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润和软件(300339)19年半年报点评:主业发展有条不紊 公司业绩稳步向上

Run and Software (300339) 19 semi-annual report comments: the main business development is orderly and the company's performance is steadily upward.

民生證券 ·  Aug 23, 2019 00:00  · Researches

I. Overview of events

In the first half of 2019, the company achieved a total operating income of 1.066 billion yuan, an increase of 21.53% over the same period last year, a net profit of 109 million yuan, an increase of 11.52% over the same period last year, and a net profit of 99 million yuan, up 6.68% over the same period last year.

II. Analysis and judgment

Rapid growth in income and slight increase in expense rate

During the reporting period, the company adhered to the two major strategic development directions of financial technology and smart things, and the main business was promoted in an orderly manner, with a revenue growth rate of 21.53%. With the rapid expansion of the company's business, the expense rate has increased. In the first half of 2019, the company's sales, management and R & D expenses increased by 25.23%, 22.68% and 22.39% respectively compared with the same period last year, all slightly higher than the revenue growth rate. The sum of the three expense rates reached 19.74%, a slight increase of 0.24 percentage points over the same period last year.

Hand in hand with Ant Financial Services Group, financial technology business to achieve product innovation

In March 2019, the company and Ant Financial Services Group jointly launched a "new generation distributed financial core system" for the domestic banking industry, and completed the important product upgrade of the financial technology business. The new generation of distributed financial core system will build a strong mid-Taiwan capability for traditional banks and solve the problems of digital transformation of financial institutions, such as product management, fund management, account settlement and so on. The company's financial technology business achieved 604 million yuan in revenue in the first half of 2019, an increase of 11.82% over the same period last year. In the future, with the favorable landing of policies such as the central bank's financial science and technology development planning and the promotion of a new generation of distributed financial core system, the growth rate of financial technology business is expected to further increase.

Adhere to the digital strategy, intelligent terminal information business performance during the reporting period, the company based on the existing chip and end device development, artificial intelligence, cloud computing, big data and other technical capabilities as the basis, through the end to cloud, from technology to application full-stack IoT solution capabilities. The company's HiHope AI open source community has worked closely with the industry's top chip vendors and operating system vendors, including Huawei Hayes, Renesa Electronics, Google, Texas Instruments Inc, and launched 9 high-performance AI development platforms, such as HiKey960 and HiKey970. In the first half of 2019, the company's intelligent terminal information business achieved revenue of 258 million yuan, a year-on-year growth rate of 87.84%, which has become the main driving force for the company's revenue growth.

III. Investment suggestions

Cover for the first time and give recommended rating. The company continues to promote the digital upgrading strategy around the two major businesses of financial technology and intelligent terminal informatization, and has maintained a close partnership with industry giants such as Ant Financial Services Group and Huawei.

It is estimated that the EPS of the company from 2019 to 2021 is 0.46 soybean 0.58 yuan 0.75 yuan respectively, and the corresponding stock price PE is 35X/28X/21X respectively. Hang Seng Electronics, Changliang Technology and Wingshi Sheng are selected as comparable companies. The industry average PE from 2019 to 2021 is 51X/37X/30X respectively. The company has a certain valuation advantage and is recommended and rated.

Fourth, risk tips:

New product promotion is not as expected, goodwill impairment risk.

The translation is provided by third-party software.


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