(Report Producer Author: Guohai**, Sun Jiageng, Liu Xi).
1.1. A leading IT business, a pioneer in financial information innovation
Focus on financial technology innovation and provide the best industry IT solutions. Vertex Software is a leading platform-based digital service provider, based on the development of the IT market, continues to develop business, and provides IT services for the global financial industry including **, large asset management, banking, trust, factor market, etc., in addition, the company also actively carries out non-financial industry information business. Actively embrace the trend and practice global financial information innovation. Vertex Software was founded in 1996 and listed on the Shanghai Stock Exchange in 2017. From the perspective of the company's development history, it can be divided into three stages:
1) Early stage of development (1996-2008): Mainly focusing on the IT market of the financial industry, the asset management system A. was released in 2002 and 2003Asset2000, integrated business support platform ABOSS, Centralized Offer System ASOCPS, enterprise-level customer operations ACRM Suite, and entered the ** industry in 2006. 2) Business development period (2008-2020): The company vigorously expanded the business of financial and non-financial industries, and launched the collaborative management platform for non-financial industry enterprises in 2008, the customer management platform CRM4 in 2014, the main board of the Shanghai Stock Exchange in 2017, and the launch of a new generation of high-speed trading system HTS in 2019. 3) Breakthrough period of information innovation (2020 to present): In July 2020, the company launched the A5 information innovation version, the core trading system based on the liveDTP distributed trading platform, which successfully replaced foreign commercial databases with the domestic self-developed "flying spur" memory database HyperDB for the first time in the industry, which is a landmark embodiment of the company's information innovation bidding ability. 2021 Speed Trading System HTS20 was launched, and in December 2023, it was announced that it had successfully bid for the first phase of the core trading system of CITIC, replacing the original product of its friends. This is the first new customer of Vertex Software's core trading system A5 in the head brokerage, achieving a new breakthrough.
1.2. The shareholding structure is stable, and the senior executives have strong technical background
The management holds nearly 30% of the shares, and the company has formed a "3+3+N" strategic layout. As of Q3 2023, the total shareholding ratio of the company's management is 3211%, and the total shareholding ratio of the top three institutions is 1909%。Among them, Yan Mengyu, chairman and general manager of the company, is the largest shareholder, with a shareholding ratio of 2096%；Fuzhou Apex Electronics is the second largest shareholder, with a shareholding ratio of 1401%。In terms of subsidiaries, Vertex Software has subsidiaries such as Wuhan Vertex Software and Fuzhou Vertex Software, forming Fuzhou, Wuhan and Xi'an as R&D centers, Beijing, Shanghai and Shenzhen as technology centers, and Nanjing and other places as sub-technology centers"3+3+n"Strategic development layout.
Most of the senior management core team are graduates of famous universities at home and abroad, with strong technical background. Yan Mengyu, chairman of the board of directors, Zhao Wei, vice chairman, Lei Shipan, director, Huang Yiqing, and Li Jun, director of the company, graduated from Beijing Institute of Technology, majoring in mechanical design and manufacturing, Tsinghua University majoring in computer technology engineering, South-Central University for Nationalities, Nanyang Technological University and University of Electronic Science and Technology of China.
1.3. Revenue continues to improve, and the self-developed technology platform covers all scenarios
Customized software is the main revenue**, with a high degree of concentration and stability. The company's main business includes four parts: customized software, productization services, software operation and maintenance services and system centralized equipment, and the revenue of these four parts will account for 69 in 20220%，14.8%，14.4% and 18%, and customized software accounted for the highest proportion of major revenue**. From the perspective of the change in proportion, the proportion of revenue of each business fluctuates little and the proportion is relatively stable.
Build a "3+1" basic technology platform to achieve domestic substitution, cost reduction and efficiency increase. From the perspective of the underlying technology platform, Vertex Software drives the comprehensive information innovation of the application system with the innovation of technical architecture and business architecture, and realizes the de-"IOE". The "3" refers to: (1) the trading technology platform LiveDTP. That is, transaction-driven business, the current main products include a new generation of distributed core trading system A5 Xinchuang Edition, HTS professional trading system and professional trading supporting series. (2) Livebos, a business architecture platform. That is, process-driven business, and the main products include customer management platforms C5, C6, etc. (3) LiveData. That is, data-driven business, the main products include the construction of enterprise-level data middle platform, IDS and other data special applications (investor data services), etc. "1" refers to the self-developed Flying Spur in-memory database hyperdb. Based on the "3+1" basic technology platform, the company has carried out a lot of cooperation with domestic software and hardware manufacturers such as Huawei in databases, storage, servers, networks, etc., rapidly promoting the comprehensive information innovation of transaction-driven, business-driven, data-driven and other applications, accelerating the application of scenarios in wealth management, institutional business, investment research, asset management, investment banking, investment and other businesses, as well as banks, trusts and other financial institutions, and achieved the results of domestic substitution and cost reduction of 30%.
