I. Overview of events
On April 26, 2021, the company released its quarterly report for 2021, with revenue of 390 million yuan, an increase of 84.7% over the same period last year, and a net profit of 11.823 million yuan, an increase of 154.14% over the same period last year. Non-parent net profit was 7.508 million yuan, an increase of 133.9% over the same period last year.
II. Analysis and judgment
There has been a double increase in revenue and orders, and profit margins have rebounded by a large margin.
Revenue and orders achieved double high growth. The revenue side has achieved rapid growth, while in-hand orders increased by 110.12% in the first quarter of 2021 compared with the same period last year. The company closely follows the development direction of the bank IT, while ploughing large bank customers, the demand side maintains a high bearing.
The increase in gross profit margin by 13 percentage points led to a significant rebound in overall profit margins. The company's 2021Q1 gross profit margin is 29.99%, 13.01% higher than the same period last year, and the net profit rate is 13.44% higher than the same period last year. The substantial increase in profit margin led to an increase in the company's net profit.
The increase in R & D expenses reflects that the company attaches great importance to R & D. On the expense side, the rate of sales and management expenses of the company was 5.3% and 4.5%, both of which were lower than that of the same period last year. In terms of R & D expenses, the company invested 53.1235 million yuan in R & D expenses during the reporting period, an increase of 118.03% over the same period last year, and the rate of R & D expenses increased by 2%. Withdraw the company's attention to R & D.
The cooperation of large banks continues to deepen and lay the foundation for development, and the multi-point layout of financial science and technology contributes to the long-term growth and landing of a number of large-scale projects, and cooperation continues to deepen. In 2020, the company landed a number of large bank projects, including the credit system projects of China Construction Bank, Postal savings Bank, CITIC Bank, Ping an Bank and other banks, and the credit card core projects of CITIC Bank, China Construction Bank and other banks. The income of bank customers with assets of more than one trillion yuan accounted for 63.05% of the operating income, accounting for an increase of 12.91% over the same period last year. In the future, large banks will be the main force in the transformation of financial information innovation, financial technology and other IT. The company's focus on developing large bank customers will help to undertake more financial technology construction needs in the future.
Through overseas investment, the establishment of subsidiaries and other means of distribution of financial innovation, small and medium-sized banks financial IT construction and other fields. 1) in the aspect of financial innovation, the company lays out the layout in the fields of financial consulting and technical services by setting up joint ventures and other ways.
At the same time, the company began to lay out the ecological construction of mobile applications for party, government and military customers. 2) in terms of financial cloud, through the establishment of Beijing Jinshi Hongcheng Technology Co., Ltd., the company has created an aPaaS technology platform to provide technical support and services for enterprise SaaS applications on the cloud. 3) in terms of financial IT construction of small and medium-sized banks, the company has gradually carried out business in the field of financial technology industrial chain construction of small and medium-sized banks through the purchase of shares in Shun Hengtong, and Heshun Hengtong's financial cloud platform has been connected to 66 village banks, which can provide banks with the basic business of a complete set of system hosting solution. The competition in the field of financial IT is fierce, and the expansion of new segments will help the company to create new growth points and promote the company's long-term growth.
III. Investment suggestions
The company is a leader in the field of financial IT, and is expected to benefit from the development of financial innovation, digital currency and other fields. at the same time, its cooperative relationship with large banks continues to deepen, and long-term growth is expected. It is estimated that the EPS of the company from 2021 to 2023 is 0.89,1.2,1.58 yuan respectively, and the corresponding PE is 41x, 30x and 23x respectively. Select the leading financial IT companies Hang Seng Electronics, Changliang Technology and China Information as comparable companies, and the average PE (Wind of relevant companies in 2021) is 43X, which is lower than the average valuation of the same industry. At the same time, taking into account the company's development prospects in digital currency, financial Xinchuang and other fields, as well as the continuous expansion of large bank customers, it is covered for the first time and given a "recommended" rating.
Fourth, risk tips:
Competition in the IT field of banks has intensified, and the progress of financial innovation has been less than expected.
