\u3000\u3 China Vanke Co.Ltd(000002) 439 Venustech Group Inc(002439) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 4.386 billion yuan, a year-on-year increase of 20.27%; The net profit attributable to the parent company was 862 million yuan, a year-on-year increase of 7.15%, in line with market expectations.
Key investment points
Revenue grew steadily, and strong strategic investment led to pressure on profits: in 2021, the company achieved an operating revenue of 4.386 billion yuan, a year-on-year increase of 20.27%, and the growth rate increased by 2.23 PCT year-on-year; The net profit attributable to the parent company was 862 million yuan, a year-on-year increase of 7.15%. The decline in net interest rate was mainly due to the company's new business layout stage in 2021 and strong strategic investment. By the end of 2021, the total number of employees had reached 6587, a year-on-year increase of 22.41%. R & D expenses amounted to 846 million yuan, accounting for 19.28% (year-on-year + 1.64 PCT) of operating revenue, sales expenses amounted to 1.102 billion yuan, accounting for 25.13% (year-on-year + 3.31 PCT) of operating revenue, and management expenses amounted to 215 million yuan, accounting for 4.90% (year-on-year + 0.47 PCT) of operating revenue. In terms of business, the company's revenue of safety products was 2.927 billion yuan, with a year-on-year increase of 15.47% and a gross profit margin of 65.89% (year-on-year + 3.03pct); The revenue of safe operation and service business was 1.432 billion yuan, with a year-on-year increase of 30.95% and a gross profit margin of 66.36% (year-on-year + 0.36pct). The company strengthened the management of accounts receivable. In 2021, accounts receivable increased by 10.24% year-on-year, slowing down the growth rate and ensuring healthy cash flow.
Smooth channel expansion and rapid growth of strategic emerging businesses: the company has continuously strengthened sales management, deployed the "Mayor plan" in more than 60 prefectures and cities, and actively developed the sinking channel system. In 2021, the strategic emerging business expanded smoothly, and the data security business realized an operating revenue of 912 million yuan, a year-on-year increase of 52%; The operating revenue of new track products such as EDR (terminal detection and response), full flow detection, deception defense, Xinchuang products and attack surface management all increased by more than 300%. In the new business segments of data security 2.0 and 3.0, security operation center, industrial Internet Security and yun'an, the operating revenue was 1.554 billion yuan, a year-on-year increase of 48%. By the end of 2021, the company has built 119 urban safety operation centers. With the promotion of the "mayor's plan" in 2022, the company's emerging business market is expected to continue to expand.
The equity incentive plan demonstrates the confidence of the company: the company issued the draft restricted stock incentive plan in March 2022, which plans to grant incentives to 1110 executives and core backbone of the company, and the number of restricted shares to be granted is 28 million shares, accounting for about 3% of the total share capital of the company at the time of the announcement of the draft. The assessment objective is to take the revenue of 2021 as the base, and the growth rate of operating revenue from 2022 to 2024 shall not be less than 20%, 45% and 70% respectively, or take the net profit of 2021 as the base, and the growth rate of net profit from 2022 to 2024 shall not be less than 25%, 55 and 85% respectively. The performance appraisal objective shows the company's confidence in future development.
Profit forecast and investment rating: considering that the company continues to increase its investment in personnel, we will reduce the EPS from 1.50/1.92 yuan to 1.16/1.45 yuan in 20222023, and it is expected that the EPS will be 1.77 yuan in 2024. The current market value corresponds to 18 / 14 / 12 times of PE from 2022 to 2024. The company's channel construction has been promoted rapidly, and the layout of strategic emerging businesses has been effective. It is expected to bring sustained high growth in the future and maintain the "buy" rating.
Risk tip: the business progress is not as expected, and the procurement progress of a single industry is uncertain.
