Event: the company released its 20-year annual report and 21-year quarterly report: revenue reached 1.315 billion yuan in 20 years, an increase of 23.84% over the same period last year; the net profit of returning home was 134 million yuan, an increase of 23.54% over the same period last year. 21Q1 realized revenue of 392 million yuan, an increase of 84.70% over the same period last year, and a net profit of 11.8238 million yuan, an increase of 154.14% over the same period last year.
The overall business grew steadily, and the financial indicators remained basically stable: thanks to the steady growth of downstream customer demand and the continued improvement of the company's competitiveness, the company's revenue grew steadily by 23.84% in the past 20 years. In terms of business, revenue from technology development was 882 million yuan, up 26.73% from the same period last year; revenue from technical services was 391 million yuan, up 33.88% from the same period last year; revenue from consulting services was 30.79 million yuan, down 41.67% from the same period last year; revenue from system integration was 11.59 million yuan, a decrease of 45.69% over the same period last year, and the company's business structure was further optimized.
In the past 20 years, the company's gross profit margin fell slightly by 0.28 percentage points to 35.78%, which remained basically stable. During the 20-year period, the expense rate, sales expense rate, management expense rate, R & D expense rate and financial expense rate changed by-0.39,-0.57,-0.30, 0.45 and 0.03 percentage points respectively, and the expense rates remained basically stable. By the end of 2020, the total number of employees of the company was 6808, an increase of 31.38% over the same period last year, and the growth of personnel was faster than that of revenue, which will lay a good foundation for the rapid development of the company's revenue in the future.
Core product competitiveness is further enhanced: the company has enhanced its market competitiveness in these areas by continuously strengthening its research and development in credit, transaction bank, credit card, risk management, data center, intelligent marketing and PaaS platform, and successfully won a number of influential projects in the industry, such as China Construction Bank Corporation, Postal Savings Bank of China, China CITIC Bank Corporation, Ping an Bank, Guangfa Bank and Industrial Bank. The core credit card projects of China CITIC Bank Corporation, China Construction Bank, Bank of Communications and China Merchants Bank Bank, etc. At the same time, the company continues to increase the R & D investment in the basic platform and completes the transformation of the main products to "technology platform + business components". At the same time, the company has actively laid out in the field of distributed computing and Xinchuang, completed the transformation and upgrading of the main products and cloud computing, distributed computing and Xinchuang architecture, and completed the adaptation with Kunpeng, Feiteng and major domestic databases.
The company continues to optimize the customer structure to form a large bank-based revenue base: with rich industry experience and end-to-end professional service capabilities, the company has become a strategic partner of Jianxin Jinke. Over the past 20 years, we have continued to strengthen marketing in large banks, adding five strategic customers with assets of more than one trillion yuan, laying a good foundation for the rapid growth of the business. Over the past 20 years, the company has formed a revenue base dominated by large banks, and 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 percentage points over the same period in 19 years.
Profit forecast, valuation and rating: taking into account the company's continued efforts to strengthen research and development, the 21-22 net profit forecast is 1.95 yuan and 261 million yuan, respectively (11.36% and 9.06%, respectively). At the same time, the 23-year net profit is forecast to be 349 million yuan. It is optimistic that the company, as a bank IT leader, benefits from the improvement of the industry boom and the advantage of the company's card position, maintaining the "overweight" rating.
Risk hints: market competition aggravates risk, accounts receivable bad debt risk, working capital shortage risk, goodwill impairment risk, secondary IPO risk and so on.