Event: the company released its annual report. In 2020, China Holdings's core business scene empowered by big data integrated technology ushered in a full outbreak, with annual revenue of HK $19.82 billion, an increase of 12% over the same period last year: revenue from financial technology, industry big data scene (smart industrial chain) and urban big data scene (smart city) was HK $11.46 billion, 7.41 billion and 480 million respectively. Year-on-year growth rates of-1%, 38% and 46%, respectively Gross profit in 2020 was HK $3.36 billion, up 7 per cent from a year earlier, with gross margins of HK $2.06 billion, HK $880 million and HK $130 million, respectively: year-on-year growth rates of-2 per cent, 27 per cent and 73 per cent respectively. Net profit was HK $610 million, up 103 per cent year-on-year.
City big data scene: Yanyun DaaS data base helps to promote new infrastructure, smart city business to achieve high growth and high revenue. Yanyun DaaS can use general API to realize data fusion and sharing without source code, which greatly improves the efficiency of the project. Under the epidemic crisis, the advantage of getting through data quickly is highlighted and favored by investors:
Changchun state-owned capital injected 700 million yuan into the business. The country's active promotion of new infrastructure will expand the market demand for smart city construction, and it is expected that the project orders in this sector will continue to meet high growth next year. With the implementation of the urban CTO deep ploughing model, the cost is gradually reduced as expected, and it is expected that the business gross margin will continue to increase gradually.
Industry big data scene: big data drives intelligent logistics, releases the value of products and services in the whole supply chain, and acquires multi-industry leading customers. Relying on the "supply chain + big data + AloT" strategy and supply chain big data platform KingKooData, we actively and flexibly expanded online education, medical materials and other fields during the epidemic to achieve high-speed growth against the trend; highly coordinated with Smart City and Yanyun DaaS in 5G base station equipment, new energy equipment, new infrastructure and other areas of business layout. In the "double 11 Shopping Festival" in 2020, Kejie set a new industry record of 4.5 million single warehouse shipments, with strong technical strength, and is expected to continue the high growth trend in the following year.
Ecological coordination and business interaction to create a financial ecosystem: bank IT revenue to maintain a high scale, profitability highlighted.
China Information focuses on the field of financial technology, the performance of distributed application platform Sm@rtGalaxy3.0 is improved, the core system of financial institutions won the bid, the core competitiveness of end-to-end solution capabilities is expanded and the leading position in the industry is consolidated; by taking advantage of the "Belt and Road Initiative" policy to actively expand overseas markets, distributed platforms achieve agile delivery overseas for the first time. Take the lead in the release of blockchain platform Sm@rtGAS and digital currency DCEP solutions, highlighting the financial sector's ability to finance and innovate, and may seize the market in RMB digital applications. It is expected that the business synergy and scale effect will be enhanced, and profits will continue to grow steadily.
Profit forecast and investment advice. The 2021-2023 net profit is expected to be HK $760 million, HK $940 million and HK $1.18 billion respectively, corresponding to 13 times, 11 times and 8 times PE, respectively, with a "buy" rating.
Risk hints: Sino-US trade friction, macro-environmental instability risk; bank IT competition aggravating risk; new infrastructure policy change risk; China information account period risk; rising labor cost, etc.