As a professional bank IT construction and operation and maintenance service provider, the cloud of bank IT system brings new opportunities for the company, and is expected to become an overall solution provider of financial information. The first "prudent recommendation-A" rating

Excellent bank IT construction and operation and maintenance service providers: the advent of the cloud computing era has brought opportunities and challenges for financial IT enterprises to reshuffle. We are optimistic that the company will take advantage of this industrial background to develop IT operation and maintenance and software solution business, and achieve the adjustment and optimization of revenue structure. As a service provider that mainly provides IT solutions to commercial banks, the company's main business includes IT infrastructure construction, software solutions and IT operation and maintenance services, and is a leader in domestic financial front-end and channel applications, data management and business intelligence applications. The company's ownership structure is clear, the operation is sound and profits continue to grow, and the effect of cost control is remarkable. In the future, with the successive production of fund-raising projects, the core competitiveness may be further enhanced.

Bank IT demand continues to rise: the continuous investment in information technology is the inherent demand for the banking industry to enhance its own value. According to CCW Research forecast, the domestic banking IT investment market will reach 55 billion yuan in 2019, the market space is very broad. And the industry has typical deep barriers in many aspects, such as talent, technology, experience, qualification, business continuity, etc., and the leading manufacturers have significant first-mover advantages.

Welcome the "cloud era" and create overall financial information solutions and services: the company has ploughed the banking IT service field for more than a decade, with high R & D investment, 87.29% of R & D personnel, leading team size, marketing service network all over the country, and has accumulated many high-end customers, mainly large and medium-sized banks, with a stable customer base and cooperative relationship. And with Huawei, tide, IBM, EMC and other domestic and foreign first-line IT software and hardware giants to establish a close partnership. The CBRC put forward quantitative requirements for the proportion of banking cloud computing architecture at the end of the "13th five-year Plan". In a distributed environment, the gradual increase in the proportion of the overall investment scale of IT operation and maintenance is the general trend. From the scale of IPO investment, IT operation and maintenance is the most important starting point for the company in the future, and is expected to gradually infiltrate into the non-financial market based on the financial information market. There are as many as 2436 regional banks in China, including urban commercial banks and rural financial institutions, but the level of informatization is generally relatively primary, so the software solution business from regional banks is expected to continue to be the main growth point of corporate performance. With the evolution of bank IT system to the cloud, the convergence of massive data has become possible. The integration of cloud computing and big data contains new opportunities, which provides a broad market space for the company's cloud-based data management and data analysis business. In the future, the company is expected to become the overall solution and service provider of financial information based on the three main industries of IT operation and maintenance, software solutions and IT infrastructure construction.

The first "prudent recommendation-A" rating: the company's EPS from 2016 to 2018 is expected to be 0.57,0.67,0.84 yuan respectively, corresponding to 96-81-65 times PE. Cover for the first time to give a "prudent recommendation-A" rating

Risk hint: the progress of business structure adjustment is lower than expected; the growth rate of downstream investment is lower than expected