Implement digital services covering all business varieties and focus on the IT market. The informatization business of the financial industry of Vertex Software mainly includes the informatization business of the industry, such as large asset management, banking, trust, and factor market. Among these six major sectors, the IT market is the main target market. From the perspective of the industry's business lines, the company has launched a number of core products around five business lines: 1) a new trading system, mainly including the core trading system A5 Xinchuang Edition, the high-speed trading system HTS and the high-speed system FPGA; 2) Retail wealth business line, which mainly includes the customer management platform C6 and the wealth management service system W5; 3) ** business line, mainly including ** option market-making counter HTS mini version and F5 system products; 4) The business line of large investment banks, mainly including the new generation of i5 digital intelligent investment banking platform; 5) The investment research business line mainly includes an integrated investment research business support platform and a one-stop investment research data empowerment platform. Based on the traditional advantageous business CRM, we actively expand the core and high-speed trading system market. Among them, the CRM system is the traditional advantage field of vertex software. According to the company's official data, as of September 2021, about 60% of the top brokerages use Vertex Software CRM. As of April 2023, the core trading system A5 Xinchuang version has been launched on 4 brokerages including Donghai ** and Huabao**, and in December 2023, it announced that it won the bid for CITIC**, achieving a breakthrough in the market share of the top 20 brokerages. In addition, as of July 2023, nine brokerages, including CITIC** and CICC**, have completed the speedy trading system HTS20 upgrades.
1.4. The company's stock price: the implementation of information and innovation transformation is expected to continue to be good
The historical stock price has strengthened, and with the upgrading of core products, the centralized landing of information innovation is expected to be good for the company's stock price. Since its listing on the Shanghai Stock Exchange in May 2017, the share price of Vertex Software has mainly experienced five short-term highs**, namely: 1) March 16, 2018 - April 16, 2018: an increase of 658%。On March 27, the company held a new generation of speed trading seminar; On April 3, the company released its 2017 annual report, and the net profit attributable to the parent company increased by 44% year-on-year59%。2) January 31 - April 9, 2019: an increase of 2893%。On March 1, the company released a new generation of ultra-fast trading system HTS; On April 2, the company released its 2018 annual report, with a year-on-year increase of 1753%；3) May 25-July 8, 2020: 818%。On June 29, the company released the core trading system A5 Xinchuang version. 4) July 5-November 18, 2022: The increase is 1360%。On August 22, the company's core trading system A5 was launched in Donghai**, and on September 21, the company announced that it had won the bid for the institutional wealth management platform business of six brokerages, including Haitong ** and Dongfang**; On August 30, the company released its 2022 interim report, with a year-on-year decrease of 1912%。5) July 14-August 11, 2023: 352%。On July 12, the company released the 2023 interim performance forecast, and the net profit attributable to the parent company is expected to increase by 65% year-on-year37%-76.68%；On July 17, the company announced that nine brokerages, including CITIC** and CICC, had completed the HSS2 system0 upgrades. The company's stock price has a certain correlation with the trend of the brokerage index, and at the same time, the stock price is stronger and more accompanied by the upgrading of core products.
2.1. Provide full-stack business IT solutions, and become a core IT participant
* The IT market refers to the application technology market that provides IT system services, software development and other related services for ** companies and other institutions. IT provides automated trading systems and software tools to support the execution, confirmation and settlement of trades, mainly including core trading systems, customer relationship management systems, etc. According to the business application field, it can be mainly divided into: 1) front-end business, that is, front-end service channels, mainly including mobile business APP, WeChat customer service system and business acceptance terminal; 2) Middle office business, that is, the information business for the best market institutions, mainly including marketing service integration system, product center system, business centralized operation management, etc.; 3) Back-end business, that is, the processing of basic data and information of the business, mainly including large-scale centralized trading systems, first-class trading systems, fund payment systems, etc.
