\u3000\u3 China Vanke Co.Ltd(000002) 649 Beyondsoft Corporation(002649) )
Event overview
On April 26, 2022, the company released the first quarterly report of 2022. 22q1 achieved an operating revenue of 1.483 billion yuan, a year-on-year increase of 29.65%, a net profit attributable to the parent company of 52 million yuan, a year-on-year decrease of 7.11%, and a net profit deducted from non attributable to the parent company of 43 million yuan, a year-on-year decrease of 17.05%. 22q1 of the company continued to maintain rapid growth on the revenue side, and the profit side fluctuated mainly due to exchange gains and losses. We remained optimistic throughout the year.
22q1 revenue performed well, and the core financial industry continued to increase
From the perspective of revenue splitting, according to the record of investor relations activities disclosed by the company on April 28, the company achieved a financial industry revenue of 307 million yuan in 2022q1, a year-on-year increase of 40%, exceeding the overall growth rate of the company. Internet, high-tech and other industries achieved revenue of 1.176 billion yuan, a year-on-year increase of 27%, and also continued a good development trend. We believe that the company’s current transformation focuses on strategic technology and the rapid growth of financial business reflects the specific achievements of the company’s strategy.
From the perspective of gross profit margin, the comprehensive gross profit margin of 22q1 company was 21.07%, down 1.09pct from 21q1. It was mainly because the development of the company’s solution business was partially affected by the epidemic, and the cost expenditure was relatively rigid, resulting in fluctuations in the gross profit margin. Throughout the year, we believe that with the elimination of the impact of the epidemic, the gross profit margin of the company still has room to improve.
From the perspective of net profit, the net profit attributable to the parent company in 22q1 decreased year-on-year, which we believe is mainly due to the greater impact of financial expenses. 22q1 company’s financial expenses increased to 24.59 million, a year-on-year increase of 170.37%. According to the disclosure in the record of investor relations activities, the company has a certain amount of overseas business, and the settlement currencies are mainly US dollars and Japanese yen. 22q1 exchange rate fluctuations lead to an increase in foreign currency evaluation losses, especially the yen exchange rate. We believe that the exchange rate fluctuation is a systemic impact, not a problem at the company’s own operating level. With the gradual stabilization of the RMB exchange rate in the future, and combined with historical experience, Q1 profit accounts for less than 10% of the annual profit, so we are still optimistic about the good growth of the company’s profit end throughout the year.
Strategic layout, financial technology, endogenous + epitaxial two wheel drive
The financial industry dominated by banks is the vertical industry in which the company focuses on strategic layout. From 2021, the company’s strategy will focus on the financial industry. In the field of banking, according to the disclosure in the annual report, the company has maintained long-term and stable business cooperation with state-owned banks such as China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) , China Merchants Bank Co.Ltd(600036) , Industrial Bank Co.Ltd(601166) , Shanghai Pudong Development Bank Co.Ltd(600000) and many urban and rural commercial banks.
From the perspective of development strategy, the company adopts the development mode of endogenous + epitaxial two wheel drive in the financial industry. On the one hand, through the accumulation of rich it service projects, the company has internally formed a series of bank IT solution business systems, mainly including bank management solutions such as data intelligence, regulatory compliance and risk management, bank channel solutions such as mobile banking and Internet banking, digital business solutions such as open banking, scenario finance for small and medium-sized banks and other innovative businesses.
On the other hand, with sufficient funds in hand, the company adopts the way of “running fast in small steps” to focus on foreign investment in fintech (Financial Technology) products and solution enterprises along the strategic development direction. In May 2021, the company wholly acquired rongyitong, a leading manufacturer of channel solutions, which has unique experience and mature solutions in mobile channel construction, data analysis and user experience of financial institutions.
Investment advice
Beyondsoft Corporation(002649) as China’s leading global oriented software and information technology service provider, the current strategic layout of the financial technology industry is expected to achieve long-term steady growth through endogenous + extended two wheel drive. We expect the company to achieve an operating revenue of RMB 6.769/82.91/10.212 billion in 2022 / 23 / 24, with a year-on-year increase of 22.3% / 22.5% / 23.2%. The net profit attributable to the parent company was 504 / 629 / 789 million yuan, with a year-on-year increase of 24.8% / 24.8% / 25.4%. Maintain the investment rating of Buy-A and give a six-month target price of 12.75 yuan, which is equivalent to 15 times the dynamic P / E ratio in 2022.
Risk tip: the expansion of the financial industry is less than expected; Increased exchange rate fluctuations affect financial costs.
