Investment events: on August 24, the company released its 2022 semi-annual report. In the first half of 2022, the company achieved operating income of 898 million yuan, an increase of 15.09% over the same period last year, a net profit of 27 million yuan, a decrease of 64.48% over the same period last year, and a non-return net profit of 16 million yuan, a decrease of 56.03% over the same period last year.
The company's performance in the first half of the year was under pressure due to the repeated impact of the epidemic. During the reporting period, the company's revenue was 898 million yuan, an increase of 15.09% over the same period last year, which was slower than that of the same period last year, mainly due to repeated epidemics in the first half of 2022, which affected the progress of the company's projects. However, from a single quarter, the company's Q2 main revenue of 453 million yuan, an increase of 16.69% over the same period last year, an increase compared with Q1, reflecting the resilience of the company's revenue growth. Under the effective control of the epidemic, the company's performance is expected to pick up in the second half of the year. In terms of products, revenue from technology development products was 571 million yuan, up 14.61 percent from the same period last year; revenue from technical services products was 307 million yuan, up 45.46 percent from the same period last year; and revenue from consulting services products was 16.84 million yuan, down 25.84 percent from the same period last year. The company's two major product sectors still maintain a momentum of steady growth. Specific to the business line, projects have been implemented in the company's main areas of credit card business, financial risk management and data business, among which credit card business helps a state-owned bank's credit card core system to complete full business switching online; financial risk management companies have implemented projects at home and abroad Dozens of related cases were implemented in the field of data business during the reporting period, which has become an important promoter of financial technology to a higher level.
Gross profit margin continues to rise, and R & D investment and share payment affect the profit performance of the current period. During the reporting period, the company's gross profit margin was further increased to 33.07%, an increase of 2.13% over the same period last year, and basically returned to the level of the same period in 2020 (33.44%). In the same period, the company's management expenses reached 75.86 million yuan, an increase of 87.43% over the same period last year, mainly due to the payment of 24.22 million yuan for new shares. In terms of R & D investment, the company continued its high R & D investment. In 2022, H1 R & D investment reached 150 million yuan, an increase of 45.14% over the same period last year, far higher than the income growth rate, accounting for 16.7% of operating income. It mainly increased investment in bank IT solutions and cloud computing, providing conditions for enhancing the core competitiveness of the market.
The banking IT industry maintains a high boom, the company's products are in the forefront of the market, and actively build cloud solutions. Driven by the two-wheel drive of financial innovation and digital transformation, the domestic bank IT market remains high. According to the "2021 Bank of China Ltd. Industry IT solution Market share Analysis report" released by Sadie consultants, the market size of banking IT solution market reached 47.959 billion yuan in 2021, an increase of 24.7% over the same period last year. It is expected to reach 139.011 billion yuan in 2026, with an average annual compound growth rate of 23.55% from 2022 to 2026. According to the report, the company ranks fourth in the overall market rankings. In terms of market segments, the company's credit card and transaction banking solutions rank first, and credit management systems, risk management and other solutions market steadily ranks in the top three in recent years, highlighting the company's profound technical strength in the industry. At the same time, Sadie consultants pointed out that the financial cloud services market will be 5.2 billion yuan in 2021, accounting for 10.85% of the banking IT solution market, and will maintain a high growth trend in the next few years. While consolidating its market position, the company actively lays out new business directions such as cloud ecology in line with the industry trend, and now provides small and medium-sized banks with a comprehensive cloud solution from SaaS layer to IaaS layer, and currently includes financial cloud, industrial and financial cloud and data cloud in SaaS layer, enabling digital transformation of banking and related industries, and providing new growth points for company performance.
Investment advice: due to the impact of the epidemic in the first half of 2022, the company encountered great resistance to its business development. Based on this, we adjusted our revenue and profit forecasts for 2022 and 2023, and added our 2024 forecast. We estimate that the company's revenue in 2022-2024 will be RMB 2.024 billion (the original forecast for 2022 and 2023 is RMB 2.509 billion), the net profit of homing will be RMB 1.06 million (the original forecast for 2022 and 2023 is RMB 234 million), and the corresponding PE will be multiple of 48-36-29, maintaining the company's "Buy" rating.
Risk reminder events: business development is not as expected, policy progress is slow, and the epidemic is repeated on a large scale again.
