Qi An Xin Technology Group Inc(688561) company information update report: repurchase shows confidence and is optimistic about long-term development

\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )

The innovative network security leader with rapid development maintains the “buy” rating

Considering the continuous increase of the company’s investment and the impact of incentive expenses, we lowered the forecast of the company’s net profit attributable to the parent company in 2021 to -552 million yuan (the original forecast was -527 million yuan), and maintained the net profit attributable to the parent company in 20222023 to 108 million yuan and 360 million yuan, corresponding to EPS of -0.81, 0.16 and 0.53 yuan / share respectively. The current stock price corresponds to PE of -76.5, 391.7 and 117.5 times in 20212023, Considering the continuous consolidation of the company’s market leading position, maintain the “buy” rating.

The large-scale repurchase is used to motivate employees and demonstrate confidence in long-term development

The company announced that the company plans to buy back the company’s shares in the form of centralized bidding transaction within 6 months from the date when the board of directors deliberates and approves the repurchase plan. The total repurchase fund is 150300 million yuan (including), and the repurchase price is no more than 80 yuan / share (including). This large-scale repurchase fully demonstrates the company’s management’s confidence in long-term development. The repurchased shares will be fully used for ESOP or equity incentive at an appropriate time in the future, which is conducive to improving the company’s long-term incentive mechanism and fully mobilizing the enthusiasm of the company’s employees.

High R & D investment lays the cornerstone, and the new track drives high growth

Using the “LEGO” thinking, the company has upgraded the R & D platforms of Kunpeng, Noah, rier and Zion Normal University, and built four R & D platforms of Chuantuo, Dayu, Xuanji and qianxingxin. The company continues to promote the R & D platform strategy, and comprehensively improves the standardization, modularization, modularization and performance of products. In addition, the technical competitiveness of the company’s products in the fields of data security and privacy protection, practical situational awareness, cloud security, terminal security, border security, security services and security operations continues to lead the whole industry. Thanks to this, the company is expected to achieve an operating revenue of 5.811 billion yuan in 2021, with a year-on-year increase of 39.64%, leading the network security industry.

Make important breakthroughs in internationalization and open up new market space

The company has made breakthroughs in its internationalization strategy. In December 31, 2021, the official account of Qi An Xin Technology Group Inc(688561) announced that the company had won a total of 70 million yuan in international business, and the cooperation focused on APT monitoring. It shows that some of the company’s core products have begun to have international competitiveness, and the expansion of international business opens a new space for the development of the company.

Risk warning: market competition intensifies the risk; Continuous loss risk; Brain drain risk.

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