\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
Event overview
The company recently released its 2021 annual report, which realized an operating revenue of 525 million yuan, a year-on-year increase of 26.02%; The net profit attributable to the parent company was 154 million yuan, a year-on-year increase of 43.63%; The net profit deducted from non parent company was 143 million yuan, with a year-on-year increase of 40.54%. The company achieved rapid growth in revenue and profit in 2021. We believe that the password industry in which the company is located is in the ascendant and has strong demand, which is expected to help the company continue to maintain rapid growth.
The core track grew rapidly and the business quality continued to improve
From the perspective of revenue splitting, the financial industry with the company's traditional advantages achieved a revenue of 299 million yuan in 2021, with a year-on-year increase of 28.33%, and achieved rapid growth. The financial industry accounts for 57% of the company's total revenue. The sustained and stable rapid growth is conducive to the improvement of the company's overall business.
In terms of gross profit margin, the company's comprehensive gross profit margin in 2021 was 72.12%, an increase of 1.37pct year-on-year. We believe that it is mainly due to the improvement of the company's degree of productization and the gradual decline of labor costs. According to the disclosure of the annual report, the company's labor and technical service costs increased by only 1.81% year-on-year in 2021, which is far lower than the growth rate of the revenue side, which has made a great contribution to the improvement of the comprehensive gross profit margin. We believe that this trend is expected to continue, which reflects the improvement of the company's operation quality in one aspect.
In terms of expense ratio, the company's sales expense ratio in 2021 was 18.21%, a year-on-year decrease of 0.29pct; The rate of administrative expenses was 7.89%, a year-on-year decrease of 0.02pct; The R & D expense ratio was 19.15%, with a year-on-year decrease of 0.45pct. The total of the three fees decreased by 0.76pct. We believe that the company's cost side is well controlled. In particular, the epidemic has prompted more enterprises to accept remote or online operation and maintenance and delivery methods, which has prompted the company to perform better in terms of cost rate.
Based on the password needs of the financial industry, expand products and customers horizontally and vertically
At present, the financial industry still has a strong demand for commercial passwords. On the bank side, according to the disclosure of the company's annual report, the company will continue to consolidate its dominant position in the banking industry in 2021, and continue to follow up the RMB cross-border payment system (CIPS), cross-border payment management system, interest rate reporting system, phase II of electronic letter of credit and the safe application of digital currency. We believe that the capital expenditure of banks in informatization is growing continuously, and the development of emerging businesses such as digital RMB will also accelerate the investment in informatization of the banking industry. The security investment will also continue to grow with the information investment, and the information security demand based on commercial passwords is expected to continue for a long time. On the other hand, the promotion of financial information innovation also brings new opportunities to the commercial password industry. According to the disclosure of the annual report, the company is actively carrying out the innovation and application of information technology. At present, the company has released a variety of Dingan series of information innovation products based on domestic chips such as Zhaoxin, Haiguang and Feiteng, which have been fully adapted to domestic operating systems such as Galaxy Kirin and Tongxin, and support basic software environments such as Beijing Tongtech Co.Ltd(300379) , golden disc, Damon, Shenzhou GM and Nanjing University GM. many of these products have passed the financial information innovation ecological laboratory Huawei's Ecological Innovation Center and other ecological partners have been tested and certified to jointly build a safe, reliable and win-win domestic ecological chain with domestic manufacturers. From the perspective of non banking industry, in 2021, the company will increase the layout of products and solutions in the pan financial fields such as securities, futures, funds and insurance to provide security for its national secret transformation projects. We believe that the demand of the securities and futures industry for the transformation of state secrets is expected to continue to release, resulting in an increase in the company's performance.
Take finance as the core and expand government and enterprise customers horizontally. With years of deep cultivation in the financial field, the company now has a full range of products such as identity security, communication security, data security, mobile security, cloud security and security platform, which is expected to expand customers horizontally from the financial industry. In 2021, the company realized a revenue of 93 million yuan from government agencies, with a year-on-year increase of 37.84%, with a rapid growth rate. According to the disclosure of the annual report, in the government field, the company makes use of the existing advantageous industry solutions to deepen the coverage of finance, human resources and social security, medical insurance, tobacco, transportation and other industries, add new courts, public security and other industries, and improve the market share.
Based on business density, expand the network security product line vertically. From the perspective of product dimension, in addition to focusing on commercial password related products, the company is also vertically expanding other network security product lines. From the perspective of the core technology obtained by the company, the company is also laying out network security products such as zero trust system, load balancing and situational awareness, which is expected to further broaden the product line.
Investment advice
Beijing Infosec Technologies Co.Ltd(688201) as a leading provider of information security products and solutions in China, based on password technology, it is expected to achieve sustained and rapid growth by expanding horizontally from finance to government and enterprise industries and vertically from passwords to other network security products. We expect the company to achieve an operating revenue of 666 / 836 / 1042 million yuan in 2022 / 23 / 24, with a year-on-year increase of 26.9% / 25.5% / 24.7%. The net profit attributable to the parent company was 202 / 263 / 332 million yuan, with a year-on-year increase of 31.1% / 30.1% / 26.4%. For the first coverage, the investment rating of Buy-A is given, and the six-month target price is 65.10 yuan, corresponding to 30 times the dynamic P / E ratio in 2022.
Risk warning: the password demand of downstream industry is less than expected; The epidemic affects product promotion and delivery.
