Hang Seng Electronics (600570) 2019 Third Quarterly Report Review: Fast Growth in Non-Profit Multi-Factor Overlays to Growth Drivers
The event company announced the third quarter report of 2019, and realized revenue of 2.3 billion during the period, an increase of 17%.
Achieved a net profit of RMB 80,000, an annual increase of 123%.
Realize deducted non-attribution net profit3.
2 ‰, an increase of 36% in ten years; from a single quarter, the company achieved 7 revenue in 2019Q3.
700 million, an increase of 28% in ten years.
Realize net profit attributable to mother 1.
300 million, an increase of 108% in ten years.
Realize deduction of non-attribution net profit 0.
6 ‰, an increase of 591% in ten years (a breakthrough in volatility caused by a small base in 18Q3).
A brief comment on the steady growth of various business lines, it is expected that the impact of the science and technology board on the brokerage and asset management business will continue in Q4.
By industry, in the first three quarters of 2019, the company’s brokerage business income was about 3.
300 million, an increase of 13% in ten years.
Revenue from asset management business is about 7.
9 trillion, a 26% increase in ten years.
Wealth business income is about 5.
300 million, an increase of 14% in ten years.
The exchange business income is about 0.
660,000 yuan, an increase of 5% in ten years.
Banking income is about 1.
600 million, a 10% increase in ten years.
Internet business income is about 3.
700 million, an increase of 14% in ten years.
Due to the average annual growth of the broker and asset management business income of about 200 million yuan, combined with the growth rate of the first three quarters and the judgment of the volume of a single business, the science and technology board confirmed part of the revenue in Q3, it is expected that Q4 will still have a considerable percentage of revenue recognition,In the fourth quarter, all business lines will maintain steady growth.
The upgrading of core products, the opening of the financial industry to the outside world, financial innovation and policy changes, and China-Taiwan strategic business support continued to grow revenue.
Looking at 2020?
In 2021, multiple factors will drive the company’s business growth, mainly from: (1) UF3.
0, O45, etc. are based on JRES3.
0After the new product of the new distributed architecture is launched, it will start a new wave of upgrades in financial institutions such as securities dealers and asset management, especially when faced with the daily trillion-level transaction volume and the old system architecture.Demand is rigid and is expected to be replaced in financial institutions in the next few years.
At the same time, considering that there are no new competitors before, the company is expected to further increase the city’s share; (2) The pace of opening up the Chinese financial market has significantly accelerated since this year. In May,武汉夜网论坛 the CBRC proposed 12 new opening policies and measures.Eleven new open policies were clarified once again, and in October the State Council gradually opened up the revised provisions of relevant management regulations.
In 2020, the restrictions on the proportion of foreign investors in securities companies, funds, and futures companies will be gradually phased out. In the future, more joint ventures / foreign financial institutions will be established, which will quickly bring demand for financial business systems;New rules and innovations such as new rules for trust, acceptance of the three parties (opinion draft), and continuous innovation, the internal capital market is still at a high-speed development stage, and there will be more and more financial informationization needs in the future;The system takes “OnLine” as the keynote, and concurrently outputs technology middle stage, business middle stage, data middle stage, innovation and traditional business departments to further coordinate adjustment.
As a leading company in the industry, in addition to providing IT products, the company also enables industry innovation and personalized development in a platformized manner, which will drive more sustainable revenue growth.
Expected expenses will remain at a controllable level, and the long-term deduction of non-net profit will grow rapidly.
In the first three quarters of 2019, the company’s research and development expenses were about 10.
40,000 yuan, an increase of 18 in ten years.
8%, R & D expenses 45.
7%); selling expenses are about 7.
2 ‰, an annual increase of 17%, sales expenses expenditure 31.
3% (31 in the same period last year.
3%); management costs are about 3.
200 million US dollars, an annual increase of 12%, management expenses 14% (14 in the same period last year.
It is expected that the company’s personnel growth will be relatively stable in 2019.The company’s continuous expenditure on research and development will contribute to large-scale revenue in business areas such as Zhongtai, AI, cloud products, and blockchain.There is room for decline, which brings high growth in non-net profit.
We continue to be optimistic about Hang Seng’s core competitiveness in the non-bank financial institution informatization industry. Due to policy changes in the short to medium term, downstream increases (internal increments and overseas markets + financial opening up), innovation penetration, and product architecture upgrades continue to drive growth. FintechProducts increase ARPU value, medium- and long-term financial PaaS platforms, SaaS products, blockchains, etc. provide explosive growth potential.
Expected company 2019?
2020 revenue is about 39.
500 million, 5 billion, net profit attributable to mothers was 8 respectively.
900 million, 12.
40,000 yuan, maintain “Buy” rating.