\u3000\u3 Shengda Resources Co.Ltd(000603) 927 Sinosoft Co.Ltd(603927) )
Insurance Xinchuang is the leader and maintains the "buy" rating
In the first quarter of 2022, the company achieved a revenue of 1.246 billion yuan, a year-on-year decrease of 2.15%. The company is the leader of insurance Xinchuang. The self-developed core system has a high market share, clear policies, independent and controllable key technologies, and the growth drive of the company remains unchanged. We keep the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 760, 991 and 1260 million yuan, and the EPS will be 128, 1.67 and 2.12 yuan. The corresponding PE of the current stock price is 17.8, 13.6 and 10.7 times, maintaining the "buy" rating.
Event: the company released the first quarterly report of 2022
In the first quarter of 2022, the company achieved a revenue of 1.246 billion yuan, a year-on-year decrease of 2.15%; The net profit attributable to the parent company was 07 million yuan, a year-on-year increase of 7.77%; The net profit deducted from non parent company was 05 million yuan, a year-on-year decrease of 25.15%. The company's revenue and non deduction profit have declined, which we expect is mainly due to the impact of the epidemic on delivery.
Insurance it has developed rapidly, with clear policies and independent and controllable key technologies
(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. According to CCID, the market scale of China's Insurance IT solutions will reach 25.04 billion yuan in 2024, with a broad space. (2) Policy catalysis: in January 2022, the China Banking and Insurance Regulatory Commission issued the guiding opinions on the digital transformation of the banking and insurance industry, requiring "accelerating the construction of the digital economy and comprehensively promoting the digital transformation of the banking and insurance industry". At the same time, it is clear that "the principle of independent and controllable key technologies, reducing external dependence and avoiding single dependence" is expected to accelerate the investment in insurance it.
The leading position of the company is stable and is expected to fully benefit from the acceleration of industry informatization
(1) according to IDC data, in 2020, the company's market share in insurance it solutions reached 35.0%, far exceeding the second in the industry. Relying on the Software Institute of the Chinese Academy of Sciences and Haidian SASAC, the company has high-quality long-term customers and a stable leading position. (2) As the first manufacturer to develop the core insurance system in China, the company has developed a number of core products and improved the product matrix. The core system independently developed by the company has a high market share and is expected to usher in an accelerated development period under the catalysis of policies. (3) The company actively promotes the "insurance +" strategy, focusing on the fields of great health, transportation, consumption and safety. At present, the gradual implementation of projects in various fields is expected to continuously broaden the business boundary.
Risk warning: policy promotion is not as expected; Insurance IT investment is less than expected.
