\u3000\u3000 Yusys Technologies Co.Ltd(300674) (300674)
Event:
The company announced the issuance of fixed additional shares on January 18, 2022. A total of 16 objects participated in the issuance, with a total of 50.45 million shares issued, accounting for 7.1% of the total share capital after the issuance; The final issue price is 22.10 yuan / share, which is 85.6% of the closing price on January 18; After deducting the issuance expenses, the company actually raised 1.097 billion yuan.
Comments:
1. The fixed increase has attracted high attention in the market, which reflects the confidence of professional investors in the company’s long-term development and the overall financial technology sector. A total of 53 professional investors / investment institutions have made effective subscription. The subscription price range is 17.64 ~ 25.50 yuan / share, and the final issuance price is 22.10 yuan / share, up to 1.25 times the issuance benchmark price.
2. Benefiting from the wave of financial information innovation, digital RMB and other industries, the company’s software business and innovative operation business have maintained high-quality growth. In the software business, the number of new contract orders in the credit business doubled, the number of tens of millions of orders increased sharply, and the increase of order amount far exceeded the increase of order quantity; With the full launch of the V5 version of credit in the national market in 2022, we believe that the business will continue its vigorous growth momentum. The innovative operation business has increased by about 50% on average in the past two years, and the company expects to maintain this growth rate in the next 2-3 years.
In addition, the company has maintained close cooperation with Huawei, Tencent, Kirin software, NPC Jincang and other companies in financial information innovation, and will continue to build a financial information innovation ecological partner system.
3. The operation quality of the company is expected to be further optimized. We believe that the gross profit margin and net profit margin of the company are expected to increase based on the following four reasons:
1) the rapid growth of software and innovative operation business will further improve the company’s revenue structure;
2) the difficulty of industry recruitment is alleviated, and the growth of personnel salary is expected to slow down; At the same time, the company gradually reduces its single dependence on the growth of the number of employees by improving human efficiency;
3) fine operation of the company;
4) actively expand overseas business.
Due to the fierce talent competition and rising labor costs in the industry in 2021, we maintain the company’s operating revenue expectation of RMB 3762 / 4696 / 5769 million from 2021 to 2023, reduce the net profit in 2021 from RMB 449 million to RMB 419 million, and maintain the net profit expectation of RMB 634 / 845 million from 2022 to 2023. At present, the corresponding PE of the stock price is 40.74/26.93/20.21 respectively, maintaining the “buy” rating.
Risk tips: 1) repeated epidemic situation makes the implementation of landing and overseas expansion less than expected; 2) Risk of intensified market competition; 3) Regulatory policy risk
