\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
Event:
The company released its annual report for 2021. In 2021, the company realized a total operating income of 525 million yuan and a net profit attributable to the parent of 154 million yuan, including 143 million yuan after deduction.
The company also issued a profit distribution plan, which plans to pay a cash dividend of 0.5 yuan per share, with a total dividend of 46.56 million yuan, accounting for 30% of the net profit attributable to the parent company in 2021.
Comments:
1. The growth rate of net profit is faster than that of revenue, and the productization ability is prominent
In 2021, the company realized an operating revenue of 525 million yuan, a year-on-year increase of 26.02%; The net profit attributable to the parent company was 154 million yuan, a year-on-year increase of 43.63%, of which the net profit attributable to the parent company after deduction was 143 million yuan, a year-on-year increase of 40.54%. The growth rate of the company’s net profit exceeded the growth rate of revenue. We believe that the main reason is that the company’s password solutions are highly productized. With the increase of sales volume, the company’s gross profit margin shows an upward trend. At the same time, the growth rate of the company’s expenses is less than the growth rate of revenue, resulting in a significant increase in the profit side.
2. The dominant position of the financial industry is maintained, and the pan financial and government markets continue to expand
From the perspective of downstream customers, the company’s revenue in the financial, government and enterprise fields accounted for 57%, 18% and 24% respectively, of which the revenue of the financial and government industries increased by 28.33% and 37.84% respectively. The company is in a leading position in the banking field and deeply participates in the security applications such as CIPS, cross-border payment management system and digital currency. At the same time, based on the advantages of the banking industry, the company’s products continue to extend in the pan financial field and are widely used in the state secret transformation of securities, futures, funds, insurance and other industries. In the field of government market, we will deepen the coverage of finance, human resources and social security, medical insurance, tobacco, transportation and other industries, add new industries such as courts and public security, and improve the market share.
3. Based on password security, the expansion of product line has been steadily promoted
In 2021, the company completed the acquisition of 100% equity of Huayao technology, which is an industry-leading supplier of products and solutions for application delivery and virtual private network. We believe that Huayao’s advantages in the field of network security will have a better synergy with the company’s years of accumulation in the field of password security, and help the company expand its product line and enhance its business scale. In addition, the company continued to increase R & D investment and improved security solutions in cloud computing and Internet of vehicles scenarios.
Investment advice
Based on the continuous promotion of the company’s password products in finance, government and other fields, as well as the continuous expansion of product line, we adjusted the previous financial forecast and predicted that the company’s revenue from 2022 to 2024 would be 708 / 921 / 1178 million yuan (the original forecast of 2022 / 2023 was 710 / 959 million yuan), and the net profit attributable to the parent company would be 196 / 261 / 353 million yuan (the original forecast of 2022 / 2023 was 203 / 280 million yuan), maintaining the “buy” rating
Risk tip: the transformation process of state secret algorithm is not as expected; Repeated outbreaks have slowed down the progress of the project; Intensified market competition, etc
