\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
China is the leader in password security and maintains the “buy” rating
Considering the improvement of the company’s operating efficiency, we maintain the company’s forecast of net profit attributable to the parent company from 2022 to 2023 as 205 million yuan and 265 million yuan, the new forecast for 2024 as 336 million yuan, EPS as 220, 2.85 and 3.61 yuan / share, and the corresponding current price PE as 24.9, 19.2 and 15.2 times. As a leader in password security, the company’s product line continues to expand. We are optimistic about the company’s development prospects and maintain the “buy” rating.
Rapid growth of profits and improvement of business efficiency
The company released its annual report for 2021, realizing a total operating revenue of 525 million yuan, a year-on-year increase of 26.02%; The net profit attributable to the parent company was 154million yuan, a year-on-year increase of 43.63%. Main reasons: (1) first, the company strengthened the horizontal and vertical combination of industry and region in business, and the operating revenue increased rapidly, including the financial and government industries increased by 28.33% and 37.84% respectively; Second, the company has a high degree of productization, with a year-on-year increase in gross profit margin of 1.37 percentage points; Third, the company saved energy and increased efficiency through management, resulting in lower cost growth rate during the period.
The dominant position of the financial industry continued to consolidate, and the market share of the government sector increased
In the financial field, the company continues to consolidate its dominant position in the banking industry, and continues to follow up the RMB cross-border payment system (CIPS), cross-border payment management system, interest rate reporting system, phase II of electronic letter of credit, and the secure application of digital currency; Increase the layout of products and solutions in the pan financial fields such as securities, futures, funds and insurance, and provide security guarantee for its state secrets transformation projects. In the field of government, the company deepened the coverage of finance, human resources and social security, medical insurance, tobacco, transportation and other industries, added courts, public security and other industries, and increased market share.
New business scenarios such as the Internet of vehicles emerged, and the company made a forward-looking layout
In the direction of Internet of vehicles, the company participated in pilot projects such as the “pilot application demonstration project of Internet of vehicles and road collaborative security certification” of the Ministry of industry and information technology. After the completion of the project, it will play an important demonstration role in the application of Internet of vehicles password. In the direction of industrial Internet, the company provides password security for the “industrial Internet commercial password application public service platform project” of the Ministry of industry and information technology. At the same time, it has reached a cooperation with a key equipment manufacturing enterprise to provide password products for the production of its CNC machine tools. In the direction of cloud security, the government cloud scheme won the excellent scheme evaluation of the Ministry of industry and information technology, and provided centralized construction password support for government systems for many provinces, cities and regions such as Hunan, Hubei, Shanxi and Guizhou.
Risk warning: the product line cannot adapt to market development, the risk of loss of core technicians and the risk of goodwill impairment.
