\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 69 Nsfocus Technologies Group Co.Ltd(300369) )
Event:
The company issued the 2021 annual report after the closing on April 14, 2022.
Comments:
The operating revenue increased by 29.80% year-on-year, and the market share of various products maintained a leading position
In 2021, the company achieved an operating revenue of 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%; The net profit deducted from non parent company was 236 million yuan, a year-on-year decrease of 8.64%. In terms of products, the revenue of safety products was 1.602 billion yuan, a year-on-year increase of 19.48%; The revenue from security services was 741 million yuan, a year-on-year increase of 15.24%; The revenue from third-party products and services was 264 million yuan, a year-on-year increase of 974.61%. The company’s various products continue to maintain the leading market share in China, and its core products are recognized by authoritative institutions at home and abroad. According to the data released by IDC in 2021, the company’s anti DDoS hardware security products ranked first in the Chinese market with a market share of 24.2%; Web application protection system ranks first in China’s hardware WAF market with 14.3% market share.
Keep up with the development trend of network security technology, and constantly innovate products and services
In 2021, the company’s sales, management and R & D expenses were 712 million yuan, 166 million yuan and 503 million yuan respectively, and the rates of sales, management and R & D expenses were 27.30%, 6.35% and 19.29% respectively. In 2021, the company released Green Alliance security access service edge SASE, green alliance Cyberspace Security Simulation Platform CSSP, Green Alliance Industrial Security Gateway ISG, green alliance security operation value-added service VAS, green alliance advanced threat hunting ATH, green alliance full flow threat analysis and response system isop-ndr, green alliance telecom network anti fraud platform AFP, Green Alliance edge computing intelligent gateway sgec, green alliance business security gateway BMG, green alliance security access scheme SDP Green Alliance integrated terminal security management system ues and green alliance protection breakthrough simulation and evaluation system bas have a total of 12 new products. At present, the company has more than 70 product categories. In terms of marketing, the company continues to implement and improve the channel sales mode of “company + channel” joint expansion, and relies on the “amplifier” function of channel sales to expand the business scale and realize rapid payment collection at the same time.
Strengthen investment in the field of information innovation and launch information innovation products such as Feiteng, Haiguang and Zhaoxin
In 2021, the company continued to strengthen investment in the field of information and innovation, and successively launched Feiteng 4-core, 8-core, haiguang, Zhaoxin and other information and innovation products. Lvmeng Xinchuang NF firewall won the third prize of “two cores and one ecology” Xinchuang competition hosted by China Electronics Industry Standard Committee, Hunan industry and information department and Changsha National chain; NF firewall was selected into the recommendation Manual of the second China I2S summit and won the title of “2021 recommended product (sky mending) with potential for exchange, promotion and application of independent innovation achievements of wechat”; Xinchuang cloud security solution won the “star of cloud security solutions in 2021” issued by network security and information magazine and it operation and maintenance network.
Profit forecast and investment suggestions
With the promotion of Digital China strategy, the company continues to innovate network security products and solutions. The joint expansion mode of ” Nsfocus Technologies Group Co.Ltd(300369) + partners” has achieved remarkable results and has broad growth space in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be RMB 3.288, 4.066 and 4.928 billion, the net profit attributable to the parent company will be RMB 443, 562 and 697 million, the EPS will be RMB 0.55, 0.70 and 0.87/share, and the corresponding PE will be 19.40, 15.29 and 12.33 times. In the past three years, the company’s PE has mainly operated between 25-95 times. Considering the recent changes in market valuation level, the company’s target PE in 2022 is adjusted to 40 times, and the corresponding target price is 22.00 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; Loss of core personnel; Risks of overseas market expansion; The promotion of channel strategy is less than expected
