Event: Amex disclosed its 2021 annual report that the company's revenue in 2021 was 6.782 billion yuan, an increase of 5.79 percent over the same period last year; its net profit was 824 million yuan, up 17.68 percent; and its non-return net profit was 716 million yuan, an increase of 22.57 percent over the same period last year. Improve the management ability and optimize the profit level. The growth rate of corporate profit is significantly higher than that of income, which is mainly due to the optimization of corporate governance mechanism and the improvement of fee control ability. The gross profit level of the company remained stable, and the expense rate continued to decline for three years: in 2021, the sales expense rate was 618 million yuan, and the sales expense rate decreased by 0.99pct to 9.12% compared with the same period last year; the management expense rate was 415 million yuan, and the management expense rate decreased by 0.12pct to 6.12% compared with the same period last year. The company's mixed ownership reform continues to advance, maintaining a high degree of business flexibility: introducing strategic investors to optimize the company's ownership structure and promoting the spin-off listing of high-quality subsidiaries such as Zhongke Jiangnan, and accelerating employee shareholding of subsidiaries in 2021. Strengthen the long-term incentive system. Continue to promote the scene along the main line of financial digitization. During the reporting period, the company's financial technology business achieved revenue of 4.213 billion yuan, an increase of 1.57% over the same period last year. The company is deeply involved in the digital transformation of banks: 1) the company's traditional financial equipment business maintains the first market share, launching the first batch of Xinchuang products that have passed the adaptation verification and putting them into operation in six major state-owned banks; 2) scene finance has landed a number of projects, subdividing the scene has become a benchmark 3) form a digital RMB full-link solution: provide digital RMB smart teller machines for the Winter Olympic venues, win the bid for 6 banks' digital RMB core business system projects, and reach a strategic cooperation with the Hainan Branch of China Construction Bank to achieve the landing of the digital currency ecological operation project. With the promotion of financial innovation policy and the pilot promotion of digital RMB, the company's financial technology business can be expected in the future. Digital government affairs has become a benchmark case, which is expected to achieve regional expansion. During the reporting period, the company's urban intelligence business achieved revenue of 2.569 billion yuan, an increase of 13.52% over the same period last year, mainly benefiting from the high growth of digital government business. In 2021, the company successfully expanded into the field of digital government affairs: won the bid for Guangzhou "Sui Zhi Management" operation service project with 130 million yuan to build an urban brain to achieve efficient urban data exchange; following the wisdom audit project of Guangzhou Audit Bureau, the company successfully replicated the business to Zhuhai, Hangzhou and other places. The benchmarking case and replicability of the company's smart city project have been verified, and it is expected to take the Greater Bay area as the center and spread to the whole country in the future.

Investment advice: give an overweight rating. It is estimated that the company's income from 2022 to 2024 is 74.35 yuan 80.71 / 8.644 billion yuan, an increase of 9.63%, 8.55%, 7.10%, and 8.93%, 9.94% and 1.078 billion yuan, respectively, an increase of 8.32%, 11.35% and 8.39%.

Risk hint: the landing of digital government is not as expected; the promotion of financial innovation is not as expected.