\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
Key investment points
Event: the company released the performance report for 2021. In 2021, the company achieved a revenue of 520 million yuan, a year-on-year increase of 26.0%; The net profit attributable to the parent company was 150 million yuan, a year-on-year increase of 43.6%; The net profit deducted from non parent company was 150million yuan, an increase of 40.5% year-on-year.
Deeply cultivate the financial industry, lay out the government and enterprise fields, and the revenue and profit increased rapidly. In 2021, the company achieved a revenue of 520 million yuan, a year-on-year increase of 26.0%. Among them, the financial industry, as the company's traditional advantageous industry, has maintained stable and rapid growth, and the government industry vigorously expanded by the company in recent years has a strong growth rate. In 2021, the company realized a net profit attributable to the parent company of 160 million yuan, a year-on-year increase of 43.6%, deducting a net profit not attributable to the parent company of 150 million yuan, a year-on-year increase of 40.5%. The growth rate of the company's net profit increased mainly due to: 1) the company strengthened the horizontal and vertical combination of industry and region in business, and the operating revenue increased rapidly; 2) The company has a high degree of productization and a slight increase in gross profit margin; 3) By managing energy conservation and efficiency enhancement, the overall cost growth rate during the period is less than the revenue growth rate.
Continue to increase R & D investment and product iteration to help the layout of business formats. In 2021, the company strengthened the development of password security products and network security products, optimized and enriched the product structure, and continued to meet the security needs of network applications of new and old customers. In 2021, the company released new products such as Xin'an IMC unified management center system and Xin'an nettsa trusted timestamp server, and improved security solutions for cloud computing and Internet of vehicles. In the technical fields including homomorphic encryption, privacy computing and cloud computing, the company has obtained 36 invention patents. While continuously promoting the application of domestic cryptographic algorithms, the company actively carries out the innovation and application of information technology. At present, based on domestic chips such as Zhaoxin, Haiguang and Feiteng, the company has released a number of products of Ding'an series - information technology application innovation series, and the products have been fully adapted to domestic operating systems such as Galaxy Kirin and Tongxin.
Laws and regulations and information technology are becoming more and more mature, promoting the rapid development of the network security industry. In 2021, the state issued a number of policies and regulations to improve the compliance requirements of financial, government and enterprise customers for network information security, drive the investment of finance, government and enterprises in network information security, and promote the rapid development of network security industry. At the same time, with the rapid development of new information technologies such as cloud computing, big data, Internet of things and artificial intelligence, the network environment faced by users is becoming more and more complex, and the demand for products and services is constantly enriched and refined, which promotes the rapid development of network security industry.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.17 yuan, 2.84 yuan and 3.70 yuan respectively, and the net profit attributable to the parent company will reach a compound growth rate of 30.71% in the next three years. Considering that the policy promotes the increase of industry demand, the company continues to strengthen the development of new products and optimize and enrich the product structure. It is expected that the order volume of the company will increase significantly in 2022. The company is valued at 30 times in 2022, corresponding to the target price of 65.10 yuan. It is covered for the first time and given a "buy" rating.
Risk tips: R & D projects are not as expected, customer development is not as expected and other risks.
