Event
The company released its mid-2022 report, with operating income of 898 million yuan, an increase of 15.09% over the same period last year. Net profit belonging to shareholders of listed companies was 27.1921 million yuan, down 64.48% from the same period last year. In the second quarter alone, the main income was 453 million yuan, up 16.69% from the same period last year; the net profit was 20.488 million yuan, down 68.34% from the same period last year; and the non-net profit was 17.8951 million yuan, down 35.85% from the same period last year.
Brief comment
1. The revenue grows steadily, and the fee paid by shares affects the apparent deduction of non-profit.
The epidemic spread repeatedly and frequently in the first half of 2022, which brought challenges to the operation and management of the company, and the progress of project implementation, contract signing and payback were affected to a certain extent. The company actively overcame the response, achieving revenue of 898 million yuan in the first half of the year, an increase of 15.09% over the same period last year. East China and North China, as important areas of the company's income, were greatly affected by the epidemic, and the revenue growth rate dropped to 8.37% and 14.71% respectively. However, the gross profit margin of each business has risen steadily, and the overall operation has remained sound. Affected by the deceleration of the revenue side and share payment fees, the company's deduction non-profit decreased by 35.85% compared with the same period last year, of which the impact of share payment fees was about 24.22 million yuan. after excluding the impact, the deduction non-profit increased by 12.38% year-on-year, which basically matched the income growth rate.
2. The demand for the project is still increasing, and the company will strengthen R & D and continue to enhance its market competitiveness.
Under the background of the digital transformation of banks, the demand for the project is still increasing, but the pace is lagging behind. With the relief of the epidemic in the second half of the year, especially in East China and North China, it is expected that the demand for bank IT will be fully released in the second half of the year, and the pace of project construction will be accelerated. According to Sadie's consultancy report, the company ranks fourth in bank IT market competition, with obvious advantages in credit card, transaction banking, credit management system, risk management, customer relationship management and other solutions, and the company's testing services and consulting services are also in a leading position in the industry. In the first half of the year, the company continued to strengthen the research and development of credit card, risk management, credit, transaction bank, data center and intelligent marketing, enhanced the market competitiveness in the above areas, and successfully won a number of influential projects in the industry. In the first half of the year, the company's R & D investment reached 150 million yuan, a substantial increase of 45.14% over the same period last year. In the future, banks will continue to increase IT investment in distributed architecture, Xinchuang transformation, risk control, compliance supervision, digital RMB and other directions, providing necessary conditions for the company's future business growth.
3. Vigorously promote strategic transformation and start to build Tianyang cloud service system.
Since 2021, the company has increased its R & D investment in the field of cloud computing, including intelligent risk control cloud and cloud management platform, hoping to enable the digital transformation of small and medium-sized banks with the cloud computing mode. to provide a new driving force for the company to achieve great-leap-forward development. At present, the company can provide small and medium-sized banks with an overall cloud solution from SaaS layer to IaaS layer. In SaaS layer, the company provides banks with data, traffic and scenarios needed for business development through financial cloud, industry and financial cloud and data cloud, and continues to empower the internal and external digital transformation of banks. 2022 is the first year for the company to vigorously promote strategic transformation and begin to build Tianyangyun service system. in the first half of the year, the company successively launched risk control service cloud products based on different scenarios, production and financing link cloud products based on supply chain financial cloud, and one-stop cloud marketing products from marketing, sales to operation services. at the same time, it has reached ecological cooperation with nearly 100 partners to jointly build production and financial services. In May 2022, the company disclosed a plan to issue convertible corporate bonds to non-specific targets, and the company increased its R & D investment in cloud computing through investment projects to enhance its core competitiveness, which will lay a solid foundation for subsequent cloud business development.
4. Investment suggestions: the company's customer structure is constantly optimized, and the scale of business income from cooperation with large bank customers accounts for a relatively high proportion and shows a trend of continuous growth. In the future, we will continue to build Tianyang cloud service system, provide cloud services for small and medium-sized bank customers, and expand the company's second growth curve. We maintain our previous profit forecast and expect the company to achieve an operating income of 2.2377,3668 million yuan in 2022-2024, respectively, and a net profit of 1.43,1.92 trillion yuan. The PE valuation corresponding to the current market capitalization of the company is 19.9 times, maintaining the "buy" rating.
Risk hint: bank IT expenditure is not as expected, industry competition is further intensified, labor costs increase risk.