\u3000\u3 China Vanke Co.Ltd(000002) 268 Westone Information Industry Inc(002268) )
Event: the company released the performance express of 2021, and achieved an operating revenue of 2.789 billion yuan in 2021, with a year-on-year increase of 17.00%; The net profit attributable to the parent company was 239 million yuan, a year-on-year increase of 47.79%, which was in line with market expectations.
Key investment points
Substantial improvement in profitability and operational capacity: the company achieved an operating revenue of 2.789 billion yuan in 2021, a year-on-year increase of 17.00%; The net profit attributable to the parent company was 239 million yuan, with a year-on-year increase of 47.79%, mainly due to the company's solid promotion of various key projects and innovation projects, participation in national, provincial and ministerial research, organization and implementation of national, ministerial and provincial key projects, and the growth of income and gross profit. The company's net operating cash flow increased by 3.36 billion yuan to a record high of 2026.6 billion yuan, further increasing the company's net operating cash flow by 3.6 billion yuan year-on-year.
The five business capabilities have been improved rapidly, taking the lead in benefiting from the favorable policies of data security: the company's five business capabilities with strategic planning as the core have been rapidly constructed and improved, the product and market capacity of basic civil product security chips have been continuously improved, innovative application solutions for new business and new scenarios such as the Internet of vehicles and the Internet of things have been continuously enhanced, and the ability of data security system has been widely used in the government industry It has been verified and successfully applied in typical application scenarios such as the Internet. The security application business cooperation ecosystem with orange news as the core has been rapidly improved, and the security service and practical exercise ability have been highly recognized by customers. It has built the country's first provincial and municipal integrated government password service platform. With the formal implementation of the data security law and the personal information protection law, the data security needs of Internet and other industries are expected to increase rapidly. As a national team in the field of information security in China, the company has been deeply engaged in cryptographic technology for many years and is expected to take the lead in benefiting from the implementation of specific scenarios of data security and privacy computing.
The chairman of China network security is also an executive of the company, which is expected to become a resource integration platform: Recently, the company newly elected Mr. Chen Xin as the chairman. Mr. Chen Xin has been the chairman and party secretary of China Electronic Technology Network Information Security Co., Ltd. since January 2022. At the 2021 annual work conference of CETC, the chairman of the group proposed that the 14th five year plan focus on strengthening, optimizing and expanding the four sectors of electronic equipment, network information system, industrial foundation and network security. As the only listed platform of China NETAN, the company has previously acquired 30 Jiawei, 30 Ruitong and 30 Shengan, pointing out the development path for future strategic integration. This time, the chairman of China network security is also an executive of the company. It is expected that the company will become the resource integration platform of the group in the field of network security and continue to expand and improve the whole industrial chain.
Profit forecast and investment rating: considering the impact of the company's order landing rhythm, we reduced the net profit attributable to the parent company from 346 / 454 / 581 million yuan to 239 / 318 / 418 million yuan in 20212023, and the EPS from 0.41/0.54/0.69 yuan to 0.28/0.38/0.49 yuan in 20212023. The current market value corresponds to 158 / 119 / 90 times of the company's PE. As China's national team in the field of information security, the company will deeply cultivate password technology, and will fully benefit from the implementation of data security related policies in Internet and other industries. In the future, it is expected to continue to obtain the resource docking and strong support of the group. Maintain the "buy" rating.
Risk tip: industry competition intensifies, business secret promotion fails to meet expectations, and there are risks related to senior management changes
