Hang Seng Electronics (600570): Q4 deducted non-attribution net profit exceeds expected profit end elasticity began to emerge

Hang Seng Electronics (600570): Q4 deducted non-attribution net profit exceeds expected profit end elasticity began to emerge

Event: The announcement said that in 2019, it is expected that the net profit attributable to mothers will be about 129074 to 13.23237 million yuan, an annual increase of about 100% to 108%; it is expected that the non-net profit attributable to mothers will be about 77361 to 81486 million yuan, an increase of about 50% to 58%.

Key points of investment Following the acceleration of the income quarter in Q3, the profit side also began to perform. In Q4, the net profit after deducting non-attribution to mothers exceeded expectations.

The company expects that the impact of long-term non-recurring gains and losses 武汉夜生活网 on the company’s net profit will be approximately 51,713 to 52,751,000,000 yuan, which is mainly due to the implementation of the new financial instrument accounting standards implemented by the report, the increase in fair value gains from financial assets held by the company, and the disposal of transactionsThe gains from sexual financial assets increased.

According to the notice, the company’s net profit attributable to its parent in the fourth quarter of 20194.


3.8 billion, an annual increase of 71-89%; net profit after deducting non-attribution4.


98 ppm, a year-on-year increase of 61-76%, Q4 net profit attributable to mothers and net profit attributable to non-mothers compared to Q3 (1.

25, 0.

6 billion), the second quarter (2.

81, 2.

2 billion), the first quarter (3.

98, 0.

3.6 billion) The average growth was obvious, the highest in the year.

The official company released three quarterly reports, and Q3 single-quarter revenue has begun to accelerate. We believe that it is reflected by the rebound of the capital market, the establishment of science and technology board, the implementation of new asset management regulations, and the establishment of affluent brokerages.

This time, the profit side began to accelerate and exceed expectations. We believe that the company’s Q4 revenue side growth is still expected to accelerate, and the positive impact of the income side and profit side brought by the policy side is expected to continue into 2020.

Innovative business continues to make breakthroughs, and future space is expected.

In the Internet business, the current subsidiaries with a high percentage of revenue are Juyuan, Whale Teng and Hengyun. Among them, Juyuan has developed steadily and Hengyun has grown rapidly.

Whale Teng is still in the strategic budget period, but it has been narrowed. In the first half of 2019, the GTN platform developed rapidly, with more than 2,000 open platform registration institutions, OPENAPI service connection institutions continued to increase, and revenue increased significantly; Xiaowhale Intelligent KYC continuedObtained market recognition and signed a contract with the United Nations financial institution; the scale of small business plus marketing services has grown rapidly, and it has become the exclusive technology platform of “Shareholders Come” jointly organized by CCTV & SME Investment Services in 2019.

Comprehensively promote the upgrading of online technology architecture and build a strategy of large, medium and large platforms.

The company’s products comprehensively promote the online transition of the technical architecture, fully embrace the Internet’s diversified architecture to meet the needs of business development of financial institutions, and form a large and medium-sized strategy centered on technology, data, and business.Several platform-based products and their architecture upgrade targets were identified.

In the future, the company will increase the construction of China-Taiwan product lines and accelerate the development and launch of core products.

Investment suggestion: It is expected that the company’s net profit for 2019-2021 will be 13 respectively.



77 ppm, corresponding to PE is 54/49/40 times, maintain “Buy” rating.

Risk Warning: Tightening financial supervision policies.