Event: the company released its semi-annual report in 2019, with revenue of 359 million yuan in the first half of the year, an increase of 16.91% over the same period last year, a net profit of 80.3204 million yuan, an increase of 6.12% over the same period last year, and a net profit of 75.6984 million yuan after deducting non-recurrent profits and losses, an increase of 8.56% over the same period last year.
Revenue grew steadily, and the increase in the proportion of costs and R & D expenses affected profit release: in the first half of the year, revenue from customized software development and sales of the company's main business and software technical services were 241 million yuan and 92 million yuan, respectively, up 15.76% and 28.36% from the same period last year. The comprehensive gross profit margin increased slightly from 76.25% to 78.21% in the first quarter, but still decreased from 81.44% in the same period last year. During the reporting period, the company's R & D investment was 138 million yuan, an increase of 31.06% over the same period last year, accounting for 38.56% of operating income. The decline in gross profit over the same period last year and the increase in the proportion of R & D expenses caused the company's return net profit growth to be lower than the income growth rate.
New generation of products continue to hit the ground, new financial management products launched bank customers: during the reporting period, the company actively promoted the construction of "new generation asset management system" and "new generation asset escrow system" aimed at intelligent operation, and landed in a number of customer applications. Among them, aiming at the adjustment of ETF transaction settlement mode in Shenzhen stock market, the company launched transformation plans involving valuation system, PCF system, capital system, etc.; in view of the introduction of MOM mechanism, the company upgraded the asset management valuation and trusteeship valuation products accordingly. On the other hand, the bank financial management business system developed by the company for the new financial management rules has been launched one after another in bank customers.
Investment suggestion: the company's new generation asset management system platform and new generation asset trusteeship system continue to promote to promote performance growth. At the same time, we will continue to accelerate the landing of new technology applications and accelerate the transformation and upgrading of our business model from a financial software provider to a financial service provider. It is estimated that the company's EPS from 2019 to 2020 will be 0.31 yuan and 0.36 yuan respectively, maintaining the "buy-A" rating, with a six-month target price of 12 yuan.
Risk hint: innovation business is less than expected risk; Internet financial supervision risk.