Hang Seng Electronics (600570) In-depth report: Financial IT industry leader cloud transformation strategy helps achieve leapfrog development
The leading level is stable, continuous innovation improves core product competitiveness, and promotes the company’s performance growth.
Founded in Hangzhou in 1995, the company is a leading financial software and network service provider in China.
At present, many of the company’s core products have a market share of more than 70%, with wide technical barriers and through competitive advantages, the leader must be very stable.
The company achieved an unexpected growth in performance in 2018, mainly due to the new policies and regulations driving demand growth and the company’s personnel optimization and cost reduction.
The company has a well-known R & D investment, and the number of R & D personnel and R & D expenses are at the leading level.
At the same time, the company’s core employees’ participation in the “Innovative Business Subsidiary” plan also guarantees the company’s continuous innovation ability and further promotes the company’s performance growth.
A number of new financial policies have been introduced one after another, driving the continuous growth of financial IT demand, which has benefited the company.
At the same time, with the increasing demand for supervision and supervision technology, the need for upgrading and reforming financial IT systems has also emerged.
At the same time, new regulations on asset management, science and technology board, Shanghai-London Stock Connect, and access to external systems of securities firms are all the driving forces for financial IT demand.
The company currently has five major business needs, including changes in the financial system, the increase in financial products, the increase in financial customers, the need for product updates brought about by the development of IT technology itself, and the personalized needs of customers due to differentiated competition.
The long-term financial market is booming, and the number of financial institutions is increasing, which has led to more demand for financial IT services and software.
Traditional and innovative two-wheel drive, cutting-edge technology helps the company leapfrog development.
The expected overall assessment of the development of cutting-edge technologies such as cloud computing, big data, and artificial 深圳桑拿网 intelligence has introduced a number of encouraging policies.
The company keeps pace with the times, starting to adjust the business organization structure since 2013, and put forward the “Colorful Clouds” construction plan in 2014 to vigorously promote the company’s application in the Internet and cloud computing.
The 13 innovative subsidiaries established by the company have a good momentum of development. In 2018, 7 subsidiaries started to profit.
Among them, the investment robot developed by the subsidiary Whalt Network, Xiaowhing, is the world ‘s first live investment robot to work on CCTV two sets every day, helping small and medium pitchers to complete 5 million online teaching services, and at the same time Xiaowhing assists Tmall ElvesWith 1.1 million person-times of financial information services, it has opened up a whole new territory for the company’s development.
In addition, as of December 2018, the company has launched 16 artificial intelligence family products, and subsequent companies will continue to explore innovative products combining cutting-edge technologies such as blockchain, artificial intelligence, big data, financial engineering, high-performance computing, and so on.
Company profit forecast and estimation: We expect net profit attributable to mothers to be 6 in 2018-2020.
72 and 10.
52 trillion, the corresponding EPS is 1.
41 and 1.
70 yuan, the corresponding PE is 84.
62 and 50.
Compared with the estimated level of comparable companies, taking into account the estimated premium and market activity of the company’s leading companies to improve the overall industry measurement level, the company’s PE in 2019 will be 75 times, corresponding to a 6-month target price of 105.
75 yuan, maintain “highly recommended” level.
Risk warning: The policy implementation fails to meet expectations; the capital market environment fails to meet expectations; product research and development and service innovations fall short of expectations.