\u3000\u3 China Vanke Co.Ltd(000002) 439 Venustech Group Inc(002439) )
The company released its annual report for 2021, achieving revenue of 4.39 billion yuan (+ 20.3%), net profit attributable to parent company of 860 million yuan (+ 7.2%), and deduction of non net profit of 760 million yuan (+ 8.7%). The performance met expectations and maintained the buy rating.
Key points supporting rating
The performance is in line with expectations and at the peak of investment. The performance meets the forecast scope; Q4 achieved a revenue of 2.29 billion yuan (+ 3.9%) and a net profit attributable to the parent company of 880 million yuan (+ 19.2%). The growth rate of the revenue side is expected to slow down slightly due to the epidemic in the current quarter. The revenue of safety products and services was 2.93 billion yuan (+ 15%) and 1.43 billion yuan (+ 31%) respectively, and the gross profit margin increased by 3.0pct (to 65.9%) and remained the same, reflecting that the company's industrial chain status and project management level remained good. The R & D and sales expenses reached 850 million yuan (+ 31.5%) and 1.1 billion yuan (+ 38.5%) respectively, and the number of employees increased by more than 1200 (+ 22.4%), which were higher than the growth rate of revenue, reflecting that the company is currently in the stage of new product investment, which is similar to other industry leaders.
The rapid growth of new business will become a new driving force. In 2021, the total revenue of new business segments such as data security 2.0 and 3.0, security operation center, industrial Internet Security and cloud security was 1.55 billion yuan (+ 48%). The revenue of new track products such as EDR, full flow detection, deception defense and Xinchuang products increased by more than 300% at the same time. By deploying the "Mayor plan" marketing strategy in more than 60 prefectures and cities, the revenue of emerging regions such as northeast and East China increased by 230% and 41% respectively. With reference to the company's development strategy and downstream prosperity, it is expected that new safety products will continue to increase significantly in 2022.
Continue to highlight the security operation center strategy. The company is leading the industry in developing security operation center business. By the end of 2021, it has built 119 operation centers for different security issues. The operation center has the functions of business support and regional marketing hub. In the future, with the channel sinking strategy, it can effectively enhance the business penetration and ensure the sustainable growth of performance.
Valuation
It is estimated that the net profit from 2022 to 2024 is predicted to be 1.04 billion yuan, 1.34 billion yuan and 1.68 billion yuan, EPS is 112 million yuan, 143 million yuan and 1.80 yuan (slightly revised down by 4 ~ 6%), and the corresponding PE is 18x, 14x and 11x. The valuation at the bottom is unreasonable compared with the company's sound foundation and growth, and the buy rating is maintained.
Main risks of rating
Government investment is less than expected; Market competition intensifies.
