\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 570 Hundsun Technologies Inc(600570) )
Core view
The revenue increased rapidly, and the performance was more affected by non recurring profits and losses. The company’s 22q1 revenue was 970 million yuan, a year-on-year increase of 29.6%. The net profit attributable to the parent was 41 million yuan, a year-on-year decrease of 124%, and the net profit deducted from non attributable to the parent was 15 million yuan, a year-on-year decrease of 59%. The company’s revenue increased by 29.6% and made a good start in the first quarter. On the profit side, the company’s 22q1 gross profit margin was 70.4%, down 1.9 percentage points year-on-year, which was mainly due to the growth of the company’s customized development business. The sales / management / R & D / financial expense rates were 10.2% / 13.4% / 51.58% / – 0.26% respectively, with a year-on-year increase of 1.2%, a decrease of 0.4%, an increase of 2% and an increase of 0.4 percentage points respectively. The overall period cost was within the controllable range. Therefore, on the one hand, the decline of the company’s performance is affected by the growth of gross profit margin and period expenses, but more importantly by non recurring profit and loss (non recurring profit and loss in 22q1 was – 60 million yuan, a year-on-year decrease of 190 million yuan).
Cash inflows accelerated and high growth throughout the year is expected. The company’s cash flow from selling goods and providing labor services in 22q1 was 630 million yuan, with a year-on-year increase of 26.3%, which basically matched the growth rate of income. Compared with 21 years, the cash inflow rate was significantly accelerated. Due to the increase in the number of personnel (a net increase of more than 3300 personnel in 2021), the cash flow paid to employees in 22q1 was 1.4 billion yuan, with a year-on-year increase of 31.3%, so the net cash flow in 22q1 was 1.07 billion yuan, with a year-on-year decrease of 29%. On the whole, as the cash outflow of employee expenses is relatively rigid after personnel growth, the cash inflow in the first quarter is more referential. We believe that the company’s annual high growth can be expected: 1) the company set a target of 25% revenue growth in 22 years in the annual report of 21 years, exceeding the historical level. At the same time, the revenue growth rate of 21q3 / 21q4 / 22q1 in a single quarter was 48.7% / 29.5% / 29.6%, which increased rapidly for three consecutive quarters; 2) Considering the impact of the epidemic in Shenzhen and Shanghai at the beginning of the year, the income side of the company was affected, and the actual operation was better than the apparent situation; 3) The inventory of 22q1 was 550 million, an increase of 80 million over 21a, which was mainly due to the contract performance cost and laid a good foundation for subsequent growth.
The competitiveness is outstanding, and the growth space is still broad. The company is an industry leader with outstanding competitiveness. In 2021, it rose to No. 38 in the global ranking of IDC financial technology. The company has outstanding growth: 1) the company’s traditional fist product UF3 0 and o45 have completed the launch of some head customers in 2021, and are expected to be launched in a wider range of customers in 2022; 2) The company actively cultivates new business lines, including the acquisition of Baotai into insurance, the launch of PMS portfolio system, the acquisition of summit fund management system, and the layout of customized development business of customers, which will open up growth space; 3) China’s capital market reform has gradually entered the deep-water area, and the company is the deep beneficiary.
Risk warning: financial policy supervision risk; Industry competition intensifies; The expansion of new products was less than expected.
Investment advice: maintain the “buy” rating.
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.531/18.09/2.167 billion, with a year-on-year growth rate of 4.6/18.1/19.8%; Diluted EPS = 1.05/1.24/1.48 yuan, and the current share price corresponds to PE = 33.4/28.3/23.6x. The company is a leader in financial technology and maintains a “buy” rating.