* IT vendors are core participants in the middle of the industry chain. From the perspective of the IT industry chain, it can be mainly divided into: 1) upstream infrastructure providers, including hardware and software suppliers; 2) Midstream IT solution providers, mainly IT manufacturers such as Hang Seng Electronics, Gold Securities Co., Ltd., and Vertex Software; 3) Downstream IT applications, including major companies. Among the midstream manufacturers in the industrial chain, the best IT manufacturers, as core participants in the market, have been deeply involved in the industry for many years, and have formed high technical barriers and reputation advantages, and have a high leading edge.
2.2. Favorable policies are frequently issued, and the construction of financial information innovation promotes development
Strict supervision and promotion of development go hand in hand, driving ** IT to lead the active capital market. In January 2022, the People's Bank of China released the Fintech Development Plan (2022-2025), clarifying the development direction of digital transformation of financial institutions. In February 2023, the China National Supervision and Administration Commission issued the "Plan for the Full Implementation of the Issuance Registration System" to improve the A-market system and improve the efficiency of investment and financing; In February 2023, the China National Supervision and Administration Commission issued the "Measures for the Management of Network and Information Security in the Industry", which set the tone for the measures for network information security in the industry. In June 2023, the China ** Industry Association issued the "Three-Year Improvement Plan for Network and Information Security of ** Companies (2023-2025)", emphasizing the importance of investment in science and technology and the construction of talent teams, clearly encouraging the increase in the proportion of information technology investment, and encouraging the average investment amount of information technology of securities companies to be no less than 10% of the average net profit or 7% of the average operating income from 2023 to 2025. According to the data of the China Securities Association, in 2021, the proportion of information technology investment in securities companies to total revenue will be 60%, there is still some room for improvement.
We continue to emphasize autonomy and controllability, and provide all-round policy support. Information innovation, that is, the innovation and development of information technology applications, mainly includes four core areas: infrastructure, basic software, application software and information security. In recent years, various departments have continuously issued relevant policies, including the "Measures for the Management of Network Security in the Industry (Draft for Comments)", the three-year improvement plan for the company's network and information security (2023-2025) and other policies, which have made corresponding plans and requirements for the construction and improvement of information technology innovation and application of institutions in the industry.
The pilot project continued to advance, and the construction of information and innovation was comprehensively accelerated. In 2020, under the guidance of various policies, financial information innovation was officially launched, and with policy support and independent drive, financial information innovation has achieved rapid development. The pilot is divided into three phases: 1) the first phase of the pilot will be launched in August 2020, with 47 pilot institutions including banks, insurance companies, and securities firms, requiring the purchase of basic software and hardware to account for 5%-8% of the total IT procurement; 2) In May 2021, the second phase of the pilot project will be launched, and the number of pilot institutions will be expanded to 198, and the investment of each information innovation company will be required to be no less than 15% of the annual IT investment, and the replacement of peripheral systems such as OA and email will be realized simultaneously; 3) In May 2022, the third phase of the pilot project will be launched, the number of designated information innovation pilot institutions will be increased to 390, the proportion of information innovation basic software and hardware investment will be increased to 15%-18%, and the replacement of peripheral businesses such as general document systems and financial personnel systems will be realized simultaneously. With the steady implementation of the pilot, China's information innovation has entered a period of comprehensive construction acceleration and is moving towards the stage of localization and substitution of core systems. **The proportion of IT expenditure is stable, and the third phase of the Xinchuang pilot accelerates the development of the IT market. According to data from the China Industry Association, China's IT spending from 2012 to 2021 increased from 518.8 billion yuan increased to 30.3 billion5.5 billion yuan, in 2022, due to the sharp decline in the company's total revenue, the proportion of IT expenditure to revenue has been stable at about 6% since 2018. In addition, the "Three-Year Improvement Plan for Corporate Network and Information Security (2023-2025)" points out that qualified companies are encouraged to actively promote the construction of a new generation of core systems.
3.1. High concentration of IT market and product differentiation
At present, the industry concentration is high, and Hang Seng Electronics and Gold Securities have obvious advantages. According to IDC data, the IT market as a whole in 2021 can be divided into two echelons: 1) The IT leaders, namely Hang Seng Electronics and Jinzheng Shares, have a high first-mover advantage and technical barriers, a leading market position, and a total market share of nearly 50%. 2) Other IT vendors, including Vertex Software, Kingstar, Sinovel Technology, Root Network Technology, etc.
