\u3000\u3000 Digital China Information Service Company Ltd(000555) (000555)
China’s leading bank it core system provider. Digital China Information Service Company Ltd(000555) was founded in 1984 and entered the field of financial informatization in 1987. It has always maintained keen insight and led the industry trend. In 2007, it took the lead in promoting SOA architecture in the banking industry, landed on the main board of Shenzhen Stock Exchange in 2013, launched the “new generation distributed banking core system” in the industry in 2016, launched the “blockchain technology platform” in 2018, released the “enterprise level micro service platform” in 2019 and the “enterprise level AI financial platform” in 2021.
Financial Xinchuang full stack service, with rapid growth of orders. The company has the ability to apply the full stack of financial services from financial infrastructure to the financial industry, and has formed five business systems: information innovation architecture planning and design, banking system information innovation solutions, information innovation full adaptation services, information innovation cloud and distributed infrastructure, information innovation integration and operation and maintenance services. In the third quarter of 2021, the company won the trust and innovation orders of many large state-owned banks, policy banks, joint-stock banks, urban commercial banks, rural commercial banks and financial institutions including securities and insurance. In the first three quarters, the company won the bid of 441 million, an increase of nearly 10 times compared with the whole year of last year.
Build an interconnected digital RMB banking solution. In 2020, the company released the blockchain platform Sm@rtGAS And digital wallet solutions. As of October 2021, the company has helped nearly 20 institutions including China Construction Bank Corporation(601939) , Guangdong Development Bank, Bank Of Beijing Co.Ltd(601169) , Bank of Guangzhou and Bank of Guizhou to complete the construction of digital currency related systems in different stages, tried the innovative application of digital currency in prepaid card, logistics, supply chain finance and other fields, and launched a “prepaid consumer service platform” based on smart contract technology. The company has developed and improved new solutions based on various functional modules of digital RMB, including digital RMB interconnection system and relevant solutions based on enterprise wallet, merchant wallet and personal wallet.
Investment suggestion: the company is a leading enterprise in the core system of banks. The implementation of financial credit creation and digital RMB will contribute to the future development of the company. It is estimated that the company’s EPS from 2021 to 2023 will be 0.56 yuan, 0.72 yuan and 0.95 yuan respectively, maintaining the “buy” rating.
Risk tip: the landing of digital RMB is less than expected; Industry competition intensifies
