\u3000\u3 China Vanke Co.Ltd(000002) 439 Venustech Group Inc(002439) )
Investment Event: the company released the annual report of 2021: the operating revenue in 2021 was 4.386 billion yuan, a year-on-year increase of 20.27%; The net profit attributable to the parent company was 862 million yuan, with a year-on-year increase of 7.15%. Excluding the impact of share based payment fees and social security relief in the same period last year, the net profit attributable to the parent company increased by about 14% year-on-year; Net profit deducted from non parent company was 764 million yuan, with a year-on-year increase of 8.74%.
The company entered the first year of Data Security 3.0 and developed the security operation center with high quality. In 2021, the company's annual operating revenue was 4.386 billion yuan, with a year-on-year increase of 20.27%, and the growth of revenue accelerated. The main reasons for the performance growth are: firstly, Venustech Group Inc(002439) continued to strengthen the network security operation strategy; secondly, the company attaches importance to the situational needs of industrial users. 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. By the end of 2021, Venustech Group Inc(002439) has built a total of 119 urban safety operation centers. The "Mayor plan" deployed by the company in the regional market is coupled with the strategy of independent safety operation center to rapidly improve customer value. In terms of breakdown, the company's data security business achieved an operating revenue of 912 million yuan in 2021, an increase of 52% over the same period last year; In 2021, the company achieved an operating revenue of 1.554 billion yuan in the new business segments of data security 2.0 and 3.0, security operation center, industrial Internet Security and yun'an, an increase of 48% over the same period of last year; At the same time, the company continues to innovate, and the operating revenue of new track products such as EDR, 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 has strong strategic investment, the gross profit margin has rebounded, and the profitability has maintained the leading position in the industry. In 2021, the gross profit margin of the company was 65.99%, with a year-on-year increase of nearly 2.1pcts. 2021 is a year of strong strategic investment for the company. It has made great efforts to layout new businesses. The R & D and marketing expenses have increased by 35.38% and the personnel growth has increased by 22.41% over the same period of last year. In terms of details, R & D focuses on new track products in high growth business, innovative business and mature business, and marketing investment focuses on the strategy of safety operation center. The company continues to optimize the business structure and management mechanism of the front, middle and back fields, deepen the understanding of the needs of customers in the industry through the "Legion system", and make a deep penetration in the vertical market of the industry. In addition, the share based payment generated by the company's employee stock ownership plan in 2021 and the social security relief due to the epidemic in 2020 totaled about 147 million yuan. Excluding the above two factors, the growth rate of net profit attributable to the parent company increased by about 14% during the reporting period. While the company is under great pressure on the profit side, its profit level remains ahead of the industry.
The demand side of the network security industry is strong, leading companies continue to break through themselves, and their performance will grow steadily and healthily. 2022 is a year of continuous implementation of China's network security policies. With the implementation of important documents such as the data security law of the people's Republic of China, the three-year action plan for the high-quality development of the network security industry (20212023) (Draft for comments), the regulations on the security protection of key information infrastructure and the personal information protection law of the people's Republic of China, the system of network security laws and regulations has been basically completed, We will continue to increase investment in safety. The new applications and new scenarios of digital transformation have expanded the scope and market space of network security. With the continuous increase of national investment in the construction of new infrastructure such as "counting from the east to the west" project, 5g + industrial Internet, industrial supply chain, data transaction and edge network, network security has also entered the era of digital security. The company has a profound traditional safety heritage. At the same time, it has actively arranged new tracks and made great progress. It has obvious core competitive advantages and is expected to achieve sustained, stable and healthy growth in revenue scale.
Investment suggestion: Venustech Group Inc(002439) is the leader of China's network security. On the basis of rich traditional security heritage, the company also actively layout on emerging tracks, with remarkable results. The company will continue to selectively increase R & D investment in 2022. The company has a solid position in its traditional safety business and a broad space for the growth of emerging businesses. With the maturity of the "corps system" and the continuous implementation of the "mayor's plan", the company will continue to grow steadily and healthily. Considering the impact of the epidemic on raw materials and the overall industry, the company's revenue growth expectation was lowered. It is estimated that the company's revenue from 2022 to 2024 will be 5.46 billion yuan, 6.786 billion yuan and 8.332 billion yuan (5.888 billion yuan and 7.395 billion yuan in the previous 22-23 years), with a year-on-year increase of 24%, 24% and 23%; The net profit attributable to the parent company was 1.029 billion yuan, 1.284 billion yuan and 1.593 billion yuan (1.341 billion yuan and 1.718 billion yuan in the 22-23 years before adjustment), with a year-on-year increase of 19%, 25% and 24%. At the same time, we expect the three fee rate to be lower than that in 2021. The company's EPS in 2022, 2023 and 2024 were 1.10/1.38/1.71 yuan respectively (the original forecast of 22-23 years was 1.44 yuan / 1.84 yuan), which was rated as "buy".
Risk tip: the business development is not as expected, the impact of the epidemic, and the competition in the information security industry is intensified
