What happened: on October 29, 2020, the company released three quarterly reports, showing revenue of 600 million yuan in the first three quarters, an increase of 26.51 percent over the same period last year; net profit of-19.7895 million yuan, loss narrowing by 67.41 percent over the same period last year; deduction of non-net profit of-21.9508 million yuan, loss narrowing by 65.57 percent year-on-year.
The revenue growth rate is steady, and the profit is the best since listing. The company's Q3 achieved revenue of 232 million yuan in a single quarter, an increase of 19.64% over the same period last year, a net profit of-2.059 million yuan, a loss of 91.64% year-on-year, and a loss of 91.08% after deducting non-net profit of-2.2871 million yuan. Due to the obvious seasonality of the purchase and acceptance process of bank customers, the company's annual income and profits are mostly recognized in the fourth quarter. The company's profits in the first three quarters and Q3 are the best since listing, and the annual results are expected to maintain a high growth trend.
During the period, the cost trend is downward, and the operating efficiency is improved. The company's expense rate during the first three quarters was 25.89%, which was 6.96% lower than the same period last year. Q3 single-quarter expense rate was 24.64%, and 1.71pcts was lower than the same period last year. Among them, the sales expense rate + management expense rate in the first three quarters was 21.35%, which decreased 6.19pcts compared with the same period last year. The company shows excellent cost control ability on the premise of improving the revenue scale, and the operating efficiency is optimized obviously. Due to the higher recognition scale of revenue in the fourth quarter and the relatively stable absolute value of expenses, the expense rate is expected to decline further throughout the year.
The business blossoms in an all-round way to speed up the construction of database ecology. Since October 12, the company has announced the winning information and cooperation agreements related to the database of several banks'IT. Gradually landed projects and reached cooperation agreements in the field of bank IT, database and industry. The company's business development efforts are gradually enhanced, highlighting the strong product technology and innovation capabilities, and the follow-up is expected to continue to achieve performance, building an industry position in the field of bank IT and database.
Profit forecast and investment advice: adjust the profit forecast, the company's net profit from 2020 to 2022 is expected to be 0.70,1.11 and 171 million yuan respectively, maintaining the "prudent overweight" rating.
Risk hint
Bank IT investment is lower than expected; industry competition is intensified; GOLDILOCKS database promotion is not as expected.