\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
Events
Dbappsecurity Co.Ltd(688023) released the performance express for 2021. In 2021, the company achieved an operating revenue of 1.821 billion yuan, a net profit attributable to the parent company of 14.04 million yuan, and a net profit attributable to the parent company of – 78.65 million yuan after deducting non profits.
Comments:
Overall, the company’s revenue is in line with market expectations. The company achieved an operating revenue of 1.821 billion yuan in 21 years, with a year-on-year increase of 37.68%; The net profit attributable to the parent company was 14.04 million yuan, a year-on-year decrease of 89.53%; The net profit attributable to the parent company after deducting non profits was -78.65 million yuan, a year-on-year decrease of 165.13%.
In terms of single Q4, both revenue and profit showed a rebound trend against the trend. The company’s 21q4 revenue was 956 million yuan, an increase of 44% year-on-year; The net profit attributable to the parent company was 282 million yuan, a year-on-year increase of 68%; The net profit attributable to the parent company after deduction was 272 million yuan, an increase of 61% year-on-year. We believe that the strong rebound of Q4 performance is mainly due to the rapid growth of Q4 revenue and the significant increase of gross profit margin.
From the performance express, we believe that the company’s performance in 2021 mainly includes the following points that deserve attention:
1. Sharp decline in profits
We believe that the decline of the company’s profits is caused by two reasons: 1) main reasons: the increase of expenses, the company’s increase in R & D and sales investment, and considering the share based payment expenses, we estimate that this will bring about an additional cost increase of about 170 million yuan (compared with the cost increase caused by the expansion of the company at the original rate); 2) Secondary reason: the short-term fluctuation of profitability leads to the decline of gross profit margin. Assuming that the annual gross profit margin finally decreases by 5bps, it will lead to the decline of profit of nearly 100 million yuan.
2. The business margin of the new track is improving
Although the company’s profit declined significantly in 2021, from the perspective of the company’s fundamentals, we believe that the layout of the company’s new scene in the new track has achieved initial results, and the continuous high growth of revenue and the improvement of profit level in 2022 are worth looking forward to.
3. Combined with equity incentive, the company’s confidence is fully transmitted
Considering that the company released the 2022 equity incentive plan early in February, and the incentive strength and incentive assessment conditions have been enhanced, we believe that on the one hand, it conveys the management’s confidence in the long-term development of the company, on the other hand, it also shows the company’s attitude of two-way binding business results with employee returns, which helps to stabilize the core team and stimulate the potential of employees.
Investment suggestion: Based on the 2021 performance express released by the company, we adjusted the original profit forecast. It is estimated that the revenue in 2021, 2022 and 2023 will be RMB 1.82125483556 billion respectively (the original forecast is RMB 1.81725413546 billion), and the net profit attributable to the parent company will be RMB 14 / 145 / 491 million respectively (the original forecast is RMB 11 / 118 / 463 million), maintaining the “buy” rating.
Risk tip: the brain drain of core technology, the decline of downstream procurement demand, the intensification of industry competition and performance express are the preliminary calculation results. The specific financial data are subject to the annual report disclosed by the company
