\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 69 Nsfocus Technologies Group Co.Ltd(300369) )
In 2021, the revenue increased steadily, and the revenue of 22q1 maintained a high growth rate. In 2021, the company realized revenue of 2.609 billion yuan (+ 29.80%), net profit attributable to parent company of 345 million yuan (+ 14.42%), net profit not attributable to parent company of 236 million yuan (- 8.64%). In Q4 alone, the company achieved revenue of 1.377 billion yuan (+ 29.03%), net profit attributable to the parent company of 375 million yuan (+ 21.31%), and net profit not attributable to the parent company of 286 million yuan (- 2.03%). The company released the forecast for the first quarter of 2022. It is expected that the revenue of 22q1 will be 318332 million yuan, with an increase of 31% - 36%. The net profit attributable to the parent company will be a loss of 110130 million yuan, and the loss in the same period last year will be 45 million yuan. 22q1 share based payment fee is about 24 million yuan and public welfare fund expenditure is about 8 million yuan.
Investment in R & D increased. In 2021, the investment of the company increased, and the personnel increased by nearly 30%, including the R & D personnel increased by 33.3%. The company's sales expense ratio was 27.30%, down 3.09pct; The management fee rate was 6.35%, down 0.49pct; The R & D expenditure rate was 19.29%, an increase of 1.52pct. The company's net cash flow from operating activities was 76 million yuan (- 83%), mainly due to the large increase in cash paid for purchasing goods and employee compensation expenses. The company's inventory was 148 million, with a large increase, mainly due to the increase of nearly 70 million in raw material preparation.
The gross profit margin decreased significantly, mainly due to the increase of third-party income. In 2021, the company's gross profit margin was 61.39%, down by more than 9 PCT. In terms of business splitting, the revenue of safety products was 1.602 billion yuan (+ 19.48%), and the gross profit margin decreased by 2.56 PCT; The safety service revenue was 741 million yuan (+ 15.24%), and the gross profit margin decreased by 10.91 PCT, but the service gross profit margin remained at a high level of 62.23%; The revenue from third-party products and services was 264 million yuan (+ 975%), and the gross profit margin was 20.29%, an increase of 15.34 PCT. The company's overall net profit margin was 13.22%, down 1.77pct from last year, but it remained at the normal level in recent years. At the industry level, finance increased by 0.75%, telecom operators increased by 38.46%, energy and enterprises increased by 35.86%, and governments and public institutions increased by 37.70%. With the support of CETC shareholders, the company's government revenue has reached 36%, and has become the largest industry of the company.
The security market grew steadily, and the company increased its product layout. According to IDC data, China's network security related expenditure is expected to reach US $10.26 billion in 2021. It is estimated that by 2025, China's network security expenditure will reach US $21.46 billion, with a compound growth rate of 20.5%. In IDPs, WAF, DDoS and other fields with traditional advantages, the company still maintains the first market share. In 2021, the company released 12 new products, including SASE, CSSP, SDP, and more than 70 product categories. With the gradual enrichment of product matrix, the overall scheme ability of the company is further strengthened.
Risk tip: the epidemic situation repeatedly affects the normal operation rhythm of the company, and the industry competition intensifies
Investment advice: maintain the "buy" rating. It is estimated that the operating revenue from 2022 to 2024 will be 3.293/4.104/5.022 billion yuan, with growth rates of 26% / 25% / 22% respectively, and the net profit attributable to the parent company will be 4.35/5.49/666 billion yuan, corresponding to 20 / 16 / 13 times of the current PE, maintaining the "buy" rating.
