The company's Q2 performance recovered rapidly under the guidance of financial technology, while the rapid growth of inventory and advance receipt in the first half of the year reflected the abundance of orders on hand, which confirmed that the demand for science and technology development of domestic large and medium-sized banks welcomed a new business cycle. in this context, the company and Jianxin Jinke in-depth cooperation, common growth, competitive advantage, continuous strong recommendation.
Event: the company released its 2020 mid-year report, with revenue of 664 million yuan in the first half, up 0.63% over the same period last year; net profit of 29 million yuan, up 30.04%; and net profit of 24 million yuan, up 16.90% over the same period last year.
Q2 returned to growth in a single quarter, with inventory and advance receipts reflected in hand orders. The company fully recovered its 20Q2 business, and its revenue, net profit and non-return net profit increased by 30.53%, 87.41% and 85.31% respectively compared with the same period last year, and the overall performance maintained an upward trend. The profit growth rate of the company Q2 and the first half of the year is higher than the income growth rate, on the one hand, due to the rapid development of financial technology business; on the other hand, the company took the initiative to control expenses during the epidemic, and the expense rate decreased during the epidemic. Although the growth rate of the company's revenue slowed down under the influence of the epidemic in the first half of the year, it should be noted that under the new revenue criteria, the company's inventory increased by 93.7% year-on-year to 399 million yuan, and the advance revenue increased by 190.1% to 206 million yuan, indicating that the company still has a large number of contracts to be executed and pending execution. reflects the adequacy of orders on hand.
The bank IT new business cycle starts, the company competitive advantage enhancement will welcome the acceleration development period. The science and technology development needs of domestic banks, especially Zhongda banks, will usher in a new round of business cycle, and there will be more concentrated upgrading and reconstruction needs at the application system level in the future. Taking into account the central bank digital money issuance, capital market reform, financial market opening, domestic self-control and other external factors, we think that the upward sustainability of bank IT this cycle will be stronger. The company has a leading competitive advantage in many important areas of bank IT, such as the new credit business system and core business system (especially the data transfer platform), and has accumulated high-quality customer resources for many years, superimposed with Jianxin Jinke, which is the main body of CCB's financial technology export, and the development of bank IT business is expected to usher in a round of acceleration in the future.
"highly recommended-A" rating: the high business cycle of domestic large and medium-sized banks'IT construction begins in 2020, and the company's business is expected to continue to accelerate development, regardless of the impact of IPOs for the time being. It is estimated that the company's EPS for 20-22 will be 0.43amp 0.64amp 0.87 yuan, maintaining the "highly recommended-A" rating.
Risk tips: brain drain risk; core customer demand is less than expected risk.