3.2. Steady growth in revenue and net profit, and stable and improving financial indicators
The revenue is stable and improving, and the growth rate is at the forefront of the industry. In 2022, the company's revenue will be 62.5 billion yuan, a year-on-year increase of 242% and 4. revenue in the first three quarters of 20235.7 billion yuan, a year-on-year increase of 178%。After the company resumed revenue growth in 2021, it will still maintain a growth rate of nearly 20% in the first three quarters of 2022 and 2023, which is stable and improving. In terms of peer comparison, the overall trend of revenue growth is relatively close, and the company's revenue growth rate is the first of the three companies in the past two years, which is greatly affected by the industry as a whole.
Mainly in the software and ** industries, the income structure of the same industry is differentiated. From the perspective of revenue structure, in 2022, the custom software business of Vertex Software accounted for 69% of the total revenue, and the proportion of productized software, software operation and maintenance services and system integration equipment accounted for % and 2% of the revenue, respectively. Among the companies in the same industry, Hang Seng Electronics, like Vertex Software, mainly focuses on software revenue, of which large retail and large asset management are the main revenues**, accounting for 43% and 24% respectively in 2022; In terms of gold securities shares, the IT equipment distribution business is the main revenue**, accounting for 56% of the total revenue in 2022. In 2022, the financial industry accounted for 356%, of which the ** business business, the ** brokerage software business and the banking software business are the mainstay, accounting for respectively. 2% and 79%。
The gross profit margin remained stable, ranking at a high level in the industry. In 2022, the company's gross profit margin was 675%, down from the previous year for four consecutive years. Gross margin for the first three quarters of 2023 was 7052%, with an overall recovery, and we expect it to remain around 70%. In terms of business, the gross profit margins of customized software, productized software, software operation and maintenance services, and system integration equipment in 2022 will be respectively. 8% and 213%。Among the peer companies, the gross profit margins of Hang Seng Electronics (software business), Jinzheng (software business) and Vertex Software in 2022 were respectively. 8% and 675%, the gross profit margin of Hang Seng electronic software business has a certain advantage.
The net profit attributable to the parent company has grown rapidly, and the net profit margin attributable to the parent company is leading in the industry. In 2022, the company's net profit attributable to the parent company will be 16.6 billion yuan, a year-on-year increase of 208%。The net profit attributable to the parent company in the first three quarters of 2023 was 1200 million yuan, a year-on-year increase of 6331%。Among the peer companies, the net profit margins attributable to the parent company of Hang Seng Electronics, Gold Securities and Vertex Software in 2022 were respectively. 2% and 266%, reflecting the company's strong profitability.
The sales expense ratio continued to decline, and Hang Seng Electronics' R&D investment accounted for a relatively high proportion. In 2022, the company's sales expense ratio, administrative expense ratio, financial expense ratio, and R&D expense ratio were respectively. 4%、-3.3% and 222%, of which the sales expense ratio has decreased for four consecutive years, reflecting the company's good sales expense control ability. Among the peer companies, in 2022, the R&D expense ratios of Hang Seng Electronics, Gold Securities Co., Ltd. and Vertex Software after excluding the revenue of the hardware part are. 5% and 226%, Hang Seng Electronics R&D investment accounted for the lead.
The number of R&D personnel remained stable, and the human efficiency of the company was leading in the industry. In 2022, the company's R&D personnel will be 1,733, a year-on-year decrease of 18%；The total number of employees is 1,954, and the number of R&D personnel accounts for 887%, down 04pcts, the whole remains stable. Among peer companies, the per capita revenue generation of Hang Seng Electronics, Gold Securities and Vertex Software in 2022 is respectively. 13 and 31At 990,000 yuan, Hang Seng Electronics and Gold Securities have higher pricing power due to their leading position in the industry, and at the same time, the total number of employees is smaller when the revenue of Hang Seng Electronics is close to that of Hang Seng Electronics, so the human efficiency is the highest among the three companies.
The operating cash flow is abundant, and the net cash ratio is leading the industry. In 2022, the company's net operating cash flow and net present ratio were 1., respectively9.6 billion and 1181%, the quality of earnings is higher. Among peer companies, the net present ratios of Hang Seng Electronics, Gold Securities and Vertex Software in 2022 are respectively. 5% and 1181%, Vertex Software has led for four consecutive years.
