\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 54 Sangfor Technologies Inc(300454) )
In 2021, the performance declined significantly, and the cash flow and contract liabilities were stable. In 2021, the company realized revenue of RMB 6.805 billion (+24.67%), net profit attributable to the parent company of RMB 273million (-66.29%), net profit not attributable to the parent company of RMB 131million (-80.66%). In Q4 alone, the company achieved revenue of 2.429 billion yuan (+ 9.70%), net profit attributable to parent company of 405 million yuan (- 45.23%), and net profit not attributable to parent company of 345 million yuan (- 48.52%). The company’s operating cash inflow was 8.704 billion yuan (+ 24.71%), and the net cash flow from operating activities was 991 million yuan (- 24.77%), which remained at a high level. The decline in net cash flow was mainly due to the purchase of goods, the payment of receiving labor services, and the excessive increase in employee compensation. The company’s inventory reached 350 million yuan (+ 94%), mainly due to the significant increase in the stock of raw materials and the company’s strategic stock. The company’s contractual liabilities were 1.157 billion yuan (+ 60%), still maintaining a rapid growth.
The growth of security business slows down, and cloud is the breakthrough in the future. The slowdown of security business in 2021 is mainly due to the mismatch of resource input. More resources are invested in the field of government and public institutions, and the output is lower than expected; At the same time, the landing effect of xaas strategy in 2021 has not been fully reflected. From the perspective of the company’s core security products, whether VPN, behavior management, firewall, application delivery, etc., still maintain the leading industry pattern and competitive advantage. Under the background of product upgrading in 2022, it is worth looking forward to a comprehensive transformation to the cloud. For example, the company’s firewall entered the Gartner visionary Quadrant for the first time, released a new architecture sangforos, reconstructed the underlying logic, and improved the performance several times, which is expected to boost the cost performance advantage again. In the field of cloud security, the company released multi cloud security management platform MCSP, virtual machine security CWPP, container security and other products; SASE is also gradually maturing. The company recently released version 3.0. As of March 2022, nearly 40 pop point services have been deployed worldwide, covering the most important first and second tier cities in China, with a total bandwidth of more than 150g and serving more than 200000 online users.
Super convergence and cloud desktop share increase, and managed cloud is differentiated. The company’s super integration ranks third all year round, with a share of 14.5% in 2021, up from 13.1% in 20 years. Cloud desktop ranks second all year round, rising to first in 2021, with a market share of 41.7%. In 2021, the super integrated industry increased by 41.1%, and maintained a rapid growth momentum as a whole. In the field of cloud computing, the company released a variety of products such as big data intelligent platform Abdi and database management platform DMP, and creatively put forward the hosting cloud scheme to realize the transformation from the past super integrated bearer business to the comprehensive cloud of data center. Managed cloud provides customers with a third cloud option, which can take into account the fast and convenient cloud experience of the public cloud and the exclusive resources and service response of the private cloud, which has become the main differentiation of the company’s cloud computing beyond super integration. Combined with the cloud transformation in the field of SASE security and the integration of edge architecture, it can form extensive collaboration with hosted cloud services.
Risk tip: the epidemic situation repeatedly affects the normal operation rhythm of the company, and the industry competition intensifies.
Investment advice: maintain the “buy” rating. It is estimated that the operating revenue from 2022 to 2024 will be RMB 88.71/114.92/14.530 billion, with growth rates of 30% / 30% / 26% respectively, and the net profit attributable to the parent company will be RMB 572 / 9.38/1.212 billion, corresponding to 72 / 44 / 34 times of the current PE, maintaining the “buy” rating.
