\u3000\u3 Shengda Resources Co.Ltd(000603) 927 Sinosoft Co.Ltd(603927) )
Insurance Xinchuang is the leader and maintains the “buy” rating
The company released its 2021 annual report, with a year-on-year increase of 8.65% in revenue and 21.15% in profit. The company is the leader of insurance Xinchuang. The self-developed core system has a high market share. Under the catalysis of policies, it is expected to usher in an accelerated development period. We maintain the profit forecast for 20222023 and newly added 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 760, 991 and 1260 million yuan, EPS will be 128, 1.67 and 2.12 yuan, and the corresponding PE of the current stock price will be 18.8, 14.4 and 11.3 times, maintaining the “buy” rating.
Event: the company released the annual report of 2021
(1) in 2021, the company realized a revenue of 6.281 billion yuan, an increase of 8.65% year-on-year; The net profit attributable to the parent company was 577 million yuan, a year-on-year increase of 21.15%. In terms of business, the company’s financial it revenue was 4.094 billion yuan, a year-on-year increase of 11.93%, of which the insurance it revenue was 3.503 billion yuan, a year-on-year increase of 18.64%. The company continued to maintain its leading position in the insurance it field. (2) In terms of profit margin, the company’s gross profit margin was 29.52% in 2021, with a year-on-year increase of 1.50 percentage points. The gross profit margin increased steadily. We judge that it is mainly due to the continuous increase in the proportion of the company’s software revenue and the continuous optimization of the revenue structure; The company’s sales and management expense rates were 4.99% and 1.27% respectively, down 0.03 and 0.11 percentage points respectively, and the expense rate continued to improve; The net interest rate was 9.19%, a year-on-year increase of 0.95 percentage points. Driven by the optimization of income structure and the pressure drop of expense rate, the profitability was further improved.
Insurance Xinchuang is the leader, ushering in a period of accelerated development
(1) broad space: the depth and density of China’s insurance are still at a low level, and the growth space of premium scale is broad, which drives the rapid growth of it informatization investment in the insurance industry. At the same time, under the trend of “insurance +”, the participation of Internet manufacturers and emerging technology companies also brings new demand for insurance it. According to CCID, the market scale of China’s Insurance IT solutions will reach 25.04 billion yuan in 2024, with broad space. (2) Policy catalysis: in January 2022, the China Banking and Insurance Regulatory Commission issued a document calling for “accelerating the construction of digital economy and comprehensively promoting the digital transformation of banking and insurance industry”, while clarifying the principle of “independent and controllable key technologies, reducing external dependence and avoiding single dependence”. Xinchuang is expected to improve the growth rate of insurance IT industry. As the leader of insurance Xinchuang, the core system independently developed by the company has a high market share. Under the catalysis of policies, the company is expected to usher in an accelerated development period.
Risk warning: policy promotion is not as expected; Insurance IT investment is less than expected.
