\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 03 Beijing Compass Technology Development Co.Ltd(300803) )
It is proposed to restructure wechat securities, obtain a scarce securities license and give a "buy" rating for the first time
The company is an old financial information service manufacturer in China, with tens of millions of registered users and millions of paid users. In April 2022, the CSRC approved the company to become the main shareholder of wechat securities. After the reorganization, the company will hold the brokerage license, and the in-depth cooperation of business is expected to usher in the period of accelerated development. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 349, 518 and 726 million yuan respectively, with corresponding EPS of 0.86, 1.28 and 1.79 yuan / share respectively, and corresponding PE of current stock price of 54.5, 36.7 and 26.2 times respectively. For the first time, give a "buy" rating.
Active users of securities services continued to grow, and the company's performance accelerated
The demand for securities information services is closely related to market activity. The number of Chinese securities investors continues to grow, and the demand for financial information services also increases. After users choose a product, they will form specific operation habits, have certain dependence and strong customer stickiness. The company mainly obtains customers through online promotion and transforms them into paying users through "experiential" sales. The company's products focus more on functional design, and the customer group is relatively small but more targeted. With the activity of the securities market, the company's performance opened and accelerated growth. In the first quarter of 2022, the revenue was 623 million yuan, a year-on-year increase of 89.5%, and the net profit attributable to the parent was 267 million yuan, a year-on-year increase of 176.5%.
The proposed reorganization of wechat securities has obtained a scarce securities license, and the in-depth coordination is expected to accelerate the development
In April 2022, the CSRC approved the company to become the main shareholder of wechat securities. Wangxin securities has 3 subsidiaries and 40 business departments. It is a comprehensive securities firm with business covering the whole country. We believe that after the reorganization of wechat securities, the company will hold the scarce securities license and is expected to form three business synergies: (1) Trading function: the company's information service software does not have trading function. After the reorganization, it is expected to support the company's software to place orders quickly and improve product competitiveness; (2) User diversion: the company's customers mainly come from advertising. After the reorganization, the company's financial information service will achieve strategic coordination with the securities brokerage business, which is expected to broaden the company's customer base and reduce the cost of obtaining customers; (3) Big wealth management ecology: the company has profound accumulation in the field of financial technology, which will help the digital transformation of wechat securities, form a financial service provider with the characteristics of wealth management, and further improve the layout of the company in the big wealth management ecology, which is conducive to the long-term development of the company.
Risk warning: there is some uncertainty in reorganization; The activity of the securities market decreased; Industry competition intensifies.
