share_log

长亮科技(300348):短期利润承压 现金流现改善拐点

Changliang Technology (300348): Short-term profits are under pressure and cash flow is improving at an inflection point

中金公司 ·  Aug 26, 2023 00:00

Changliang Technology's 1H23 performance is in line with our expectations

1H23's revenue was 749 million yuan, +9.91% year on year; net profit of 100 million yuan, affected by rising labor costs and 17 million yuan of equity incentives and amortization expenses, -246.6% YoY. Excluding the impact, net profit of GMU was 07 billion yuan, +3.2% year on year; net profit after excluding influence, -070 million yuan, +3.2% year on year; net profit not attributable to parent - 316 million yuan, -612.1% year on year. 2Q23 revenue was 453 million yuan, +11.82% year on year; net profit attributable to mother - 04 million yuan, -125.2% year on year; net profit after deducting non-return net profit - 09 billion yuan, -159.4% year on year. Performance was in line with expectations.

Development trends

The multi-bank project was successfully launched during the reporting period, and Mcore products will be a new overseas growth point.

1) On the revenue side, 1H23 digital financial business/big data solutions/comprehensive value management solutions revenue was 471/2.37/41 million yuan, +12.1%/+4.0%/+22.36%, and overseas business 1H23 achieved revenue of 50 million yuan, -40.6% year-on-year. For product refinement until the order conversion period, the company won local banking projects during the reporting period, and plans to use Mcore products as a growth point for overseas business within 2-3 years.

2) On the profit side, 1H23 gross profit margin was 36.3%, year-on-year -3.17ppt; 2Q23 gross profit margin was 36.6%, year-on-year -2.5ppt; the 2022 project carried over to 1H23. Major bank projects were disrupted by the epidemic, and implementation margin was low. 1H23 digital finance/big data/full finance value chain business gross margin was 37.8%/33.7%/34.9%, respectively, year-on-year -4.7/-1.7/+5.3 ppt.

3) On the order side, cash flow was optimized, and the company increased its repayment efforts. 1H23 sold products to provide labor services and received 632 million yuan in cash, +56.7% over the same period. The company deepened its base of large banks while expanding the advantages of urban commercial banks. 1H23 won bids for nearly 30 banks' big data projects and entered the new field of credit reporting for the first time. During the reporting period, customers such as Bank of Jilin, Bank of Guangzhou, and Bank of Huzhou completed the launch of data warehouses, CRM, and core systems, and won bids for major customers such as Agricultural Bank, Bank of Shanghai, Bank of Sichuan, Bank of Everbright, and Shaanxi Coal & Chemical Group.

A fixed increase supplements cash flow and empowers enterprises to transform digitally and intelligently. The company announced a fixed increase plan on July 25. It plans to raise no more than 580 million yuan in total capital for the construction of a financial business system, a “Nebula” integrated digital intelligence platform, and a cloud native platform. In terms of ecological cooperation, during the reporting period, the company joined the Huawei GaussDB database financial industry ecosystem development plan, and jointly released the new financial distributed core solution 3.0, as well as the modern core mCore and digital core iCore dual-core solutions for overseas markets, and continued to deepen the financial scene.

Profit forecasting and valuation

We have kept our earnings forecasts for 2023 and 2024 largely unchanged. Maintaining an outperforming industry rating and target price of 14 yuan, corresponding to 52 times the 2024 P/E, 35.5% upward space compared to the current stock price, and the current stock price corresponding to 38 times the 2024 P/E.

risks

The promotion of overseas business fell short of expectations, and the distributed transformation of core systems fell short of expectations.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment