Recently, the digital currency industry welcomed the launch of the pilot app and the document support issued by the state office. Yunnan Nantian Electronics Information Co.Ltd(000948) as a leading state-owned financial IT enterprise, it adds a development booster to the “financial technology + industry digitization” strategy, and has additional advantages in cross-border and RCEP. It is recommended to pay attention to it.
Digital RMB welcomes the dual catalysis of industry and policy. According to the financial report of China Central Television, the digital RMB (pilot version) app has been officially launched in major application markets, and 49 platforms such as jd.com, meituan, tmall.com and didi have been connected to the digital RMB system. The State Council Office issued the overall plan for the pilot of comprehensive reform of market-oriented allocation of factors to support the pilot use of digital RMB in retail transactions, living expenses, government services and other scenarios. The digital currency track has ushered in a number of substantive progress.
Yunnan Nantian Electronics Information Co.Ltd(000948) has the traditional advantages of financial technology and benefits from digital RMB at home and abroad. Yunnan Nantian Electronics Information Co.Ltd(000948) is a leading enterprise in the IT field of traditional banks, ranking No. 4 in the financial IT software and service market (CCID data). In 2020, the revenue will exceed 4.2 billion yuan, with obvious advantages in the customers of large banks and financial institutions.
(1) the company participated in the construction of digital currency application in several large state-owned banks. Previously, one of the company’s service customers China Everbright Bank Company Limited Co.Ltd(601818) undertook 90% of the wechat wallet life payment service, and life payment is the application scenario encouraged this time.
(2) in terms of cross-border application scenarios, as the main information technology listing platform under Yunnan SASAC, the company actively explores cross-border applications in neighboring countries such as Myanmar, Laos and Vietnam, and benefits from the effective implementation of RCEP. From the perspective of the development prospect of digital currency, domestic business will become the short-term driving force of the company’s corresponding sectors, and cross-border business will build the company’s long-term advantages and even create a new multi currency business model with United Bank.
Equity incentive has been implemented, and state-owned enterprises are full of vitality. Encouraged by policies such as science and technology reform, the new phase of equity incentive scheme recently launched by the company has been approved by SASAC. According to the draft, the company level performance assessment target is that the revenue from 2022 to 2024 will not be less than RMB 4.8 billion, RMB 5.3 billion and RMB 6 billion (and not less than the industry), and the net profit attributable to the parent company in the same period will not be less than 80%, 110% and 140% higher than the average value from 2018 to 2020 (about 76.31 million), with roe and Δ EVA and other objectives. The restricted shares granted this time shall not exceed 3.5% of the total share capital, covering 300 senior executives and core backbones. The high-speed growth target reflects that the management is optimistic about the development prospect of the company, which in turn promotes the enthusiasm of employees.
The IT business of dual energy companies has been significantly boosted. Another key business of the company in the near future is digital energy. The company has undertaken to build the “online monitoring platform for energy consumption of key energy users in Yunnan Province”, which has filled the short board of energy measurement and carbon measurement technology in Yunnan Province. As the basis of carbon trading and double carbon goals, carbon measurement will rapidly show the demand for construction and services in the future.
Industry informatization and SaaS innovation business are progressing rapidly. The company actively explores innovative business outside the traditional financial IT field. Smart Education (Star cube), smart party construction (honglingyun), smart cloud operation and maintenance and other fields have developed well. The docking bank’s life payment, smart party construction and other businesses also have SaaS business model, which is expected to contribute to the continuous performance improvement of the company.
Investment suggestion: marked by equity incentive, Yunnan Nantian Electronics Information Co.Ltd(000948) benefits from the logic of vitality reappearance of leading state-owned enterprises: (1) the recent driving forces are financial technology and dual carbon smart energy; (2) The later driving force is the digitization of industries such as smart education, smart party construction and cloud operation and maintenance. Referring to the equity incentive target, the net profit in 2022 is about 140 million; The corresponding PE is about 39x, which is 67% lower than the median valuation (about 65x) of the computer industry in recent two years. It is recommended to pay attention.
Risk tip: the demand for bank IT hardware products is declining; The implementation of the policy was less than expected.
