraded in the process of increasing the scale, with more obvious leading advantages; 3) For companies realized through it technology, the competitiveness of the company comes from the technical team. Facing customers, financial institutions put forward higher requirements for the security and stability of IT technology, with strong comprehensive strength and outstanding advantages.
The common points of “science and technology + finance” leading companies: 1) they have first mover advantage and scale effect; 2) High moat (community, products, technology, etc.); 3) A strong man is always strong.
Investment suggestion: China stock market news, the leader of each sub segment, is recommended to pay attention to Hithink Royalflush Information Network Co.Ltd(300033) , Hundsun Technologies Inc(600570) : 1) China stock market news: the benchmark of Internet securities companies, high traffic + low cost + excellent service to build core competitiveness. Retail securities and fund consignment business continued to show high growth and became the leader of retail wealth management; 2) Hithink Royalflush Information Network Co.Ltd(300033) : massive accumulation of investors and users, head channel of flow realization, leading financial information service, AI technology enabling continuous improvement of product power, diversified business layout, and looking forward to the pan financial and wealth management comprehensive platform.; 3) Hundsun Technologies Inc(600570) : the financial IT industry is the Changpo thick snow track, Hundsun Technologies Inc(600570) has a superior pattern, is the champion of the financial it track, and will continue to benefit from the steady development dividend of the financial industry.
IV. risk warning
Policy supervision risk; Macroeconomic risks; Risk of declining market activity; Market systemic risk.
