The company is a participant in the domestic banking IT service industry.
The company mainly provides IT solutions for commercial banks, including IT infrastructure construction, software solutions and IT operation and maintenance services. From 2013 to 2015, the company's income from bank customers accounted for 70.20%, 75.83% and 73.40% of total revenue, respectively.
Serving a number of large domestic banks, IT infrastructure construction revenue accounts for more than 70% of the company is one of the few domestic service providers that provide IT infrastructure and IT operation and maintenance services to Industrial and Commercial Bank of China, China Construction Bank Corporation, Agricultural Bank Of China, Bank of China Ltd., Bank of Communications and Postal Savings Bank of China at the same time.
It has the first-level qualification of computer system integration of the Ministry of Industry and Information Technology, and is a leading independent platform software solution provider in the fields of financial front-end and channel applications, data management and business intelligence applications. The company's main business is IT infrastructure construction, and its revenue share has been maintained at more than 70% in the past five years.
Bank IT investment is growing steadily and the regional banking market is promising. In recent years, Bank of China Ltd. 's IT investment has always maintained a growth of about 5%, and the demand for bank IT services is still relatively stable. The company used to mainly serve large banks, by contrast, regional banks have more room for development. At present, the company has made clear the new strategy of expanding new regional customers, which may effectively improve the company's revenue and profit scale.
The fund-raising project will help to improve the software business service capability. It is estimated that the EPS for 16-18 years will be 0.51,0.57,0.63 respectively.
We believe that: 1) as a domestic bank IT service provider, the company has relatively stable large bank customers, which is an important guarantee for stable income growth. 2) the company will actively expand customers in other financial areas, expand the regional banking market, or will further enhance the company's revenue and profit scale. 3) the fund-raising project focuses on software business development, which helps to improve the company's overall competitiveness and profitability. Considering the company's initial public offering of 30 million shares, the diluted EPS is estimated to be 0.51,0.57 and 0.63 yuan respectively from 2016 to 2018.
Risk hint
Banking IT investment scale shrinks; large clients are highly concentrated and dependent; fund-raising projects are less than expected.