\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 69 Nsfocus Technologies Group Co.Ltd(300369) )
Event:
The company released its annual report for 2021. In 2021, the company realized a total operating income of 2.609 billion yuan and a net profit attributable to the parent of 345 million yuan, including 236 million yuan after deduction. The company also released the performance forecast of 2022q1. The company expects to achieve an operating revenue of 318332 million yuan, a net loss attributable to the parent of 110130 million yuan and a net loss attributable to the parent of 109129 million yuan after deducting non profits.
Comments:
1. The performance in 21 years was in line with expectations, and the revenue growth in 22q1 exceeded expectations
Overall, the company's 21-year performance is in the median of the forecast range, in line with expectations. The company's 22q1 revenue growth slightly exceeded the expectation, and the net loss attributable to the parent company expanded greatly. We believe that the company's 21q1 net loss base is low, resulting in a large percentage change; At the same time, the Q1 revenue of the company accounts for a relatively low proportion of the annual revenue, and the profit level in the first quarter has little reference significance for the annual profit level.
2. The company is in the deep-water area of reform, and there is still marginal room for improvement in the future
In terms of revenue structure, the proportion of safety products, safety services, third-party products and services in 21 years was 61.42%, 28.42% and 10.13% respectively, of which the proportion of third-party products and services increased significantly.
From the perspective of the distribution of downstream customer industries, the revenue of the company, government institutions and others, energy and enterprises, operators and the financial industry accounted for 36%, 25%, 23% and 16% respectively, of which the proportion of the financial industry decreased.
In terms of profitability, the company achieved a gross profit margin of 61.39% in 2021, a decrease of about 9pct compared with 2020. We believe that it is mainly due to the significant increase in the proportion of third-party products and services with low gross profit margin, and there is still room for improvement in the future.
From the perspective of cash flow, the company achieved operating cash flow of about 75.87 million yuan in 2021, a significant decline compared with 2020. We believe that it is related to the continuous deepening of the company's channel reform.
3. Multi dimensional layout of emerging businesses
The company has relevant products and projects in the fields of cloud security, data security, industrial Internet security, Internet of vehicles security, terminal security, zero trust and 5g security.
Investment advice
Considering the gradual realization of the company's channel reform results and the continued investment in some new business areas, we adjusted the previous financial forecast and predicted that the company's revenue from 2022 to 2024 would be RMB 3392 / 4375 / 5469 million (the original forecast of 2022 / 2023 was RMB 3397 / 4348 million), and the net profit attributable to the parent company would be RMB 441 / 561 / 706 million (the original forecast of 2022 / 2023 was RMB 566 / 738 million), maintaining the "buy" rating
Risk tip: the transformation process of state secret algorithm is not as expected; Repeated outbreaks have slowed down the progress of the project; Intensified market competition, etc
