Depth-Company-Hang Seng Electronics (600570): Three Aspects beyond Performance

Depth * Company * Hang Seng Electronics (600570): Three Aspects beyond Performance

On March 30, the company released its 2018 annual report: revenue of 32.

600 million, an increase of 22 per year.

4%, net profit 6.

500 million, an increase of 37 every year.


Maintain BUY rating.

Key points of the support level High performance growth was in line with expectations.

The performance is consistent with the scope of the notice, in which the net profit level is close to the upper limit of the notice (6.

5.9 billion).

Realize deduction of non-net profit5.

200 million, an increase of 142.

8%, a record growth rate.

The overall gross profit margin increased by an average of 0.

48 points to 97.


The main business software sales revenue increases by 23 every year.

6%, of which Internet business increased by 69.

0%, wealth business increased by 43.


The prosperity of the downstream industry in 2019 is obviously better than in 2018, and it is expected that customer demand and IT investment will rapidly increase.

Point one: the space for new trading system requirements.

The Science and Technology Innovation Board was officially launched in 2019, and the reporting companies were accepted and inquired one after another.

The new trading market will first affect 131 securities dealers and exchange systems, and according to the 2 million module fee and the ten million-level transaction system construction fee expenditure, it may drive 3 trillion spaces during the year, coupled with the demand for new systems such as Shanghai-London Express / CDRCompared with the income generated in 2018, the elasticity can exceed 10%.

Point two: Overseas business doubled in growth.

Overseas income in 20181.

7 ‰, a 90% increase in ten years, and gross profit margin increased by 11.

3 units.

During the year, the company acquired the remaining 41 of Great Wisdom (Hong Kong) Investment Holdings Limited.

75% equity; joint venture with Nasdaq company IHS Markit under Ipreo.

The high growth rate of overseas business will play a more important role.

Aspect 3: Look at the new business model from the development of Ant Fund.

The company shares in Ant Ant (Hangzhou) Fund Sales Co., Ltd. (“Ant Fund”) 24.

1% equity, the annual report shows that the Ant Fund has realized revenue of 1.4 billion and net profit of 2225 million.

According to the fund announcement, Bank of Communications Schroder, Huaan, Wanjia, Dacheng, Rongtong and other internal funds have added Ant Funds as an off-site sales agency or implemented discounts on fees.

The fund sales model may 杭州桑拿网 open up the company’s diversified business model.

Estimated for 2019?
Net profit in 2021 is 8.

200 million, EPS is 1.



13 yuan (adjusted for 2019 based on annual report revenue)
2020 forecast -12?
-3%), corresponding to 62/50/41 times PE.

We are optimistic that the company’s performance during the rising period of the industry will usher in explosive growth, and maintain a BUY rating.

The main risks faced by the rating are that the new trading system demand is less than expected; the cost control is less than expected.