\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 69 Nsfocus Technologies Group Co.Ltd(300369) )
Event: Nsfocus Technologies Group Co.Ltd(300369) 4 on the evening of April 14, the annual report of 2021 was released, and the annual revenue was 2.609 billion yuan, a year-on-year increase of 29.80%; The net profit attributable to the parent company was 345 million yuan, a year-on-year increase of 14.42%; Net profit deducted from non parent company was 236 million yuan, a year-on-year decrease of 8.64%; The basic earnings per share is 0.44 yuan. In the early stage, we predicted that the revenue and net profit attributable to the parent company in 2021 were RMB 2.611333 billion respectively, and the performance was in line with expectations.
Comments:
The market share of core products remains in the lead
According to the statistics of IDC China’s network security market segment in 2021, Lvmeng anti DDoS hardware security products ranked first with a market share of 24.2%, hardware WAF ranked first with a market share of 14.3%, response and orchestration software ranked first with a market share of 19.5%, and Nsfocus Technologies Group Co.Ltd(300369) situational awareness solution was selected as the leader of marketscape.
The competition in the industry intensified and the profit margin decreased significantly
Competition in the industry intensified in 2021. Although the company achieved rapid growth in revenue by improving resale products, the profit margin decreased significantly. The company’s main customer groups, such as finance, telecommunications, government, enterprises and other industries, experienced a decline in gross profit margin. The sales gross profit margin was 61.39%, a year-on-year decrease of 9.04pct, and the sales net profit margin was 13.22%, a year-on-year decrease of 1.77pct.
Continue to increase R & D investment
By the end of 2021, the company had 1237 R & D personnel, with a year-on-year increase of 33.3%. The annual R & D investment was 536 million yuan, with a year-on-year increase of 46.84%. A talent introduction mechanism of “school recruitment as the main and social recruitment as the supplement” was gradually formed, laying a solid foundation for the long-term development of the company.
Profit forecast and valuation
Taking into account the intensification of industry competition and changes in sector valuation and other factors, we adjusted the revenue of 202223 to RMB 3.2353947 billion (original value: RMB 3.364 billion and RMB 4.273 billion), the net profit attributable to the parent company to RMB 360445 million respectively (original value: RMB 4.736 billion, net profit: RMB 555 million, EPS: RMB 0.45/0.56/0.70/share, corresponding PE: 24x / 20x / 16x respectively. We lowered it to the “overweight” rating.
Risk tips
Systemic risk, industry demand falling short of expectations, risk of intensified competition, risk of being replaced by emerging technologies.
