\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 48 Shenzhen Sunline Tech Co.Ltd(300348) )
Event:
The company issued the 2021 annual report after the closing on April 14, 2022.
Comments:
The main business was carried out continuously and stably, and the business of the bank was steadily promoted
In 2021, the company’s main businesses were carried out continuously and stably, realizing an operating revenue of 1.572 billion yuan, a year-on-year increase of 1.37%; The net profit attributable to the parent company was 126 million yuan, a year-on-year decrease of 46.73%. From the perspective of products, the amount of sales contracts signed by the company’s digital financial business solutions increased steadily in 2021, with a year-on-year increase of about 17%; The amount of sales contracts signed for big data application system solutions increased by more than 26% year-on-year; The sales contract of technical services based on products and solutions increased by more than 200% year-on-year (the data of the same period last year does not include the data of Changliang Baotai sales contract). In terms of expenses, the rates of sales, management and R & D expenses of the company are 8.35%, 14.99% and 8.54% respectively. The company has continued to strengthen cooperation with China’s major banks, and has cooperated with 3 policy banks, 8 of 6 large state-owned commercial banks and all national joint-stock banks; Cooperate with Postal Savings Bank Of China Co.Ltd(601658) , Bank Of China Limited(601988) , Bank Of Communications Co.Ltd(601328) , China Citic Bank Corporation Limited(601998) , Ping An Bank Co.Ltd(000001) , and other large financial institutions in the field of financial information and innovation.
The big data business line is growing rapidly, and the gross profit margin is expected to be improved
In 2021, the company’s big data application system solutions achieved a revenue of 536 million yuan, a year-on-year increase of 36.75% and a gross profit margin of 39.73%. By the end of 2021, the company’s big data business line has achieved 100% coverage of policy banks, 83% coverage of state-owned banks, 92% coverage of joint-stock banks, 89% coverage of urban commercial banks with assets of more than 500 billion and 71% coverage of rural commercial banks with assets of more than 500 billion. It has comprehensively broadened and deepened its cooperation with many state-owned banks, joint-stock banks, urban commercial banks with assets of more than 500 billion, rural commercial banks, securities companies and other customers. In 2022, the company plans to improve the input-output ratio of human resources through a series of measures to improve the gross profit margin of big data business.
The overseas business is profitable as a whole, and the business development trend continues to be good
In 2021, the company’s overseas business revenue reached 162 million yuan, a year-on-year increase of 65%; The sales contract amount of overseas business increased by more than 95% year-on-year, and achieved phased results of overseas development strategy. The company has made breakthroughs in the top five major banks in major Southeast Asian countries such as Thailand, Malaysia and Indonesia. The average bid winning rate of ICORE core system in Southeast Asian market is more than 25%, beating overseas competitors one after another, which fully verifies the strong competitiveness of the company’s products. In 2021, the company successively won the bid of CIMB Philippine bank, Thailand SCB bank, Malaysia SCC bank, China Citic Bank Corporation Limited(601998) (Hong Kong), Shanghai Pudong Development Bank (Hong Kong), Indonesia BNC bank and other projects.
Profit forecast and investment suggestions
As a pioneer in the field of Global Digital Banking, the company continues to increase R & D investment, has obvious advantages in products, and gradually opens up large state-owned banks and overseas markets. It is predicted that the operating revenue of the company from 2022 to 2024 will be RMB 1939, 2347 and 2795 million, the net profit attributable to the parent company will be RMB 204, 276 and 350 million, the EPS will be RMB 0.28, 0.38 and 0.49/share, and the corresponding PE will be 39.66, 29.21 and 23.06 times. At present, the PE TTM of the computer (Shenwan) index is 40.1 times. In the past three years, the PE of the company has mainly operated between 40-120 times. It is expected that the net profit attributable to the parent company in the next three years will be 40.53%, giving the company 60 times the target PE in 2022, and the corresponding target price is 16.80 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The implementation of the credit innovation policy in the financial industry was not as expected; The business expansion of the bank’s core system is less than expected; Overseas market development is less than expected; Market competition intensifies.
