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Hang Seng Electronics (600570) commented: Long-term performance growth exceeded expectations Financial cloud strategy further advances

Event: The company released its 2019 annual performance forecast, which is expected to achieve a net profit attributable to shareholders of listed companies of approximately 12.

90 to 13.

42 ppm, an annual increase of about 100% to 108%; it is estimated that the net profit to achieve alternative non-recurring gains and losses attributable to shareholders of listed companies is about 7.

74 to 8.

15% ten percent, an increase of about 50% to 58% a year.

Opinion: The long-term operating performance exceeded expectations, and the capital market is in a good shape.

The lower limit of the company’s performance forecast return net profit to the mother 12.

90 trillion is slightly higher than our Air Force’s forecast of 11.

$ 14 trillion, of which, the estimated impact of non-recurring gains and losses on net profit in 2019 is approximately 5.

17 to 5.

28 ppm, which is not much different from the non-recurring profit and loss amount due to the adjustment of accounting standards announced in the third quarterly report. We have already considered this non-recurring profit and loss in the forecast, so the part that exceeded expectations came from the growth of operating performance.

The initial growth in performance was higher than expected due to the continuous market transformation requirements brought about by the new capital management regulations and the new orders for science and technology boards that had previously landed. The revenue was concentrated in Q4, driving the company’s main business revenue to grow rapidly.

In addition, the activity of the capital market is generally improving, which provides a good development environment for the company’s various business lines.

The company’s release of cloud products will 佛山桑拿网 become a financial enabler for the cloud.

On December 12, 2019, Hang Seng and Alibaba Cloud reached a cooperation to jointly release NewCloud financial solutions in the financial field.

The cooperation will converge the company’s business accumulation in the financial field and Alibaba Cloud’s core technical capabilities, break through the technical limitations of cloud computing in the financial field, and help the financial industry achieve cloudification.

In the new round of market growth, the company is expected to take the lead in the cloud computing market share in the financial industry and share the industrial dividend.

The blockchain policy is favorable, and new products continue to land.

The performance of General Secretary Xi Jinping during the study of the host should take the blockchain as an important breakthrough in independent innovation of core technology, clarify the main attack direction, increase expansion, focus on overcoming key core technologies, and accelerate the promotion of blockchain technology and industrial innovation.development of.
In 2019, the company’s blockchain new product launch conference launched four blockchain products: HSL2.

0 platform, Fantai Chain (FTCU), trade finance platform and supply chain finance blockchain service platform.

As a leader in financial technology, the company is actively deploying in the field of blockchain to promote the continued landing of emerging products.

Company profit forecast and estimation: It is estimated that the revenue in 19-21 will be 42.

34, 53.

98 and 68.

1.4 billion, net profit attributable to mothers was 13 respectively.

02, 15.

72 and 18.

66 ppm, corresponding to EPS-latest dilution of 1.

62, 1.

96 and 2.

32 yuan, the corresponding PE is 53.

91, 44.

65 and 37.

62 times, giving the company a PE of 55 times in 2020, corresponding to a 6-month target price of 107.

80 yuan, maintain the “highly recommended” level.

Risk Warning: The policy falls short of expectations; the capital market environment falls short of expectations; product research and development and service innovation fall short of expectations