\u3000\u30 Zhongyan Technology Co.Ltd(003001) 88 Xiamen Meiya Pico Information Co.Ltd(300188) )
The company released its annual report for 2021, with annual revenue of 2.54 billion yuan (+ 6.3%) and net profit attributable to parent company of 310 million yuan (- 17.1%). The performance met expectations, big data orders were delayed, and the electronic ID card catalysed significantly in 2022, maintaining the buy rating.
Key points supporting rating
The growth trend of core business is good, and the performance is in line with expectations. Q4 achieved a revenue of 1.29 billion yuan (- 1.1%) and a net profit of 280 million yuan (- 9.1%) in a single quarter, and the annual revenue of core business cyberspace security products was 1.38 billion yuan (+ 22.7%). The decline in net profit was mainly due to the impact of the epidemic on business opportunities such as big data, the delay in the acceptance of orders and orders in hand, and the increase in R & D investment (the company's R & D expenses increased by 22.9% year-on-year, and the R & D expense rate was 17.7%, with an increase of 2.4pct for four consecutive years).
Promote product transformation, open up the product line and improve the gross profit margin. While promoting the opening of various product lines, the company continues to improve the product reusability of "heaven and earth" big data operating system. The proportion of software revenue increased. The gross profit margin of big data intelligent products, the second largest source of revenue, was 55.5%, with a significant increase of 4.9pct, boosting the overall gross profit margin of 58.4% (+ 0.8pct). In the future, with the improvement of productization and reuse rate, the company's gross profit margin is expected to further increase.
The business area is further sinking, and the electronic certificate is promoted by the policy. The company actively cultivated new industries, expanded new regions, and successfully implemented new business practices such as network security big data platform and "TianDun" zero trust protection platform. In recent years, the "spark plan" has been continuously carried out to increase the coverage of districts and counties. In 2021, about 490 million yuan (+ 60%) was newly signed in the district and county market. Recently, the electronic ID card policy has been issued, which is expected to be implemented within the year. The company participates in the construction of ID card big data platform and data security, which is expected to usher in a business explosion.
Valuation
It is estimated that the net profit from 2022 to 2024 will be RMB 410 million, RMB 480 million and RMB 560 million, and EPS will be RMB 0.51, RMB 0.59 and RMB 0.69 (based on the performance in 2021 and the growth rate of e-Forensics business limited by financial investment, which may lead to the slowdown of the demand side, and the epidemic prevention and control requirements in 2022, the corresponding PE will be revised down by 48 ~ 56%), and the corresponding PE will be 32x, 27x and 23x respectively. The valuation level is low and the buy rating will be maintained.
Main risks of rating
Public security order extension; Project schedule fluctuation; The implementation of the policy was less than expected.
