\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
Event overview
The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 973 million yuan, a year-on-year increase of 29.59%; The net profit attributable to the parent company was -41 million yuan, a year-on-year decrease of 124.49%, mainly due to changes in investment income and fair value; The non net profit deducted was 15 million yuan, a year-on-year decrease of 59.13%.
Analysis and judgment:
Retail + asset management two wheel drive, Q1 revenue in line with expectations.
In 2022, the company adjusted its business lines in order to build a “high-speed rail model” for digital intelligence finance 2030. Under the new caliber, the company’s large retail it and large asset management IT businesses maintained steady growth, with year-on-year growth of 35.81% and 35.85% to 236 million yuan and 394 million yuan respectively. Under the original caliber, the large retail it revenue of 22q1 company decreased by 6.87% year-on-year, and the large asset management IT business increased by 69.6% year-on-year. Overall, the company’s Q1 revenue growth is in line with expectations. Currently, UF3 0 has achieved full-service launch, and o45 product has entered an iterative period. It is judged that it will continue to strengthen in 2022 and become a new growth pole of the company.
In 2022, the dividends of capital market reforms such as the Beijing stock exchange and the comprehensive registration system continued. On the evening of April 26, the CSRC issued the opinions on accelerating the high-quality development of the public fund industry, judging that China’s financial IT construction will be further deepened, superimposed with the accelerated promotion of financial information innovation, the high prosperity of the industry is expected to continue, and the company is expected to fully benefit as a financial it leader.
Changes in investment income and fair value cause short-term fluctuations in profits, and pay attention to the positive changes in net profit deduction brought by the improvement of human efficiency throughout the year.
The net profit attributable to the parent company decreased by 21.982 billion yuan (1.793 billion yuan) compared with the net profit attributable to the parent company during the reporting period, resulting in a decrease of 21.982 billion yuan (1.793 billion yuan) in the fair value. At the same time, in the first quarter, there were outbreaks in Shenzhen and Shanghai, which had a certain impact on the income side, but the personnel cost was relatively rigid, so the deduction of non net profit also declined. However, considering the company’s budget guidelines for the year-on-year increase of personnel costs by about 30% (year-on-year increase of 46% in 21) in the 2022 performance outlook and the company’s annual strategy of focusing on its main business, we suggest to continue to pay attention to the positive changes in net profit deduction caused by the improvement of human efficiency.
Rising personnel costs put pressure on cash flow, and the cash inflow from operating activities reached the highest point in five years, which verified the high boom.
During the reporting period, the cash paid by the company to employees was 1.399 billion yuan, a year-on-year increase of 31.3%, resulting in a year-on-year decline of 29% in the company’s operating net cash flow to -1.073 billion yuan. However, it is noteworthy that the cash received by 22q1 company from selling goods and providing labor services was 625 million yuan, a year-on-year increase of 26%, the highest point in recent five years, which verified the high prosperity of the company’s business.
Investment advice
Based on the judgment of industrial policies and the promotion of various businesses of the company and maintaining the profit forecast, we expect the company to achieve operating revenue of RMB 7.13/85.61/10.184 billion from 2022 to 2024, with a year-on-year increase of 29.7%, 20.1% and 19%; The net profit attributable to the parent company was 1.765/2.049/2.297 billion yuan, with a year-on-year increase of 20.6%, 16.1% and 12.1%; EPS is 1.21 yuan, 1.4 yuan and 1.57 yuan respectively. Taking the closing price of 35 yuan on April 27, 2022 as the reference, the corresponding PE is 29x / 25X / 22x respectively. The company continues to work in the field of financial technology, and the leading position of financial it is stable. We continue to be optimistic about the development prospect of the company and maintain the “buy” rating..
Risk tips
The risk that the promotion of financial innovation policy is less than expected, the risk that the progress of innovation business is less than expected, and the risk that the project development is less than expected due to repeated epidemics.
