Event: the company released its semi-annual report for 2021: the income in the first half of the year was 780 million yuan, an increase of 44.85% over the same period last year; the net profit was 76.54 million yuan, an increase of 50.64% over the same period last year; and the net profit after deduction was 35.41 million yuan, an increase of 10.76% over the same period last year.
Revenue maintained rapid growth: benefiting from the overall prosperity of the banking information industry and the company's card position advantage, revenue in the first half of the year grew rapidly by 44.85% compared with the same period last year. In terms of quarter-to-quarter, Q1 and Q2 increased by 84.70% and 18.93% respectively compared with the same period last year; in terms of business, technology development, technical services, consulting service fees and system integration increased by 36.44%, 39.83%, 4.84% and 5707.46% respectively compared with the same period last year. Thanks to the acceleration of financial innovation, the company's system integration business increased significantly in the first half of the year. The company's overall gross profit margin in the first half of the year was 30.94%, down 2.5 percentage points from the same period last year, mainly due to the increase in the proportion of the company's low gross margin system integration business. During the first half of the year, the expense rate, sales expense rate, management expense rate, R & D expense rate and financial expense rate changed by 0.55%,-0.04%,-0.11%, 2.32% and-1.63% respectively compared with the same period last year. Benefiting from the substantial increase in income from asset disposal in the first half of the year, the company's net profit grew significantly faster than revenue growth.
Research and development investment continues to increase: the substantial increase in the company's R & D expenditure rate is mainly due to the company's efforts to improve the efficiency of banking IT solution implementation, enhance market core competitiveness and increase R & D investment. The company will raise funds to invest in the construction of the new generation banking IT solution project, the industrial chain financial integrated service platform upgrade project and the R & D center upgrade project, so that the company's main products can be improved and upgraded.
The advantage of card position is obvious, and the competitiveness continues to enhance: according to the company's semi-annual report, in the latest "2020 Bank of China Ltd. Industry IT solution Market share Analysis report" released by Sadie Consultants in June 2021, the company ranked fourth, continued to improve, and its competitiveness was further enhanced. The company's financial technology products focus on bank assets and risk control business, which account for about 80% of the bank's income and business sources. In the analysis by Sadie consultants, the company ranked first in credit card and risk management, second in customer relationship management, and third in credit systems, business intelligence and transaction banks. The company's credit system and credit card core system based on distributed technology and micro-service architecture have implemented a number of projects with industry influence and benchmarking. At the same time, the testing services in corporate consulting services and financial IT services are also in an industry-leading position.
Profit forecast, valuation and rating: the net profit forecast for 21-23 years is 1.95,2.61 and 349 million yuan respectively. It is optimistic that the company, as a bank IT leader, benefits from the improvement of the industry boom and the advantage of the company's card position, maintaining the "overweight" rating.
Risk hints: market competition aggravates risk, accounts receivable bad debt risk, working capital shortage risk, goodwill impairment risk, secondary IPO risk and so on.