3.3. Enhance the market share of the back-end and share the development increment of the middle-end market
3.3.1. Back-end business: The centralized landing of information innovation may bring high growth in the short and medium term, and Vertex Software is expected to overtake in corners
Domestic substitution has entered the deep water area, and the back-end market has ushered in high growth in the short and medium term. According to data from Brokerage China, the scale of IT industry spending in 2022 will be about 270400 million yuan, accounting for about 6 percent of total revenue8%。With the domestic replacement of core business systems entering the deep water area, the back-office IT market may usher in high growth in the short and medium term, which is expected to drive the proportion of overall IT expenditure to further increase. The adaptation, performance and application cases of Xinchuang are the core considerations of Xinchuang products. According to the survey of First New Sound, the core considerations for the procurement of application software products include information and innovation adaptation compatibility, product performance, industry application cases, data security capabilities, operation and maintenance and after-sales service capabilities. Among them, more than 30% of the enterprises that consider the compatibility of information and innovation, product performance and industry application cases are the core considerations.
Xinchuang has brought new variables, and the competitive landscape may be reshuffled. Due to the strong stickiness of the company's selection of core business products, the company's selection results for the new generation of core business systems in the next few years will have a great impact on the competition pattern of the IT market. We selected some of the data of leading brokerages, among which 3 companies originally used the core business system of Hang Seng Electronics, 4 companies originally used Jinshi products, 3 companies used Jinshida products, and 1 company used vertex software products. From the perspective of industry cases, in the new generation of selection, CITIC has determined to turn from the choice of Hang Seng Electronics to vertex software, vertex software this time to win the bid is of great significance, if the system products of vertex software withstand the test, then it will bring a strong demonstration effect to the industry, or will completely change the current competition pattern of the core business of the background, the market share of vertex software is expected to continue to increase.
The gap in performance attributes is small, and the progress of Vertex Software is leading. As the main components of the back-office business of the brokerage, the core trading system and the ultra-fast trading system are compared according to the main considerations of the application software information innovation: from the perspective of performance, each company has a long period of technology and experience accumulation, which is relatively close, so this aspect cannot play a decisive role; From the perspective of the adaptability of information innovation, Vertex Software has a relatively leading progress in information innovation. In terms of the core trading system, in 2020, Vertex Software will realize the removal of "IOE" for the first time, and in 2023, the core trading system A5 will realize the full-stack launch of the core trading system, the full business coverage, and the full customer migration. In terms of the speed trading system, the vertex software is supported by the whole site information innovation, from the infrastructure layer, the technology platform layer to the application system of the upper layer, it is fully adapted to domestic software and hardware, and the market-making volume of two financial and option accounts for more than 70%. The replacement of the information innovation system requires a long time of testing, and the first-mover advantage is highly important. For example, some brokerages have recently been criticized for the delay in the submission of customer trading orders and the system downtime, so the test before the replacement of the core business system is more important.
The layout of vertex software has demonstrated high foresight early, and it has taken the lead in realizing the comprehensive information innovation of the core trading system. As early as 2008, Vertex Software began to plan and research the new transaction system, through decoupling and separating steady-state and sensitive-state business processing, and replacing the traditional mode of relying on foreign large-scale database transaction computing with a new storage-computing separation transaction calculation model, so as to realize the de-"O (Oracle database)". In June 2023, the core trading system A5 Xinchuang Edition will be launched for three years, during which it has withstood many trillion** tests and has been running stably and continuously; In October of the same year, A5 was launched as the first core trading system in the industry to realize the full-stack launch, full-service coverage and full-customer migration of the new trading system, demonstrating the company's leading and industry benchmark position in the information innovation of the core business system.
3.3.2. The middle office business is a blue ocean market, and manufacturers will jointly enjoy the industry increment
The business model has been transformed and upgraded, and the development of the front and middle office has continued to improve. In recent years, with the gradual realization of the core trading system of the brokerage system, in order to avoid homogeneous competition, we believe that the brokerage business is expected to transform and upgrade, from the traditional service intermediary to customer service innovation as the goal, IT construction will also gradually shift the focus of construction to the front of the middle office. AIGC and vertical large models are expected to be applied in the front middle office, the construction of the intelligent middle platform may be accelerated, and the proportion of IT middle office expenditure is expected to continue to increase. The self-developed business architecture system is the cornerstone, and the middle platform products have their own characteristics. From 2019 to 2020, Hang Seng Electronics, FSC and Vertex Software successively launched their own business architecture platforms, actively promoting the upgrading of the financial system architecture and empowering the digital transformation of the financial industry through the development and delivery of applications in the digital era through middle platform, componentization, and boosting the digital era. 1) Hang Seng e-finance digital infrastructure light: Launched ten technology stacks to meet the financial industry's technical needs for cloud native, high-performance, and digital intelligence, and realized the strategy of building a large middle platform integrating data middle platform, business middle platform, and technology middle platform. 2) KOCA, the cloud-native platform of FSC: It is divided into three platforms: openness, operation, and operation and maintenance, with a total of 17 specific subdivision platforms, providing business components for specific business scenarios in the industry. 3) Vertex Software Smart Technology Middle Platform live5: A total of 9 subdivided architecture platforms, which not only serve the integration of development and operation and maintenance of the whole business line of Vertex, but also transfer the technology middle platform capabilities to financial institution partners according to needs, and are committed to creating differentiated solutions with financial institutions. The three industry-leading companies have unique layout ideas for their business products in the middle office, and are expected to achieve differentiated competition and share market increments in the face of the future blue ocean of the IT middle platform market.
