Incident: The company released its 2012 annual report. The company's revenue for the first half of the year was 2,023 billion yuan, up 17.05% year on year; net profit of 150 million yuan, up 43.05% year on year; net profit after deducting 139 million yuan from non-return home, up 49.47% year on year. Among them, in 2023Q2, the company's main revenue was 1,023 million yuan, up 14.26% year on year; net profit of KIMU was 889.30 million yuan, up 10.13% year on year; net profit after deducting non-net profit of 854.22,200 yuan, up 17.83% year on year. The company's revenue and profit are growing steadily.
The IT service business is growing rapidly, and the business process outsourcing sector is expected to experience a rebound. The company's IT service business achieved revenue of 1,312 billion yuan in the first half of the year, an increase of 21.60% over the previous year. The company adheres to its commercialization strategy, continues to vigorously develop software products and solutions, create a second growth curve, and achieve revenue of 429 million yuan, an increase of 33.30% over the previous year, accounting for 21.20% of the company's total revenue. The business process outsourcing sector achieved revenue of 711 million yuan, an increase of 9.50% over the previous year. Among them, the customer service and digital marketing product line achieved revenue of 300 million yuan, an increase of 0.88% over the previous year. It is expected that the future will further rebound as the economy recovers, thus driving the sector's overall revenue back to a normal growth channel.
The company's cornerstone is stable customers, continues to make efforts to small and medium-sized banks, and continues to expand customers. The company's revenue from the six major state-owned banks accounted for 59.96% of total revenue, up 16.55% year on year; revenue from 12 joint-stock commercial banks accounted for 18.30%, up 25.34% year on year; revenue from small to medium banks accounted for 8.70%, up 30.06% year on year. The company mainly uses products and solutions as breakthroughs to accelerate penetration into small and medium-sized banks, non-bank financial institutions, and non-financial institution customers.
In the first half of the year, the company added 23 new customers, including 5 small to medium banks, 12 non-bank financial institutions, and 6 non-financial institutions.
The financial IT boom continues, and the company has sufficient orders on hand, while maintaining a high level of R&D innovation and refined internal management. The wave of digital transformation of banks is on the rise, and the creation of financial credit is being accelerated across the board under policy guidance. As of June 30, 2023, the company's information technology service sector has signed a contract amount of 7.787 billion yuan, an increase of 38.84% over the previous year. Sufficient orders have laid a solid foundation for the company's subsequent development. The company's R&D investment accounted for 9.64% of revenue in the first half of the year, keeping the R&D investment growth rate not lower than the revenue growth rate. The company's self-developed enterprise digital management system (EDM system) has continuously improved the company's management efficiency. The company's management expenses rate and sales expense ratio in the first half of the year were 3.20% and 1.59% respectively, which continued to decline and were lower than the industry average.
Profit prediction: The company once again verifies growth sustainability with steady and excellent revenue and profits. In the future, the company is expected to fully benefit from the bank's digital transformation combined with financial innovation. The company's revenue for 23-25 is estimated to be 4398/53.33/6468 billion yuan, and net profit to parent is 368/460/582 million yuan. Covered for the first time, giving it a “buy” rating.
Risk warning: Macroeconomic recovery falls short of expectations; financial credit and innovation progress falls short of expectations.