Beijing Infosec Technologies Co.Ltd(688201) (688201)
[key investment points]
The company is a high-quality information security manufacturer and has established a high-quality brand in the financial field. Based on password technology, the company helps customers solve information security problems such as identity security, communication security and data security. The company has been deeply engaged in the financial industry for more than 20 years. As one of the leading enterprises in financial security, relying on high-quality product performance to obtain market recognition, the company will fully benefit from the golden period of industry development.
The company has won the Bank Of Beijing Co.Ltd(601169) digital RMB project and really benefited from the development of digital RMB. The company has established long-term and stable cooperative relations with major banks. China Industrial And Commercial Bank Of China Limited(601398) , China Agricultural Bank Of China Limited(601288) , Bank Of Communications Co.Ltd(601328) and China China Construction Bank Corporation(601939) all use the company's certificate authentication system to build the identity authentication security system of the bank wide business system. The company has a leading position advantage in the development process of digital RMB.
Take multiple measures at the same time, extend the product line and achieve steady growth. The company acquired Huayao technology, took financial security products as the starting point, actively expanded its product line, and accumulated rich capabilities in load balancing, application delivery and other products. In 2021, the company won the bid for China Mobile centralized purchase of WAF software, demonstrating its great security strength. The company is looking forward to the layout of a new generation of security capabilities and is making efforts to grow into an all-round security manufacturer.
[investment advice]
With the increasing importance of information security and the continuous outbreak of new demand, the company is driving into the fast lane of development, and the promotion of digital RMB will bring considerable incremental space to the company. We expect the company to achieve revenue of 538 / 710 / 915 million yuan and net profit attributable to parent company of 138 / 180 / 235 million yuan in 2021 / 2022 / 2023, corresponding EPS of 1.48/1.93/2.52 yuan / share and PE of 42 / 32 / 25 times respectively. Give the company 43 times PE valuation in 2022, the target price within 12 months is 83 yuan, cover it for the first time, and give a "buy" rating.
[risk tips]
The promotion of digital RMB is less than the expected risk;
Risk that the bid winning result and order amount of digital RMB project are less than expected;
It investment in financial industry is less than expected risk;
The expansion of the company's product line is less than the expected risk;
The introduction of on-board middleware products into the vehicle factory is less than the expected risk.
