Hundsun(SH:600570) Xinda Securities·2024-03-25 16:00Investment Rating - The investment rating for the company is "Buy" with the previous rating also being "Buy" [1]. Core Views - The company achieved a revenue of 7.281 billion yuan in 2023, representing a year-on-year growth of 11.98%. The net profit attributable to shareholders was 1.424 billion yuan, up 30.50% year-on-year, while the net profit excluding non-recurring items was 1.448 billion yuan, an increase of 26.55% year-on-year. The operating cash flow net amount reached 1.261 billion yuan, growing by 10.82% year-on-year. The gross profit margin was 74.84%, an increase of 1.28 percentage points year-on-year [1][2]. Financial Performance - In Q4 2023, the company reported a revenue of 2.914 billion yuan, a year-on-year increase of 5.36%. However, the net profit attributable to shareholders decreased by 24.29% year-on-year to 818 million yuan, while the net profit excluding non-recurring items was 911 million yuan [1]. - The company’s revenue by product line in 2023 included: - Wealth Technology Services: 1.734 billion yuan, up 4.27% year-on-year - Asset Management Technology Services: 1.712 billion yuan, up 9.27% year-on-year - Operations and Institutional Technology Services: 1.436 billion yuan, up 14.32% year-on-year [1]. - The company maintained a focus on refined operations, with revenue growth outpacing overall expense growth. Total expenses for sales, management, and R&D were 4.204 billion yuan, a year-on-year increase of approximately 9.68% [1]. Future Earnings Forecast - The company is projected to have earnings per share (EPS) of 0.93 yuan, 1.06 yuan, and 1.23 yuan for the years 2024, 2025, and 2026, respectively. The corresponding price-to-earnings (P/E) ratios are expected to be 25.79, 22.53, and 19.40 [2][3]. Market Position - The company is recognized as a leading player in the domestic financial IT sector, ranking 22nd globally and 1st in Asia in the 2023 IDC Fintech rankings [2].