Hundsun Technologies Inc. Announces Equity Incentive Scheme and Achieves 18.49% YoY Revenue Growth in 1H23

HUNDSUN TECHNOLOGIES INC.(600570)：Equity Incentive Scheme Shows Confidence in Long-Term Development

Hundsun Technologies Inc. reported its semi-annual financial results for 2023, with revenue at CNY 2.827 billion, up 18.49% YoY. Its net income attributable to shareholders was CNY 446 million, compared with a loss of CNY 96 million in the same period of last year. Its equity incentive scheme covers 1,613 directors and senior executives, and it plans to grant 15.39 million shares to its employees, accounting for 0.81% of its outstanding shares. The exercise price was at CNY 39.44 per share, and its net income growth is required to be no less than 10% from a year earlier from 2023 to 2025. This scheme is conducive to binding the interest of employees and showing its confidence in development.

Thanks to its good control over expense rates, the company continued the scissors gap of profit. Its gross margin was 71.93%, down 0.53 percentage points, showing the company has maintained high competitiveness. Its net income attributable to shareholders in Q2 stood at CNY 224 million, versus a loss of CNY 55 million in the same period of last year. Its net income deducting non-recurring items came in at CNY 190 million, a surge of 102.63% from a year ago, a significant recovery.

In 1H23, the growth of its revenue and net income was higher than its earnings forecasts. Its performance grew steadily, with revenue in Q2 seeing an acceleration from a year earlier. By businesses, its wealth management technology reported CNY 661 million, up 11.10% YoY; its asset management technology turned in CNY 661 million, a increase of 7.60% from a year ago; its business operation and institution technology contributed CNY 533 million, a 27.48% from a year ago; its risk management and platform technology delivered CNY 218 million, 28.07% higher than it was a year ago; its data services made CNY 173 million, 27.80% higher than it was a year ago; its innovation business rose by 22.49% from a year ago to CNY 243 million; its corporate financial management, core technology and financial infrastructure technology for insurance companies reported CNY 247 million, a 53.22% growth from a year ago.

Earnings forecast and investment recommendation: According to its latest financial report, we maintain “Outperform” and estimate its net income attributable to shareholders at CNY 1.806 billion in 2023, CNY 2.207 billion in 2024, and CNY 2.673 billion in 2025.

Potential risks: slower-than-expected policy implementation; slower-than-expected new product promotion

Disclaimer: This article only represents third-party views and does not represent the position of Hexun.com. Investors are advised to operate at their own risk based on this information.

以上为本次券商研究报告的看点总结，仅供参考。

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