On October 31, 2021, Yuxin Technology (300674) announced that: He Mingxiao of Harvest Fund, Wu Jianliang of Harvest Fund, Yang Liu of Harvest Fund, Liu Ye of Harvest Fund, Xie Zhaoyi of Zhonggeng Fund, Lian Bolun of New Ideas Investment, Zhang Dayang of Morgan Stanley, Ji Ming of CLSA, Zhongxin (Beijing) Asset Management, Wang Yilin of Huaxi Securities, Yang Lin of Haitong Securities, Guo Yali of Huatai Securities, Peng Tao of Huatai Securities, Jiang Dan of Zhongtai Securities, Huang Hao of XianLing Investment, Junchen Yu junchen of Dengcheng Assets, Yang Benhong of Industrial Securities, CITIC Securities Li Kangqiao, Pacific Securities Chen Xiaoshan, GF Asset Management Wang Qijue, Kaiyuan Securities Yan Ning, New Era Securities Ma Xiao, Harmony Huiyi Asset Management Zhang Yiman, Hongta Securities Li Yufeng, Shenzhen Jeff Group Huang Yujin, Shenzhen Jeff Group Zhao Bingyang, Beijing Kinte Priming Investment Management Co., Ltd. Chen Zhuo, Beijing Shengxi Investment Management Co., Ltd. Xu Jie, Shanghai Chongyang Investment Management Co., Ltd. Tan Wei, Shanghai Luyong Asset Management Co., Ltd. Peng Yongfeng, Shanghai Minghe Investment Management Co., Ltd. Jiang Yufan, Pengyang Fund Zhou Wenjing, Tianfeng Securities Miao Xinjun, Guoyuan Securities Geng Junjun, Guosen Securities Zhu Song, Tianfeng Securities Wang Qianwen, Shanghai Shenyin Wanguo Securities Pu Mengjie, lazard asset management Xi Zheyu, new silk road investmentfeng xin, Unified Investment Zheng Zongjie, Huaxi Securities Kong Wenbin, Guotai Junan Securities Li Bolun, Guotai Junan Securities Deng Yijun, CICC Wang Zhihao, Wanjia Fund Hu Wenchao, Zhongheng (Xiamen) Asset Management Zheng Shaorong, Guangfa Securities Lei Tangdi, GF Securities Pang Qianqian, Securities Capital Hao Lei, Capital Securities Zhai Wei, Debon Securities Zhao Weibo, Debon Securities Huang Xiaoyu, Zhongtian Securities Liu Dahai, Guohua Insurance Asset Manager Wang Ting, Dayan Capital Liu Jie, Dehui Group Liang Tianqi, Shanghai Ruochuan Asset Management Hu Xiaojun, Guangzhou Zhaoshi Investment Partnership (Limited Partnership) Li Yunfeng, Shenzhen Junyi Private Equity Securities Management Co., Ltd. Luo Jun, Hangzhou Nine Dragons Asset Management Co., Ltd. Hong Yan, Hunan Light Salt Venture Capital Management Co., Ltd. Long Yanyan, Pan Xuhong of Zhejiang Shaoxia Investment Management Co., Ltd. investigated our company on October 29, 2021.
The main contents of this survey are:
Q: In terms of revenue recognition of large banks, there is a slight delay in settlement, and there is a similar situation in the statements of companies in the same industry, what is the main reason?
A: Each customer's requirements and processes vary, and the same customer itself regularly makes some adjustments to the process. In terms of revenue recognition, on the basis of fully understanding the customer's rule process, we plan as far in advance as possible, and through systematic management, we ensure that revenue recognition is recognized in a timely manner as much as possible, so as to ensure stable performance.
Q: At present, the cost of personnel in the industry is also rising relatively fast, when do you think this trend will ease, or even reverse?
A: The rise in personnel costs began in the first half of the year. Judging from the financial statements, the second half of the year is more pronounced, and this trend is expected to stabilize in the middle of next year.
Q: What is the expected business scale of the innovative operation business in the future?
A: The scale of innovative operation business has grown significantly. It is expected that the growth of subsequent small and micro scenarios will be larger. The large proportion of innovative operation business is mainly online loan business, which is affected by the tightening of policy supervision, and there is a certain short-term uncertainty, but there is still a lot of room for long-term development. The credit business of small and micro scenes, the company's cooperation with third parties is mainly to use the data of the scene to help small and medium-sized enterprises achieve digital transformation, the company is empowered in financial technology, to help small and medium-sized and micro enterprises obtain financial support, and a number of financial institutions have been signed, and the business volume of small and micro scenes is expected to appear next year.
Q: What are the company's recruitment expectations for next year?
