Hang Seng Electronics (600570)： Q2 performance can be expected to improve long-term performance
Hang Seng Electronics (600570): Q2 performance can be expected to improve long-term performance
This report reads: The company’s first-half performance has grown steadily, and the growth rate of revenue and non-net profit in the second quarter have improved from the previous quarter. Among them, wealth and banking growth have been dazzling. It is expected that technological upgrades and gradual acceptance of the science and technology board will drive growth in the second halfaccelerate.
Investment Highlights: Maintain “Overweight” rating and raise TP to 93.
The company achieved revenue of 15 in the first half of 2019.
24 ppm, an increase of 11 years.
97%; net profit achieved 6.
780,000 yuan, an increase of 125 in ten years.
85%, in line with market expectations.
The company’s R & D investment in the first half of 20196.
73 ppm, an increase of 19 years.
20%; we maintain the company’s eps for 2019-2021.
88 yuan, the average PE (TTM) of comparable companies is 104, we give the company 70 times PE in 2019, raising the target price to 93.
1 yuan, maintaining the “overweight” level.
The main business developed steadily, and the wealth and banking business performed well.
Benefiting from the growth of the existing business and the increase in market share, the company’s wealth business achieved revenue in the first half of 20193.
79 ppm, an increase of 27 per year.
08%; Banking business was mainly stimulated by market demand for cash management, asset pools and platform connectivity, achieving revenue of 1.
13 ppm, an increase of 28 in ten years.
The brokerage and asset management business is expected to accelerate in the second half of the year.
The company’s brokerage business and asset management business developed slowly in the first half of the year, and the transitional science and technology board project was gradually accepted in the second half of the year, which will drive the accelerated development of brokerage business and asset management business.
The positive environment brought by the recovery of the industry environment is also expected to be further released in the second half of the year, which will bring stronger growth momentum to brokerage, asset management and other businesses.
Continuous investment in research and development, and product and technology innovation to maintain competitiveness.
The company’s R & D expense 天津夜网 ratio in the first half of 2019 was as high as 44.
2%, an increase of 0 compared with the same period last year.
As an industry-leading fintech company, innovation in technology and products is its core competitiveness. The company comprehensively promotes the online transformation of the technology architecture, forming a technology platform, a data platform, and a business platform. The product organization structure is upgraded, and the city ‘s land area will be gradually increased in the future.Rate, expand new markets, and drive steady growth in company performance.
Risk reminders: 1) policy and regulatory risks; 2) increased competition in the industry.