Hang Seng Electronics (600570) Third Quarterly Report Review: Asset Management Drives Growth and Layouts Frontier Technologies
Event: Event: The company announced the 2019 third quarter report, reporting and realizing operating income23.
0 million yuan, an increase of 17 in ten years.
0%, realizing net profit attributable to mother 8.
0 million yuan, an increase of 122 in ten years.
9%, net profit after deducting non-return to mother3.
20,000 yuan, an increase of 36 in ten years.
The overall performance was in line with market expectations.
Key points of investment: The income side is good, and the demand for asset management system reform continues to expand.
The company’s operating income for the first three quarters was 23.
0 ppm, an increase of 17 per year.
0%, in which the third quarter revenue growth reached 28.
4%, the income presentation quarter accelerated acceleration trend.
In terms of split business, the revenue of the asset management business reached 7 in the first three quarters.
9% ten percent, an annual increase of 26.
4% is the main driving force for growth. It is judged that the new regulations on capital management are bringing continuous expansion of system transformation needs. At the same time, it is expected that bank wealth management subsidiaries will also contribute a certain increase.
In addition, due to the large number of orders for science and technology board that were previously launched in the third and fourth quarters, we believe that the company’s high quarterly growth is expected to continue.
In addition, the first level is that the company achieved net profit in the first three quarters.
0 trillion, the annual growth rate is as high as 122.
9%, far higher than the growth rate of revenue, mainly due to changes in fair value gains and losses and investment income4.
900 billion non-recurring gains and losses.
The cost is stable, and the three-level R & D system has many highlights.
The company’s selling expenses for the first three quarters were 7.
2 ten percent, an increase of 17 per year.
0%; administrative expenses are 3.
2 ten percent, an increase of 11 per year.
8%; R & D expenses are 10.
Four ten percent, an increase of 18 per year.
On the whole, the single-quarter sales expense level in the third quarter remained consistent with the growth rate in the first half of the year, and the performance of the expense side was relatively stable.
In terms of R & D, the company’s R & D expenses accounted for 45% in the first three quarters.
4%, continue to lead the highest, becoming the key to support the Hang Seng three-level R & D system.
The so-called three-level system: a) The Hang Seng Research Institute continues to advance cutting-edge technological innovations such as blockchain, efficient computing, artificial intelligence, FLY quantification terminal and UFT2.
0 platform is constantly optimized; b) the R & D center focuses on technology platforms and long-term platforms, and cooperates with Ant Financial to launch a new generation of JRES3.
0 technology platform a series of cloud service architectures; c) business departments to meet customer needs, promote the construction of financial large and medium-sized Taiwan, UF3.
0, one-stop asset management platform O4 and other first-line products continue to iterate.
Innovative subsidiaries are exhibiting rapidly and Internet business is expected.
The company merged and established a wide range of subsidiaries to carry out Internet innovation business, some of which were quite bright in the third quarter.In the first half of the year, subsidiary Wing Teng Network had revenue of 2978.
5 million US dollars, almost doubled, and gradually narrowed gradually; there have been more than 2,000 GTN platform registration agencies, and at the same time, OPEN API service connection institutions have grown rapidly and synchronously; an integrated private equity solution created by the subsidiary Yunji and Securities InvestmentOplus is launching heavily and is expected to open the private cloud product market.
The blockchain field has long been laid out, and policy dividends create potential.
Recently, blockchain has been promoted as the core technology and independent innovation area promoted by the national budget.
With the advent of the blockchain chain, the company’s early technology accumulation in this field may show results.
At present, the company has a total of 9 patents in related fields, of which more than two are mature: a) Financial Alliance Chain HSL, a decentralized PaaS platform serving financial institutions, which can quickly build blockchain systems for institutions.Finance, supply chain and other application scenarios.
In December 2018, the China Trade and Finance Cross-Banking Blockchain Platform led by the China Banking Association was officially launched. Its letter of credit and forfaiting business are supported by HSL.
b) Fantai Chain FTCU, mainly connected with relevant Internet courts, notary offices and other public trust institutions, currently supports the connection of contract chain, private equity chain and other business scenarios.
Investment advice and profit forecast: The company as a whole is in a leading position in the domestic financial IT field, with a complete product line covering leading financial institutions and a leading innovative business layout.
Against the background of the current deepening reform of the capital market, the company has benefited from a comprehensive policy dividend, with high growth and flexibility.
As such, the company’s outstanding research and development strength can ensure the large-scale commercial technology conversion while taking into account the in-depth mining of cutting-edge technologies. The accumulation of technology in the field of blockchain technology may open up new business space in the future.
It is estimated that the company’s operating income for 2019-2021 will be 41.
600 million, net profit attributable to mothers were 10.
4 billion / 13.
200 million, the EPS is 1.
It is 61 yuan, which is 63/58/50 times for normal year PE, maintaining the “overweight” level.
Risk reminder: the risk of the company’s performance is less than expected, the risk of the 杭州桑拿 financial innovation policy is not as expected, the risk of the progress of the innovation business is less than the expected, and the systemic risk of the market