\u3000\u30 Zhongyan Technology Co.Ltd(003001) 88 Xiamen Meiya Pico Information Co.Ltd(300188) )
Matters:
The company announced in its 2021 annual report that in 2021, it achieved an operating revenue of 2.535 billion yuan, a year-on-year increase of 6.25%, a net profit attributable to the parent company of 311 million yuan, a year-on-year decrease of 17.06%, and EPS of 0.39 yuan. The profit distribution plan for 2021 is: it is proposed to allocate 1.2 yuan (including tax) for every 10 shares, and the capital reserve will not be converted into share capital.
Ping An View:
The company’s revenue increased steadily, and the net profit attributable to the parent decreased year-on-year. According to the company’s announcement, the company achieved an operating revenue of 2.535 billion yuan in 2021, with a year-on-year increase of 6.25%, and the revenue achieved steady growth. Among them, the company’s cyberspace security product business realized a revenue of 1.381 billion yuan, a year-on-year increase of 22.65%; The revenue of big data intelligent product business was 975 million yuan, a year-on-year decrease of 10.19%; The network open source intelligence product business realized a revenue of 80 million yuan, a year-on-year increase of 38.12%; The intelligent equipment manufacturing business realized a revenue of 36 million yuan, a year-on-year decrease of 41.07%; The revenue of support service business was 62 million yuan, a year-on-year increase of 14.55%. In 2021, the company realized a net profit attributable to the parent company of 311 million yuan, a year-on-year decrease of 17.06%, mainly due to the year-on-year increase in the expense rate during the period.
The gross profit margin of the company increased slightly year-on-year, the expense rate during the period increased significantly compared with the same period, and the R & D investment increased rapidly year-on-year. The gross profit margin of the company in 2021 was 58.37%, a slight increase of 0.77 percentage points year-on-year. During 2021, the company’s expense rate was 43.08%, an increase of 3.53 percentage points year-on-year, mainly because the R & D expense rate increased by 2.4 percentage points year-on-year. In 2021, the company continued to increase R & D investment in the fields of big data intelligence, Cyberspace Security and new smart city. The annual R & D investment was 540 million yuan, a year-on-year increase of 22.95%, and the revenue of R & D investment accounted for 21.30%. The company continued to increase R & D investment, providing strong support for the company to maintain advanced products.
The company’s cyberspace security business is growing rapidly. The company’s core cyberspace security products are electronic data forensics, network security big data, zero trust security protection and other related products. In 2021, the company continued to integrate big data research and judgment ability, zero trust security concept, full evidence chain electronic data forensics and research and judgment analysis ability into the research and development of electronic data forensics products, and the forensics support rate for new mobile phones, smart cars and IOT devices continued to increase. The company continues to carry out the “spark plan”, strengthen the sinking of districts and counties and improve the coverage of districts and counties. The company successfully completed the acceptance of China’s first network security big data platform project and successfully won the bid for the new municipal benchmark project. In 2021, the company’s business revenue of cyberspace security products increased rapidly by 22.65% year-on-year, and the business performance of cyberspace security products was good.
The company’s big data intelligent product business is under pressure. In 2021, the company continued to strengthen the transformation of big data products, focusing on building the “Qiankun” big data operating system (qkos), further “establishing the core framework status of Qiankun big data operating system, establishing a layered decoupling and open sharing R & D model”, combined with years of successful construction experience of public security big data, the company achieved horizontal replication and expansion and vertical layered decoupling, The company has gradually extended the data middle platform capability from public security big data to video image big data, network security big data, new smart city brain, enterprise big data, resident ID card electronic license big data and other fields. In the field of public security big data, the company continued to promote the construction of public security big data at the provincial, prefecture and municipal levels, and strengthened the replication, promotion and deployment of “Qiankun” big data operating system (qkos) in provinces, prefectures and cities. In the field of new smart city big data (Urban brain), in July 2021, the company and Xiamen big data Co., Ltd. jointly established Xiamen urban brain construction and Operation Co., Ltd. to be responsible for the investment, construction and operation of Xiamen urban brain project, help promote the construction of Xiamen smart city, focus on independent research and development of core products and high-quality ecological cooperation for win-win results. In the field of video image big data, the company successfully won the bid for a city’s video image medium platform project, and then added a standard pole project after Xiamen. However, affected by covid-19 epidemic all over the country, the orders of big data business opportunities of the company are delayed, and the implementation and acceptance of orders in hand are delayed. In 2021, the business revenue of big data intelligent products decreased by 10.19% year-on-year, and the big data business was under pressure in the current period. China’s economic growth is expected to benefit from the release of a number of national policies, which will support the company’s economic growth in 2022.
Profit forecast and investment suggestion: according to the company’s 2021 annual report, we adjusted the performance forecast and estimated that the net profit attributable to the parent company from 2022 to 2024 would be 395 million yuan (the former value was 681 million yuan), 494 million yuan (the former value was 882 million yuan), 627 million yuan (New), and EPS would be 0.49 yuan, 0.61 yuan and 0.78 yuan respectively. The PE corresponding to the closing price on March 29 would be 32.4, 25.9 and 20.4 times respectively. The company has actively expanded and upgraded its main business, expanding its business field from traditional electronic data forensics to Cyberspace Security, the whole track before, during and after the event, and other fields such as big data, artificial intelligence, smart city and intelligent equipment manufacturing, so as to further open the future growth space of the company. We are optimistic about the future development of the company and maintain the “recommended” rating of the company.
Risk tips: (1) the growth rate of Cyberspace Security business did not meet expectations. At present, the company’s electronic data forensics has entered the forensics 3.0 stage. On this basis, the company has widened the channel of network security and extended the “electronic data forensics” afterwards to the “Cyberspace Security”. If the progress of business extension is lower than expected, there is a risk that the company’s cyberspace security business will not develop as expected. (2) The development of big data intelligent business did not meet expectations. In terms of big data intelligent business, the company participated in the formulation of ministerial big data standards and built big data platforms in several front-line and provinces. If the promotion and construction progress of the company’s big data platform is lower than expected, there is a risk that the development of the company’s big data intelligent business will not meet expectations. (3) Business development in the international market did not meet expectations. The company is closely one with the national “one belt, one road” development initiative, deepening international police cooperation, and continuing to expand the market in Central Asia, Southeast Asia and Africa, and actively expanding the international market. However, if the promotion progress of the international version of the company’s electronic data forensics products in the international market is lower than expected, there is a risk that the development of the company’s international market business will not meet the expectations.
