On the evening of February 27, the company released its 2022 results, KuaiBao. The company realized a total operating income of 7.501 billion yuan, an increase of 10.61% over the same period last year; a net profit of 826 million yuan belonging to shareholders of listed companies, an increase of 0.16% over the same period last year; and a net profit of 693 million yuan belonging to shareholders of listed companies after deducting non-recurrent profits and losses, a decrease of 3.26% over the same period last year.
Main points of investment:
The performance of the whole year grew steadily, and the overseas business expansion was smooth: the company's annual revenue in 2022 achieved steady growth under the influence of the epidemic, the operating profit increased by 10.32% compared with the same period last year, and the main business was in good condition. The company made a further breakthrough in its overseas business in the fourth quarter. According to the company's announcement in December 2022, the two companies signed major financial equipment contracts with the largest financial institutions in Turkey and Mexico, with a contract amount of about 196 million yuan and 183 million yuan respectively. The company's brand recognition and market share in the Middle East and Latin America continue to improve, driving the rapid growth of the company's overseas business, overseas business expansion will be an important driving force for the company's future performance growth.
The proposed acquisition of CICC pay has outstanding synergy in the field of financial technology: in November 2022, the company announced its intention to acquire a 90.01% stake in CICC pay. CICC holds a nationwide Internet payment license and is the main service provider in the field of B-end payment in China. Through this acquisition, the company will be able to coordinate the advantageous resources of CICC in the field of B-end payment in the field of financial technology, and combine payment business with the company's deeply cultivated urban services, supply chain finance, cross-border payment and many other business scenarios, further strengthen the layout in the field of banking and government financial technology, and enrich products and solutions. At the same time, taking the payment business as a starting point, it is helpful for the company to speed up the construction of the payment scene of digital RMB on the B side, and further consolidate the card position advantage of the company in the field of digital RMB.
Increase capital to Guangzhou data Exchange, seize the opportunity of marketization of data elements: in December 2022, the company announced to participate in the capital increase of Guangzhou data Exchange Co., Ltd. after the capital increase, the shareholding ratio reached 10.5%, ranking the third largest shareholder. As the core link of the marketization of data elements, data trading is expected to become the development focus of local governments with the strong support of policies, and the follow-up product innovation and trading of big data exchanges will also be the focus of market attention. The company's forward-looking investment data exchange is expected to receive continuous attention in the context of the rapid development of the data factor market.
Once again won a large order, non-cash equipment was recognized by the bank: on February 24, the company announced that it became the winning candidate for the super counter project of China Agricultural Bank Of China Co., Ltd. in 2022, with a total project amount of 425 million yuan. The company's intelligent financial equipment has been shortlisted for six state-owned banks, 12 joint-stock banks and major city merchants Nongxin. The winning bid shows that the company's non-current equipment has been further recognized by customers of large state-owned banks, which will enhance the company's market share in the field of non-existing intelligent devices and consolidate its leading position in the industry.
Profit forecast and investment advice: the company has won a series of bids since the fourth quarter, providing a strong guarantee for 23 years' performance. According to KuaiBao's performance, combined with the current order situation, the company adjusts its profit forecast. It is estimated that the company's operating income in 2022-2024 will be 75.01 million yuan, and its net profit will be 8.25 million yuan, respectively, and its net profit will be 9.26 billion yuan. It corresponds to the closing price of 32.26x/28.73x/25.57x on February 28, 2023, and maintains the "overweight" rating.
Risk factors: the progress of digital RMB landing is not as expected; the promotion of financial innovation is not as expected; market competition is intensified; technological research and development is not as expected; exchange rate fluctuation risk.