\u3000\u3 China Vanke Co.Ltd(000002) 439 Venustech Group Inc(002439) )
Matters:
The company announced in its 2021 annual report that in 2021, it achieved an operating revenue of 4.386 billion yuan, a year-on-year increase of 20.27%, and a net profit attributable to the parent company of 862 million yuan, a year-on-year increase of 7.15%. The profit distribution plan for 2021 is: it is proposed to allocate 0.25 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 grew rapidly and its leading position in the industry was stable. In 2021, the company’s operating revenue was 4.386 billion yuan, a year-on-year increase of 20.27%, and its revenue achieved rapid growth. In terms of products, the company’s safety product business realized a revenue of 2.927 billion yuan, a year-on-year increase of 15.47%; The revenue of security operation and service business was 1.432 billion yuan, a year-on-year increase of 30.95%. The net profit attributable to the parent company was 862 million yuan, with a year-on-year increase of 7.15%, and the net profit attributable to the parent company increased steadily. The year-on-year growth rate of net profit of the parent company was 34.68% lower than that of the parent company. Since its establishment, after 26 years of development and accumulation, the company has grown into a leading enterprise in China’s network security industry. The company’s various products have maintained the first market share for many years, the technical ability has always maintained a leading position, and the leading position in the industry is stable.
The company’s gross profit margin and period expense rate increased year-on-year, and R & D investment continued to increase. In 2021, the company’s gross profit margin was 65.99%, a year-on-year increase of 2.12 percentage points, mainly because the gross profit margin of safety products business increased by 3.03 percentage points year-on-year. The company’s expense rate during the period was 49.08%, with a year-on-year increase of 5.25 percentage points, mainly because 2021 is the year of strong strategic investment of the company, with a year-on-year increase of 22.41% in personnel, a higher increase in personnel than in previous years, and a year-on-year increase in employee compensation. In 2021, the company continued to increase R & D investment, with an amount of 851 million yuan, a year-on-year increase of 29.35%, and the revenue of R & D investment accounted for 19.41%, a year-on-year increase of 1.37 percentage points.
The company’s strategic emerging business performed well. The company actively laid out strategic emerging businesses, established a data security headquarters in Hangzhou, released the data oasis technical framework, and proposed the evolution path of data security from 1.0 data object security to 2.0 data aggregation security, and then to 3.0 data circulation security. In 2021, the company’s data security business realized revenue of 912 million yuan, with a year-on-year increase of 52%, of which data security 2.0 and 3.0 realized revenue of 312 million yuan. By the end of 2021, the company has built 119 urban safety operation centers in total. In data security 2.0 and 3.0, security operation center, industrial Internet Security and cloud security, the company achieved a revenue of 1.554 billion yuan, a year-on-year increase of 48%. The company continues to innovate, and the revenue of new track products such as EDR (terminal detection and response), full flow detection, deception defense, Xinchuang products and attack surface management has increased by more than 300%. Cloud resource pool, situation awareness, threat analysis all-in-one machine, network security shooting range and other products also achieved high growth. The company’s strategic emerging business will become an important driving force for the sustained and rapid growth of the company’s revenue in the future.
Profit forecast and investment suggestions: 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 1.055 billion yuan (the former value was 1.301 billion yuan), 1.281 billion yuan (the former value was 1.650 billion yuan) and 1.549 billion yuan (New), respectively. EPS would be 1.13 yuan, 1.37 yuan and 1.66 yuan respectively, and the PE corresponding to the closing price on April 7 would be 18.2, 15.0 and 12.4 times respectively. The company is a leading enterprise in China’s network security industry. A variety of products have maintained the first market share for many years, the technical ability has always maintained a leading position, and the leading position in the industry is stable. In 2021, the company’s strategic emerging businesses such as data security 2.0 and 3.0, security operation center, industrial Internet Security and cloud security performed well, and will become an important driving force for the sustained and rapid growth of the company’s revenue in the future. We are optimistic about the future development of the company and maintain the “strongly recommended” rating of the company.
Risk tips: (1) the risk of goodwill impairment. The company has acquired subsidiaries such as Shusheng electronics and Hezhong data through active extension M & A. if the company cannot realize effective integration with the acquired subsidiaries in the future, and the acquired subsidiaries cannot continue to maintain good operating conditions, the company is at risk of goodwill impairment. (2) The progress of the company’s smart city safe operation business did not meet expectations. At present, the company has launched safety operation centers in Chengdu and other places, but the successive launch of other safety operation centers has the risk of not meeting the expectations, resulting in the progress of the company’s smart city safety operation business not meeting the expectations. (3) The development of the company’s industrial Internet security business did not meet expectations. At present, the company’s industrial Internet security products are in the first echelon of the industry, but the network security products and technologies have been continuously updated and iterated. If the company cannot continue to maintain the leading position of industrial Internet security products, the development of the company’s industrial Internet security business is at risk of falling short of expectations.
