When you win, win: a well-known domestic financial system provider
Winning Shisheng has always followed the development of the financial industry, focusing on the research, development and service of financial industry information systems. The company currently has more than 300 clients in various financial industries. The company's customers include banks, fund companies, securities companies, insurance companies, trust companies, financial management companies, national social security, etc. Currently, the company mainly focuses on application software and services for financial institution asset management and asset custody business systems, and its share in the domestic market is around 90. The company's strong commercialization capabilities promote rapid customer expansion, which is expected to be the driving force for continued growth. The company's EPS is expected to be 0.32, 0.41, and 0.50 yuan respectively in 2019-2021, with a target price of 14.08-15.36 yuan, covering the “buy” rating for the first time.
Asset management and custodian product lines are quite complete
As an application software and value-added service provider for overall informatization construction solutions for asset management business and asset custody business in the financial industry, Yingshisheng has a rich product range and functions to meet the needs of customers at different levels in the industry. Currently, the main products are mainly divided into four categories: investment trading products, risk management and performance products, clearing and valuation products, and bank financial asset custody.
The company's performance is expected to usher in marginal improvement
The negative growth in net profit in 2018 was mainly influenced by external factors. In 2018, the operating scale of the holding subsidiaries Shanghai Yingliang Financial Services Co., Ltd. and Shanghai Yingbao Commercial Factoring Co., Ltd. shrank due to the slowdown in macroeconomic growth, declining capital markets, and declining policy demand, which led to a decline in performance. Judging from industry demand, we believe that with the gradual implementation of the new regulations of the Science and Technology Innovation Board and bank financial management subsidiaries, downstream demand is expected to be rapidly released, and the company's performance is expected to usher in marginal improvements.
The first coverage gave a “buy” rating
In the asset management business field, the company is moving from asset management back-end systems and developing from back-end to front-end. Currently, it can provide integrated IT systems covering most asset management business processes. We expect the company to achieve net profit of 236 million, 302 and 374 million yuan respectively in 2019-2021, up 33%, 28% and 24% year-on-year. Corresponds to EPS 0.32, 0.41, 0.50 yuan, corresponding to PE40, 31, 25 times. The average price-earnings ratio of comparable companies in 2019 was 76 times, and the price-earnings ratio of the company was 40 times. We are optimistic about the market expansion potential brought about by the company's commercialization capabilities, and the expansion of industry demand has also brought development opportunities to the company, but compared with comparable companies, the company is smaller and does not enjoy leading premiums. The company was given 44-48 times the target PE in 2019, corresponding to the target price of 14.08-15.36 yuan, covering a “buy” rating for the first time.
Risk warning: the risk of an overall macroeconomic downturn; the risk of credit tightening due to financial deleveraging; the risk of trade friction between China and the US due to uncertainty in the economy and trade; the risk of increased industry competition