\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Core view
Event: the company issued a performance express. In 2021, it achieved a revenue of 5.811 billion yuan, a year-on-year increase of 39.64%. It is expected to achieve a net profit attributable to the parent company of -552 million yuan, a year-on-year loss increase of 65.19%, and a deduction of non net profit of -782 million yuan, a year-on-year loss increase of 44.95%.
The “platform” strategy promotes the rapid growth of core product revenue. During the reporting period, the company continued to promote the “platform” strategy, which greatly improved the competitiveness of core products and promoted the revenue scale and gross profit margin of core products. The competitiveness and market share of the company’s data security and privacy protection products (including cloud scene data security) increased rapidly, and the product revenue exceeded 1.1 billion yuan, with a year-on-year growth rate of more than 50%; The company took the lead in realizing the actual combat of situation awareness products, making the market position in this field continue to lead. The revenue of situation awareness products exceeded 1.2 billion yuan, with a year-on-year growth rate of nearly 30%; The company continues to lead the market of terminal security (including cloud server and virtualized terminal protection), and its market share continues to rank first, with a total revenue of more than 800 million yuan, with a year-on-year growth rate of more than 30%; Revenue in business areas such as border security, security services and security operations increased rapidly.
The growth rate of customers in operators, energy and medical industries exceeded 50%. The intensive introduction of relevant legislation and policies in the network security industry has opened a huge growth space for the network security market and had a far-reaching impact on the development of the network security industry. The regulatory environment pays more attention to the assessment of “practical” defense effect, driving the transformation of customer demand from “passive compliance” to “active legality”. During the reporting period, the company’s revenue growth rate in operators, energy and medical and health industries exceeded 50%; The revenue growth rate of the government and the financial industry exceeded 30%. The company’s products are more capable of practical, systematic and coordinated defense, which promotes the company’s revenue to continue to maintain rapid growth in key information infrastructure industries such as finance, operators, energy, medical treatment and government customers.
The prosperity of the industry remains unchanged, and the company is expected to continue to benefit. In 2021, the data security law, the regulations on the security protection of key information infrastructure, the personal information protection law and other industrial legislation were successively issued, which opened a huge growth space for the network security market and had a far-reaching impact on the development of the network security industry. The regulatory environment pays more attention to the assessment of “practical” defense effect, driving the transformation of customer demand from “passive compliance” to “active legality”. The company’s products are more capable of practical, systematic and collaborative defense. Its technical competitiveness in the fields of data security and privacy protection, practical situational awareness, cloud security, terminal security, border security, security services and security operations will continue to lead the whole industry and will continue to benefit from the high outlook of the industry.
Investment suggestion: China is a leader in the field of network security, with continuous R & D and innovation. With a comprehensive product system and strong security service ability, the performance is expected to continue to maintain rapid growth. We estimate that the company’s operating revenue from 2021 to 2023 will be RMB 5.811 billion, RMB 8.135 billion and RMB 11.226 billion respectively, the net profit attributable to the parent company will be RMB -551 million, – 0.54 million and RMB 326 million respectively, and the EPS will be RMB -0.81, – 0.08 and 0.48 respectively, maintaining the “buy” rating.
Risk warning: policy promotion is not as expected; Increased competition led to lower than expected product sales.