A: The company as a whole still hopes to improve the efficiency of personnel, the industry itself has a high degree of prosperity, the company's product line is comprehensive, and the competition of each product line is relatively strong. The company is more to select high-quality customers and high-quality projects, and match resources to good projects and customers, in order to have better financial returns, in order to bring long-term sustainable development. The company will judge according to the actual situation and match the corresponding resources on different projects. In terms of personnel recruitment, the current increase in personnel is expected to be less than 20%.
Q: In the process of industrial exchanges, including referring to the performance of various manufacturers, we believe that the software development of large banks may have entered a new round of high prosperity cycle, how do you think about the bank IT, especially the driving force of the growth of development demand of large banks, and whether there is a new demand for technology procurement?
A: In the past two years, the business growth of large banks has been very fast, and the quality of their own business development and financial status is relatively high, so driven by financial credit creation and deepening digital transformation, large banks will continue to increase investment. At the same time, the output of science and technology led by Jianxin Jinke will also bring us additional R&D growth opportunities.
Q: What is the company's idea of choosing an ecological partner?
A: The company's current ecological partners are mainly in two categories. One type is the big factory, and the advantages of each family are different. Baidu is a strategic investment in Yuxin Technology, there is a preferential cooperation agreement in related fields, in the past year or so in the process of cooperation, we through consultation, in Baidu's non-key development areas, or in the case of customer designation, Yuxin Technology will also choose to cooperate with other manufacturers, such as Huawei, Tencent and other partners. Such a cooperation strategy makes the company's partner ecosystem healthier and more perfect, and can bring more value to customers. The company wants to work with partners to deliver deep, joint, holistic solutions that deliver win-win outcomes, rather than simple agencies. After the cooperation in the past few years, the cooperation between various companies has been relatively in-depth, such as in-depth cooperation with Baidu in artificial intelligence, big data, and cloud, cooperation with Tencent in data middle office, and Huawei's cooperation is more extensive, and Huawei's product line is more comprehensive. Another type of ecological partner is a manufacturer that stands out in a certain professional field and has leading products in their respective fields. The company will also carry out strategic cooperation with suitable product manufacturers according to specific scenarios, hoping to give customers more, better and more open services.
Q: The company has recently cooperated with Tencent strategically, and has also cooperated with Tencent before, what is the difference?
A: Under the premise of complying with the provisions of Baidu's strategic cooperation agreement, the company has had business cooperation in both domestic and overseas markets in the past two years. With the deepening of the ecological cooperation between the two sides, the two sides hope to systematically optimize the cooperation between the two sides. To this end, the two sides decided to sign a strategic cooperation agreement, the two sides based on the project cooperation has a more systematic sorting and mechanism, more clear areas of cooperation between the two sides, can be more concentrated in the areas where the two sides are strong and strong, so that the cooperation between the two sides is smoother and more efficient.
Q: What are the reasons for the establishment of a joint venture between the company and Dingjie Software?
A: Dingjie Software is a GEM-listed company, and the two parties invested in the establishment of a joint venture company mainly planning to cooperate in the exploration of the field of enterprise digitalization. At present, small and medium-sized enterprises have more urgent needs for digital transformation. By integrating the resources of both parties, the joint venture hopes to make full use of Dingjie Software's professional ability in industry chain resource management and Yuxin Technology's accumulation in financial technology to help related enterprises in the supply chain carry out digital transformation.
Q: Is there an update to the corporate finance plan?
A: The company's issuance of shares to specific targets has been approved by the CSRC for registration. The Company may issue it within 12 months from the date of receipt of the approval of the consent to registration. The company will communicate with the sponsoring agency in the future, hoping to promote the relevant process as soon as possible.
The main business of Yuxin Technology: software development and services, system integration sales and services, and other main businesses
Yuxin Technology's 2021 third quarter report shows that the company's main revenue was 2.053 billion yuan, up 26.59% year-on-year; net profit attributable to the mother was 155 million yuan, up 13.77% year-on-year; deducted non-net profit was 127 million yuan, up 4.76% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 702 million yuan, up 28.93% year-on-year; single-quarter net profit attributable to the mother was 21.7296 million yuan, up 207.09% year-on-year. In the single quarter, the non-net profit was 20.1435 million yuan, up 19509.73% year-on-year; the debt ratio was 34.41%, the investment income was 45.2318 million yuan, the financial expense was -5.898 million yuan, and the gross profit margin was 35.39%.
A total of 13 institutions have given ratings in the last 90 days, 12 buy ratings and 1 overweight rating; the average target price of institutions in the past 90 days has been 32.62; the Valuation Analysis Tool of Securities Star shows that Yuxin Technology (300674) good company rating is 3.5 stars, good price rating is 3.5 stars, and valuation comprehensive rating is 3.5 stars.