Apex(603383) 申万宏源·2024-06-13 10:01Company Overview - The company specializes in financial IT services, focusing on securities, futures, asset management, and other financial sectors. It has developed core products such as the A5 Xinchuan version and HTS2, which are widely used in the securities industry [122][162] - The company has a strong focus on self-developed technologies, including the HyperDB in-memory database, LiveDTP distributed transaction platform, and LiveData platform, which support its core business systems [122][162] - The company's revenue has been growing steadily, with a CAGR of 22% from 2019 to 2023, reaching 7.44 billion yuan in 2023. Net profit also increased significantly, with a CAGR of 16% over the same period [148][168] Financial Performance - In 2023, the company achieved a revenue of 7.44 billion yuan, a 19.1% year-on-year increase, and a net profit of 2.33 billion yuan, a 40.5% year-on-year increase [148] - The gross profit margin and net profit margin rebounded in 2023, reaching 69.2% and 31.6%, respectively, due to improved cost control and operational efficiency [5][169] - Customized software and software operation and maintenance services account for approximately 80% of the company's revenue, with human costs being the main expense [5] Industry Trends and Opportunities - The securities IT market is expected to expand due to policy-driven demand, with the "Three-Year Improvement Plan" encouraging increased IT investment in the securities industry. The plan aims for IT investment to account for 10% of net profit and 8% of revenue by 2026 [7][134] - Financial Xinchuan (domestic substitution) is extending from peripheral systems to core business systems, creating new opportunities for companies with advanced Xinchuan-compliant solutions [28][134] - The core trading system is a key module in securities IT, and the company's A5 Xinchuan version is well-positioned to gain market share due to its performance and Xinchuan compliance [31][112] Core Products and Technology - The A5 Xinchuan version is a next-generation core trading system that has achieved full-stack Xinchuan compliance and is widely adopted in the securities industry. It features low latency, high performance, and distributed architecture [15][112] - The company's HyperDB in-memory database is a key technology that enables high-concurrency, low-latency transactions, and it has been successfully deployed in various financial institutions [41][162] - The HTS2 ultra-fast trading system is widely used by leading securities firms and quantitative hedge funds, with over 200 trading links and more than 100 quantitative hedge funds connected as of July 2023 [46][71] Market Expansion and Strategy - The company is expanding its business beyond securities to cover banking, asset management, and other financial sectors, leveraging its core technologies and products [122][140] - The company has implemented equity incentive plans to attract and retain key technical and business talents, with 416 incentive recipients in 2021 [50][127] - The company's "Wealth+" product line, including C6, W5, E5, and P6, is designed to empower asset management and wealth management services, with a focus on digital transformation and intelligent operations [55][135] Competitive Landscape - The company competes with other leading financial IT providers such as Hundsun Electronics, Kingdee, and Huarui Technology. Its A5 Xinchuan version is recognized for its advanced performance and Xinchuan compliance [15][65] - The company's A5 Xinchuan version has been successfully deployed in over 10 securities firms, with several more in the process of switching, indicating strong market acceptance [70][112] Future Outlook - The company is expected to achieve revenue of 8.30, 9.73, and 11.25 billion yuan in 2024-2026, with net profits of 2.66, 3.21, and 3.65 billion yuan, respectively. The growth is driven by the expansion of Xinchuan-compliant products and services [129][151] - The company aims to further expand its market share in core trading systems and continue to innovate in areas such as intelligent operations and digital transformation [114][135]