Colan Software, a leading bank channel solutions company, is a leading provider of financial IT solutions in China. Its main business is to provide software product development and technical services to banking-oriented financial institutions. Its main products include e-banking, Internet finance, online banking security, and core banking business IT solutions. The company currently has more than 2,400 employees and branches in Beijing, Shanghai, Shenzhen, Fuzhou, Chengdu, Nanjing, Chongqing, Hong Kong and other places. The company has accumulated rich experience in various applications such as online banking, mobile banking, electronic payments, third-party payments, foreign exchange and precious metals trading platforms, intelligent monitoring, and bank-enterprise access, etc., providing financial institutions with a full range of technical services from electronic banking to core systems. Among them, the company is in a leading position in the banking channel solutions market, with a market share of over 60%, ranking first. In 2016, the company's e-banking products achieved revenue of 380 million yuan, accounting for 58% of total revenue; realized gross profit of 57.55 million, accounting for 59% of total operating profit. Customer coverage is wide and stickiness is high. Continued order growth drives performance improvement. The company's customers cover a total of 80% of domestic banking institutions. The main sources of revenue are joint stock banks and urban commercial banks. Bank customers usually have secondary development and subsequent IT technology services requirements, so they are more attached to suppliers. As the company continues to expand, orders continue to grow due to the common needs of new and old customers. At the end of 2016, the company had in hand orders with agreed contract amounts of 240 million yuan, an increase of 20% over the previous year, and 113 orders settled based on actual workload, an increase of 110% over the previous year. The increase in orders provided a guarantee for the improvement of the company's performance. The bank electronic channel market has broad prospects, and the company's competitive advantage highlights that as the level of informatization of commercial banks in China continues to improve, electronic channels are gradually replacing counters as the main source of commercial banking business revenue; Internet finance is accelerating the transformation of traditional commercial banks and vigorously developing direct marketing banks. On the other hand, the current development of e-banking has entered the multi-channel era. Competition for e-banking, such as online banking, mobile banking, telephone banking, and self-service terminals, is becoming increasingly fierce. Banks are rapidly promoting their business simultaneously to customers through multiple channels to enhance their competitiveness. Under this trend, the channel solutions market will accelerate development. At present, China's banking IT solutions industry is 225 billion yuan, of which the market size of channel solutions is 5.34 billion yuan. The market size is expected to reach $30 billion in 2021. As a leading company in this field, Colan Software is expected to benefit from the rapid development of the industry. Profit forecasting and valuation We are optimistic that the rapid development of channel solutions will drive the industry. The company is expected to expand its market share with its 20 years of long-term cultivation. We forecast that Colan Software's revenue for 2017-2019 will be 840,000/1.1 million/1.44 billion, net profit of 53 million/65 million/82 million, respectively, and a three-year compound growth rate of 24%. No ratings will be given yet.