Main points of investment
L the leader of the Internet bank, leading the bank to the Internet for 20 years. Kelan Software is the leader in Internet banking solutions in China. The company was established in 1999 and listed on the gem of Shenzhen Stock Exchange in 2017. Kelan Software mainly provides online software products, electronic payment technical services and a package of solutions based on Internet technology to financial institutions dominated by banks. In 2019, the company achieved a total revenue of 934 million yuan, an increase of 23.98% over the same period last year, and a net profit of 49.51 million yuan, an increase of 16.28% over the same period last year.
The vanguard of channel business is taking advantage of the tide of Internet banking. With the rich variety of business of banks and other financial institutions and the continuous strengthening of the trend of informationization and Internet of banking business, the overall IT investment scale of China's banking industry is growing. In the market segment of bank IT solutions, Colin software products have achieved full coverage of channel, business and management, of which channel business ranks first. With the development of 5G network and the popularity of the market, banks will be transformed into multi-channel Internet banks, and Colin software, which specializes in Internet finance, will usher in a new round of development opportunities.
L acquisition of high-end memory database, Nuggets create a huge market. SUNJE SOFT is a mature Korean enterprise dedicated to the research and development of in-memory distributed database products, which have breakthrough innovation and advantages in the field of data processing with high concurrency and real-time transactions. In December 2018, Colin Software completed its acquisition of SUNJE SOFT, a distributed memory database. From bank IT to operators and other "eight major industries" expansion, Kelan software is actively deploying domestic Xinchuang major races through database products.
Profit forecast and investment advice: the company's net profit from 2020 to 2022 is expected to be 0.86,1.71 and 337 million yuan respectively, and the corresponding PE is 121.5x, 61.3x and 31.1x respectively (as of July 10 closing).
Be given a rating of "prudent overweight".
Risk tips: 1. Bank IT investment scale is lower than expected. 2. Competition in the industry where the company is located intensifies. 3. GOLDILOCK database promotion is not as expected.