\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 54 Sangfor Technologies Inc(300454) )
Event:
The company issued the 2021 annual report after the closing on April 19, 2022.
Comments:
The operating revenue increased by 24.67% year-on-year, and the super integration and desktop cloud achieved rapid growth
In 2021, the company 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 3.689 billion yuan, a year-on-year increase of 10.15%; The revenue from cloud computing and it infrastructure business was 2.379 billion yuan, a year-on-year increase of 49.53%; The business income of basic network and Internet of things was 737 million yuan, a year-on-year increase of 42.15%. From the perspective of single product (service), the revenue of the whole network behavior management gateway, next-generation firewall, super integration and desktop cloud accounts for more than 10%. Among them, the super integration income increased rapidly, mainly because the company incubated many potential scenes, further optimized ecological cooperation, maintained high growth among enterprise customers, and made some breakthroughs in finance, government and public institutions; The business revenue of desktop cloud increased significantly year-on-year, mainly because the company’s core technology continued to lead, and desktop cloud grew rapidly in financial, enterprise and localization adaptation scenarios.
The growth rate of main expenses is higher than that of revenue, and the net profit attributable to the parent company is affected to a certain extent
In 2021, the company realized a net profit attributable to the parent company of RMB 273 million, a year-on-year decrease of 66.29%, mainly due to the further increase of the company’s investment, and the growth rate of various main expenses is higher than that of revenue. In terms of R & D, the company adhered to the development strategy of continuous innovation and closely followed the development trend of global information technology. The R & D cost was 2.088 billion yuan, a year-on-year increase of 38.34%. In terms of marketing, in order to continue to promote the market expansion and business landing of new businesses, the company also invested more resources in the market, with a sales cost of 2.317 billion yuan, a year-on-year increase of 27.91%. In addition, in order to attract and retain talents, the company has implemented a multi-phase equity incentive plan, resulting in a year-on-year increase in the share based payment fees recognized in 2021. The rise in hardware procurement costs caused by the tight global chip supply has also had a certain impact on the company’s gross profit margin and annual profit.
Focus on new business scenarios such as data security and cloud security, and release the next generation cloud security capability matrix
In the field of data security, the company released data intelligent classification products to help users classify and classify labels through intelligent algorithms. In addition, the product line also launched data security products. In the field of cloud security, the company continues to lay out the multi cloud security strategy, continuously strengthen the ability of application security and virtual machine security, release the next generation cloud security capability matrix of “facing the future and sustainable growth”, and launch two new cloud security products, MCSP and CWPP.
Profit forecast and investment suggestions
The company mainly focuses on the network security and cloud computing industry. Focusing on the actual needs of customers, the company increases R & D investment, constantly updates and iterates existing products and solutions, and has broad space for sustainable growth in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be RMB 8.884 billion, RMB 11.360 billion and RMB 14.332 billion, the net profit attributable to the parent company will be RMB 479 million, RMB 759 million and RMB 1.036 billion, the EPS will be RMB 1.15, 1.83 and 2.49/share, and the corresponding PE will be 86.80, 54.82 and 40.16 times. The cloud computing and network security industry where the company is located is in a period of rapid development. The company has invested a lot of R & D and other expenses, resulting in a low net profit margin. Therefore, the PS valuation method is more reasonable. In the past three years, the company’s PS has mainly operated between 6-26 times. Considering the change of the company’s profitability and the current market valuation level, the company’s target PS in 2022 has been reduced to 9 times, and the corresponding target price is 192.35 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The promotion of cloud computing business is less than expected; Hyper integration and intensified market competition; The R & D progress and promotion of new products are less than expected.