The core trading system is replaced by information and innovation to reshape the competitive landscape, and the high-speed trading system brings new growth. In the back-end business, in terms of the core trading system, as the brokerage will continue to complete the replacement of the core business system in recent years, under the leading role of the leading brokerage of CITIC, on the basis of the launch of the full-stack information innovation of Soochow Vertex A5, Vertex Software is expected to further enhance its product competitiveness and gain more market share; In terms of the speed trading system, in recent years, the domestic quantitative market has developed rapidly, and the importance of programmatic trading in the market has gradually increased. In December 2023, the Shanghai Stock Exchange issued the "Reminder Letter on Further Improving the Work of Programmatic Transaction Reporting", and the regulatory system for programmatic transactions is also becoming increasingly perfect. As of July 2023, 9 companies, including CITIC**, CICC, Guotai Junan**, Galaxy**, and Great Wall**, have signed contracts to complete HTS2 upgrades and new trading node expansions, and their performance is expected to continue to improve.
The middle office has great potential for business development, and the market share of Vertex Software CRM is leading. In terms of middle office business, as brokerages are expected to continue to transfer IT construction to the front middle office in the future, the market as a whole is a blue ocean. As the leader of centralized operation and CRM products in the industry, Vertex Software's self-developed Live5 technology system integrates multiple aspects such as system framework, development technology stack, mature functional components, system release and operation and maintenance, including three major technology platforms such as microservices, smart business, and smart data, providing efficient support and mature fully independent and controllable solutions for industry information innovation. According to the company's official data, as of September 2021, about 60% of the top brokerages use Vertex software CRM, and the CRM system has a clear lead. Vertex Software's IT middle office business has cases of successful products in the past, and is expected to compete differently with other competitors in the middle office business with greater potential in the future and enjoy industry increments.
The implementation of the new asset management regulations has accelerated the transformation of wealth management, and the demand for asset management IT business continues to grow. In 2022, the new regulations on asset management will be officially implemented, and the wealth management market will fully enter the era of net worth. With the rapid growth of the wealth management market, it has also brought about new changes in the industry ecology: the transformation and upgrading of wealth management in the financial industry has been accelerated in an all-round way, and the transformation of the business model from the seller's sales channel model to the buyer's investment advisory service model is the general trend. Asset management information innovation is promising, helping the company continue to penetrate the market. In the future, asset management is expected to continue to promote the transformation of information innovation, and Vertex Software can continue to penetrate the core products of the asset management business, such as transaction valuation, investment research and other systems, through its first-mover advantage in the field of information innovation, with great development potential. As of September 2023, Vertex has established in-depth cooperative relations with wealth institutions such as Minsheng Bank, Haitong**, GF**, COFCO Trust, and Everbright in the fields of investment consulting and asset allocation, which is expected to continue to improve and has a large space for development.
Driven by the two-wheel drive of market share and industry development, the company's revenue is expected to increase significantly. From the perspective of the industry, after the total revenue declined significantly in 2022 due to the impact of the industry's prosperity, it may benefit from the favorable macro environment and favorable policies from 2024, and we expect that the year-on-year growth in 2025 is expected to recover to the level of 2021; From the perspective of the IT market, the "Three-Year Improvement Plan for Corporate Network and Information Security (2023-2025)" encourages securities firms to invest no less than 10% of the average net profit or 7% of the average operating income from 2023 to 2025, and the proportion of IT expenditure remains stable; From the perspective of the target market of Vertex Software, benefiting from the winning bid for the core trading system of CITIC ** in 2023, the market share is expected to be greatly increased on the basis of 2022 under the demonstration role of the head brokerage, and we can calculate that the revenue of Vertex Software in 2023-2025 is expected to be about 29% year-on-year, with a strong growth trend.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
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