\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
Emerging safety track leading manufacturer, maintaining the “buy” rating
Due to the continuous increase of the company’s investment, we lowered the forecast of the company’s net profit attributable to the parent company from 2022 to 2023 to 147 million yuan (the original forecast was 159 million yuan and 221 million yuan), increased the forecast of 2024 to 253 million yuan, and EPS to 187, 247 and 3.23 yuan / share. The current share price corresponds to 69.4, 52.6 and 40.2 times of PE from 2022 to 2024. Considering the company’s card position and long-term growth potential in emerging safety tracks, we maintain the “buy” rating.
In 2021, with the rapid growth of revenue and the increase of investment, the profit is under pressure
In 2021, the company achieved an operating revenue of 1.82 billion yuan, a year-on-year increase of 37.59%. In terms of products, the operating revenue of safety basic products was 528 million yuan, a year-on-year increase of 14.51%; The revenue of security platform products was 588 million yuan, a year-on-year increase of 31.99%, and the revenue of security services was 589 million yuan, a year-on-year increase of 59.83%. The net profit attributable to the parent company was 138065 million yuan, a year-on-year decrease of 89.71%; The net profit deducted from non parent company was -795946 million yuan, a year-on-year decrease of 165.91%. The decline in net profit attributable to the parent company was mainly due to: (1) the company’s annual gross profit margin was 63.96%, down 5.01 percentage points. (2) The company increased market and R & D investment, and the sales expense rate, R & D expense rate and management expense rate were 34.93%, 29.42% and 9.11% respectively, with a year-on-year increase of 1.72, 5.86 and 1.41 percentage points. The company is currently in the key strategic investment period. In the future, with the continuous maturity of new product technology, new recruits will gradually produce benefits, and the profitability of the company is expected to recover.
Under the influence of the epidemic, Q1 income increased rapidly, and the annual net interest rate is expected to rise
In 2022q1, the company realized an operating revenue of 233 million yuan, a year-on-year increase of 26.90%; The net profit attributable to the parent company was -190 million yuan, a year-on-year decrease of 50.75%. The company’s revenue increased rapidly under the influence of the epidemic. At the same time, due to the increase of personnel, the relevant investment increased, and the company’s loss services increased year-on-year. Looking forward to the whole year, the company’s personnel growth will slow down, which is expected to improve operating efficiency, so as to promote the recovery of net interest rate.
Adhere to the strategic direction of emerging security, and achieve rapid growth in data security and Xinchuang cloud security
(1) in terms of products, the revenue scale of the company’s cloud security platform and big data security platform continues to grow. Although the revenue of new products such as data security and Xinchuang cloud security is not high, it shows a high-speed growth trend. (2) In terms of services, the revenue of security services increased rapidly, and the scale of SaaS increased steadily.
Risk warning: the company’s business development is not as expected; The risk of intensified competition in the market.
