Annual report series of TMT company special analysis (12)-Huiyuan Technology (832028): differentiated competition + qualification barriers + diversified layout rapid growth in 2018 performance

Annual report series of TMT company special analysis (12)-Huiyuan Technology (832028): differentiated competition + qualification barriers + diversified layout rapid growth in 2018 performance

Event: The company released its 2018 annual report and achieved operating income2.

53 trillion, a decrease of 14 a year.

91%; net profit attributable to mother was 8,128.

280,000 yuan, an increase of 60 in ten years.

39%; net profit after non-recurring gains and losses is 7191.

280,000 yuan, an increase of 55 in ten years.


(Company Annual Report) Third-party payment solution service provider, focusing on B-side customers: The company adheres to the strategic positioning of “Remittance, Smart Finance, Huisheng”, focusing on providing Internet payments, pre-estimated card payments, and aggregation for B-side corporate customers.Payment solutions, customized payment solutions and other payment and financial information services, providing customized, big data precision marketing, one-stop, comprehensive, efficient payment and financial technology solutions.

The company’s source of income is mainly to include service fees or transaction commissions while providing services.

(Company annual report) Industry policy adjustment + industry competition intensifies, and the company’s optimization model adjustment structure has achieved initial results: the transformation of industry policy adjustment and economic cycle, the application scenarios and value-added service competition of third-party payment markets intensified, and the company’s operating income in 2018At least slightly down.

The company continuously optimizes its business model, continuously integrates overall high-quality resources, and condenses the overall team. Operating costs and expenses have been reduced compared to the previous year, and the net profit returned to the mother increased by 60.


Net cash flow from operating activities1.

880,000 yuan, an increase of 147 in ten years.

37%, because the company received a lot of donations in 2018.

(Company Annual Report) The effect of differentiated competition is significant and the penetration rate in the entertainment industry is high: third-party payment is a highly market-oriented Internet financial business. The company has adopted a differentiated competition strategy since 2008, focusing on digital entertainment and finance.In the field of science and technology, it is a leader in the industry.

The offline payment product “Currency and Cash Collection” is based on the concept of wide payment, and docks to extend the mobile terminal of the payment platform; the prepaid card brand “Jun Card” has a market share.

After years of industry accumulation, company-scale products have a strong brand effect in the industry. Customers cover Tencent Games, Perfect World, Giant Network, Shanda Network, Sohu Changyou, Netease Games and other hundreds of game operators. User loyaltyIt has a high degree of recognition in the market and has a great advantage in terms of user attachment and trust.

(Company annual report) The company and its wholly-owned subsidiaries have many license qualifications, forming a certain barrier of protection: in the field of non-bank third-party payment business, enter the high-level above the door.

The company ‘s wholly-owned subsidiary ‘s Internet payment business brand “Huifubao” is a third-party payment platform licensed by the People ‘s Bank of China. It has a third-party payment license, has passed CFCA technology certification, and ranks among the top in the field of payment services.

After years of hard work, the company has a well-known brand effect in the industry. It is a professional and secure Internet payment platform that covers PC and mobile terminals. It is known as an expert on wide-range payment solutions and customized payment solutions.

(Company Annual Report) Focus on independent research and development and improve core technology: The company has a professional independent research and development team, and constantly attracts the best talents in the industry through various incentives to maintain the industry’s leading 杭州桑拿 technology and continuous innovation ability.

By the end of 2018, the company had 94 software copyrights with independent intellectual property rights, and all of them had been applied to actual business services.

The core technology ensures that the company’s product and service platform can operate safely, stably, and efficiently, and enhances the company’s competitiveness.

(Company annual report) The development of payment ecology is diversified, and the layout of “payment + fintech”: the report summarizes, the company focuses on vertical fields, with multi-type product systems such as Huipay, CRM system, foreign exchange cashier, applets, marketing cards and coupons, etc.Corporate users provide customized payment service solutions, while improving corporate payment efficiency, they provide support in many aspects such as precision marketing, reconciliation, corporate fund management, and supply chain finance.

In the future, the company will further realize the diversified development of the fintech ecosystem with payment as its core, empower big-end merchants with innovative technology applications such as big data analysis and blockchain, complete the “payment + fintech” business layout, and continuously improve the company.Core competitiveness and value.

(Company Annual Report) Investment Suggestion: Terminate to the latest company market size.

1.7 billion, PE is 8.

8X, it is recommended to pay attention.

Risk Warning: Risk of policy change, business growth is less than expected, market competition risk