The IT solution provider company focusing on the financial sector was founded in 2001. Its main business is to provide integrated IT solutions in the field of credit asset management and risk management for financial institutions, mainly banks, including software development, implementation, maintenance, business consulting and related services. It has more than 140 financial institutions with customers nationwide, including 9 national joint stock commercial banks, more than 70 large and medium-sized urban commercial banks, about 30 other types of rural financial institutions, and more than 20 non-bank financial institutions and non-financial institutions, including trust investment companies, finance companies, consumer finance companies, etc. It focuses on credit management systems, and highlights that at present, the company's main source of revenue is the credit management system for banks. In 2012, the company's total revenue was 155 million yuan, and the credit management system revenue was 125 million yuan, accounting for 81.11%. According to IDC statistics, the company accounted for 9.9% of the domestic credit management system market, ranking second. Among them, the credit management system of the company in the credit management system is an advantageous product. There were 131 execution contracts in 2012, and 54 execution contracts for the credit reporting system. The number of contracts for the two subsystems accounted for 74% of the total number of contracts. The number of company credit management system contracts has remained stable in recent years, and the number of credit reporting system contracts has increased rapidly. We believe that the company's growth in the credit management system is mainly due to the expansion of subsystems. The risk management system is expected to become a new growth point. In 2012, the company's revenue from risk management systems was 14.02 million yuan, an increase of 55.54% over 2011. In the first half of 2013, the company's business revenue had reached 15.07 million yuan, over 12 years, and the growth momentum was rapid. Judging from the number of execution contracts, the number of company risk management contracts in the first half of '13 was 27, an increase of 3 over the number of contracts in '12. From a bank's business perspective, credit and risk management often go hand in hand, and companies are expected to rely on their experience and advantages in credit management and extend to risk management business to make significant progress. China's financial IT market space is huge. According to IDC statistics, in 2012, China's banking IT solutions market was 12.32 billion yuan, accounting for about 18% of the total IT investment, and the growth rate will remain above 12% in the next few years. As the scale of business and assets in banks and other financial sectors continues to grow and infrastructure is accumulated over a long period of time, on the one hand, IT investment will continue to grow, and on the other hand, the share of software and services will continue to rise, and the growth rate of the financial IT solutions market will be higher than the overall IT investment growth rate. The capital raised by the fund-raising project analysis company this time is mainly invested in next-generation credit management system construction projects, risk management system construction projects, R&D center construction projects, and informatization service and support platform construction projects. We believe that fund-raising projects can help companies consolidate the strengths of their existing credit management systems and help grow their risk management systems and other businesses. Risk Alerts We remind investors to pay attention to: 1. Competition in financial institutions such as banks has intensified, leading to a decrease in IT demand; 2. Competition in the financial IT field has worsened, and gross margin continues to decline; 3. Labor costs have risen too fast and risks such as bad debts. Profit forecast and investment recommendations We expect the company's revenue from 2013 to 15 to 2015 to be $205 million, $264 million, and $344 million, net profit of 50.21 million, 65.73 million, and 79.93 million, respectively, and a three-year compound growth rate of 30.42% and 21.49% in revenue and net profit. Based on the calculation of 68.72 million shares after issuance by the company, the corresponding EPS is 0.73, 0.96, and 1.16 yuan, respectively. Comparable companies have an average price-earnings ratio of 32 times in 2014. The company's current revenue scale is small, and it has its own advantages in specific fields. It is highly flexible in the future. We believe that the reasonable valuation of the company in 2014 after listing should be 29 to 33 times, and the corresponding price should be 27.84 to 31.68 yuan, so we recommend that you pay active attention.