\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 54 Sangfor Technologies Inc(300454) )
Revenue growth was in line with expectations, and the overall revenue driven by cloud business maintained a high growth rate Sangfor Technologies Inc(300454) 2021 achieved an operating revenue of 6.805 billion yuan, a year-on-year increase of 24.67%. Among them, the revenue of network security business was about 3.689 billion yuan, with a year-on-year increase of 10.15%, and the proportion in the company's overall revenue decreased from 61.35% in the same period in 2020 to 54.20% in 2021; The revenue from cloud computing and it infrastructure business was about 2.379 billion yuan, a year-on-year increase of 49.53%, and the proportion of revenue increased from 29.15% to 34.97%; The revenue of basic network and Internet of things business was 737 million yuan, with a year-on-year increase of 42.15%, and the proportion of revenue increased from 9.50% to 10.83%.
Gross profit margin and net profit margin are still under pressure, and cash flow remains stable. Due to the increasing proportion of cloud business revenue, the increase of hardware procurement cost caused by lack of core has a certain impact on the company's annual profit, and the gross profit margin has decreased. At the same time, the R & D expenses have increased by 38.34% year-on-year, and the proportion in revenue has increased to 30.68%. The multi-period equity incentive plan has promoted the upward use of management fees, resulting in the net profit attributable to the parent decreased from 809 million yuan in 2020 to 273 million yuan, a year-on-year decrease of 66.29%, and the net profit not attributable to the parent decreased to 131 million yuan, The year-on-year decrease was 80.66%, the performance was under pressure, and the effect of cloud priority strategy was gradually presented. The company's operating cash inflow was RMB 8.704 billion, with a year-on-year increase of 24.71%, which was the same as the growth rate of revenue; The net operating cash flow was 991 million yuan, a year-on-year decrease of 24.77%.
Network security, cloud computing and it infrastructure business maintained a high growth rate, and product competitiveness and channel advantages continued to be verified. 1) The pressure on the network security business dragged down the overall revenue growth. The company disclosed the reasons for the pressure on the revenue growth, which was mainly due to the inaccurate market insight into the needs of industry customers, which led the company to invest more resources in some industry customer groups such as the government and public institutions according to inertia. However, due to multiple factors, the input and output of this part did not match, resulting in the weak growth of the company's largest network security business; 2) In 2021, R & D expenses increased by 38.34% year-on-year, and the proportion of R & D investment in revenue rose to 30.68%, an increase of 3 percentage points year-on-year. At the same time, the scale of sales personnel has further increased, but the per capita sales efficiency has not been significantly improved. In addition, in order to continue to promote the market expansion and business landing of new businesses, the sales expenses have increased by 27.91% year-on-year, and the growth rate is also higher than the growth rate of revenue, so the overall profitability is under pressure; 3) Cloud business revenue accounts for nearly 35%, and the market position of cloud computing products and solutions has been improved. According to IDC data, the company's desktop cloud terminal (formerly VDI) products maintained the second market share of cloud terminals in China for four consecutive years from 2017 to 2020, rising to the first in 2021; Cloud desktop software VCC (desktop virtualization, application virtualization) products maintained the top three market share in China from 2017 to the first half of 2021; From 2017 to 2021, super integrated HCI products ranked among the top three in China's market share for five consecutive years.
The growth rate of network security business is under pressure. We adhere to the strategic goal of xaas (all services) priority and look forward to the effect of cloud layout. 1) The company's network security product line is complete, and the market share of VPN and Internet behavior management are in the leading position in the industry. According to the data of Sangfor Technologies Inc(300454) prospectus, the channel revenue accounts for about 97%. Considering that the contract liabilities increased by 60.47% to RMB 1.157 billion at the end of 2021, the revenue is still expected to maintain a high growth rate in 2022; 2) Sangfor Technologies Inc(300454) small and medium-sized b customer group has higher acceptance of public cloud in core business and data, and MSS, SASE and other cloud businesses are in the early stage. At the industrial level, from the development context of cloud security services at home and abroad and the development stages of companies at IAAs and SaaS levels, we believe that China's cloud security market lags behind overseas for about 5-7 years. At the corporate level, opportunities for Chinese security manufacturers are in the private cloud and hybrid cloud markets. Due to the differences in cloud service providers' genes and ecological construction preferences, China's top customers prefer private cloud and other factors, China's third-party security manufacturers have great development space in private cloud and multi cloud environment. Compared with other network security manufacturers, Sangfor Technologies Inc(300454) has the advantages of customer base, R & D and channel; 3) Since 2021, the company has made clear the strategic goal of giving priority to xaas (all services), and steadily promoted xaas business including managed cloud, MSS (managed security operation service) and SASE (secure access service edge). The goal is to promote the company's business to gradually realize cloud, online and service
Maintain the "buy" rating. Considering that the downstream demand is disturbed by the epidemic, and the company increases R & D and market investment, we expect the company's operating revenue to be RMB 8.588106.32/12.992 billion in 2022 / 23 / 24, and the net profit attributable to the parent company is expected to be RMB 359517/950 million, maintaining the "buy" rating.
Risk warning: industry competition intensifies the risk; The policy strength is less than the expected risk; New areas are less risky than expected.
