Core logic
Since mid-2020, the correction of the financial technology sector has entered the bottom. Since 2021, although the digital (distributed) transformation of banks is expected to bring phased catalysis to the digital currency, the sector has maintained a volatile trend and the valuation has fallen to a relatively low level. From the perspective of molecular plates, the valuation level (dynamic PE TTM):
The average value of bank it valuation range is 39x; Securities it (2B & 2C) has a high valuation level, with an average of 48x; Due to different business priorities of the company, the valuation of Pan payment varies greatly, with an average of 47x
The bank’s IT sector has clear valuation advantages and is the best variety for undervalued value reversal.
1. Inflection point logic: small and medium-sized market value + undervalued value + stable prosperity in 21-22 years. Bank it is the preferred variety in the current computer rotation market. The corresponding 22-year valuation of the head company is 17-31 times, 20-35 times the historical range, with large short-term elasticity and considerable space for some targets.
2. Industry logic: sound fundamentals are the foundation to support valuation repair. There are four business drivers in the next three years – 1) distributed core system iteration; 2) Deepening the pilot of financial information innovation; 3) Digital RMB transformation increment; 4) Digital transformation needs of large / small banks. At the same time, considering the excellent payment strength of downstream banks in 22 years compared with g-end and other b-end vertical classes, the boom is highly deterministic.
3. Catalytic logic: on January 4, 2022, the digital RMB (pilot version) app will be fully launched, taking this as the starting point until the Winter Olympic Games scene display in early February, which is a strong catalytic range for bank it (core beneficiary link). In addition, the new QR code regulations implemented on March 1, 2022 and the financial information innovation pilot plan formulated in Q1, 2022 will also add to the prosperity of the industry.
Investment suggestion: bank it focuses on Shenzhen Sunline Tech Co.Ltd(300348) , and other beneficiary manufacturers include Tansun Technology Co.Ltd(300872) , Digital China Information Service Company Ltd(000555) , Northking Information Technology Co.Ltd(002987) , Global Infotech Co.Ltd(300465) . In addition, financial equipment manufacturers will also usher in large-scale transformation opportunities, Urovo Technology Co.Ltd(300531) , Newland Digital Technology Co.Ltd(000997) , Xgd Inc(300130) , Lakala Payment Co.Ltd(300773) , Grg Banking Equipment Co.Ltd(002152) are expected to benefit. Long term bullish on securities it leaders Hundsun Technologies Inc(600570) , Hithink Royalflush Information Network Co.Ltd(300033) . In addition, China stock market news continued to benefit.
Risk tips: the impact of the epidemic on the Winter Olympic Games, the promotion of digital RMB is less than expected, and the maturity of domestic alternative technologies is less than expected.
