\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
[key points of investment]
Revenue grew steadily and profits soared. The company released its 2021 annual report. In 2021, it achieved a revenue of 525 million yuan, a year-on-year increase of 26.02%, basically in line with previous expectations. In the whole year, the net profit attributable to the parent company was 154 million yuan, with a year-on-year increase of 43.63%, and the net profit growth exceeded expectations. The non net profit deducted was 143 million yuan, a year-on-year increase of 40.54%. Operating net cash flow was 94 million yuan, a year-on-year increase of – 7.35%. 21q4 achieved a revenue of 267 million yuan in a single quarter, a year-on-year increase of + 22.26%. In Q4, the net profit attributable to the parent company and the net profit deducted from non net profit in a single quarter were 105 million yuan and 103 million yuan respectively.
Improve the degree of productization, reduce costs and increase efficiency, and promote healthy growth. The increase of gross profit margin and the decrease of expense rate drive the sharp increase of the company’s profits. The product business model and efficient management realize cost reduction and efficiency increase, and the company maintains healthy growth. In 2021, the gross profit margin was 72.12%, with a year-on-year increase of 1.37pct, and the net profit margin was 27.80%, with a year-on-year increase of 1.09pct. Many expense rates have been reduced. The company implements the matrix sales mode of vertical industry + horizontal region to continuously deepen the industry understanding, improve marketing efficiency and achieve cost reduction and efficiency increase. The annual sales expenses were 96 million yuan (+ 24.02%), management expenses were 41 million yuan (+ 26.19%), and R & D expenses were 100 million yuan (+ 23.15%).
The financial and insurance industry continued to consolidate, and the government and enterprise markets grew rapidly. In terms of industries, the company continues to consolidate its leading position in the financial field. In the financial field, relying on its advantageous position in the banking industry for many years, the company continues to follow up the information security work of new applications such as CIPS, cross-border payment management, interest rate reporting system and digital currency. At the same time, it provides state secret transformation related products and services for Pan financial institutions such as securities and futures, and achieves a revenue of 299 million yuan in the financial and insurance industry, A year-on-year increase of 28.96%. In the field of government, the company continued to go deep into advantageous industries such as finance, human resources and social security, medical insurance and tobacco, added customers in the court and public security industries, and the Ministry of transport and the State Tobacco Monopoly Bureau were all company users. The revenue of government institutions and industries was 93 million yuan, with a year-on-year growth rate of 37.27%. The enterprise’s market revenue was 126 million yuan, a year-on-year increase of 8.13%. The financial / government / enterprise market gross profit margin was 76.38% / 66.71% / 68.03% respectively, with a year-on-year change of + 3.29pct / + 1.23pct / – 1.16pct respectively.
Emerging fields are active and enterprising, with continuous breakthroughs in vehicle + cloud + industrial control and other fields. The company actively explores new technical directions and continues to expand emerging fields. In terms of Internet of vehicles security, the company has participated in pilot projects such as the “pilot application demonstration project of Internet of vehicles and road collaborative security certification”, “Internet of vehicles v2x network trust support application project” and “intelligent highway Internet of vehicles and road certification security system construction and operation project” of the Ministry of industry and information technology. The company provides password security for the “public service platform project of industrial Internet commercial password application” of the Ministry of industry and information technology, and 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 company’s Government cloud scheme won the excellent scheme evaluation of the Ministry of industry and information technology, and provided password support for the centralized construction of government systems in Hunan, Hubei, Shanxi, Guizhou and other regions
[investment suggestions]
The company is a high-quality information security manufacturer, has established a good brand in the financial field, and has grown rapidly in the government industry and emerging technology markets. Due to the regional epidemic or interference with the company’s project progress, we slightly reduced the revenue forecast from 2022 to 2023; Due to the improvement of the gross profit margin of the company’s products and remarkable achievements in cost control, the forecast of net profit attributable to the parent company from 2022 to 2023 was slightly raised, and the profit forecast of the company for 2024 was introduced. It is estimated that from 2022 to 2024, the operating revenue of the company will be RMB 666 / 845 / 1066 million respectively, the net profit attributable to the parent company will be RMB 203 / 264 / 339 million respectively, the EPS will be RMB 2.18/2.84/3.64 respectively, and the corresponding PE will be 25 / 19 / 15 times respectively, maintaining the “buy” rating.
[risk tips]
The risk that the growth of new demand in the field of financial technology is less than expected;
Risk of IT budget reduction in the financial industry;
The expansion of the company’s product line is less than the expected risk;
The introduction of on-board middleware products into the vehicle factory is less than the expected risk.
