\u3000\u3000 Hillstone Networks Co.Ltd(688030) (688030)
The annual revenue maintained a growth rate of more than 40%, and the gross profit margin is expected to continue to increase
In 2021, the company realized revenue of 1.027 billion yuan (+ 41.57%), net profit attributable to parent company of 75 million yuan (+ 25.22%), net profit deducted from non attributable to parent company of 54 million yuan (+ 42.30%). In terms of Q4 alone, the revenue reached 424 million yuan (+ 36.77%), which still maintained a high growth rate after Q3 reached 60%. Due to the impact of equity payment, the impact on the net profit attributable to the parent company is about 16.86 million yuan. After excluding the impact, the net profit attributable to the parent company will reach 92.28 million yuan in 2021, with a year-on-year increase of 52.36%. The gross profit margin of the company rose quarter by quarter in the first three quarters and is expected to maintain a high level throughout the year.
The three-dimensional interlocking reform has achieved results, and 2021 has become the turning point of development
In 2021, the company implemented "three-dimensional interlocking", realized the binding and cooperation of business lines, sales lines and industry lines, further increased the investment in sales and R & D, maintained a high growth in the overall cost, and achieved good results. In recent years, the company has continued to expand its product line. Since the beginning of 21 years, the solution ability has been significantly improved, and the personnel increased in the early stage have gradually improved their efficiency. After straightening out the internal incentive mechanism, the growth power of the company has been restored.
Continue to increase investment and upgrade products, and financial Xinchuang is expected to benefit
The company continued to increase R & D investment in 2021, and the firewall entered the Gartner Challenger Quadrant for the first time. At the same time, the company still launched many innovative products, such as container safety, XDR scheme, University safety training platform, etc. In the high-end market, the company has advantages, especially in the context of financial information innovation, the company's high-performance firewall and other products are expected to fully benefit. The company launched a series of products in mid-2021 to continuously improve the cost performance of products and strengthen the penetration of medium and low-end markets. The company arranges FPGA technology to improve the number of ports, forwarding performance and traffic identification performance of products without increasing the hardware cost of the whole machine, so as to improve the overall cost performance of the next generation firewall; At the same time, the company is further transformed into ASIC chips. The technical barrier is high. Only Fortinet is the most proficient in the world. The founding team of the company is the same as Fortinet, and is expected to replicate successfully.
Risk warning: the waiting insurance 2.0 policy is not as expected; Industry competition intensifies; The impact of the epidemic has intensified.
Investment advice: maintain the "buy" rating. Based on the performance express, it is predicted that the revenue from 2021 to 2023 will be RMB 1.028/14.42/1.957 billion, with a growth rate of 42% / 40% / 36%, and the net profit attributable to the parent company will be RMB 75 / 1.30/212 million. Maintain the "buy" rating.
