\u3000\u3 China Vanke Co.Ltd(000002) 268 Westone Information Industry Inc(002268) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 2.789 billion yuan, a year-on-year increase of 17%, and the net profit attributable to the parent company was 238 million yuan, a year-on-year increase of 47%. In 2022, Q1 company achieved an operating revenue of 631 million yuan, a year-on-year increase of 123%; The net profit attributable to the parent company lost 38 million yuan, a year-on-year increase of 49.5%, exceeding market expectations.
Key investment points
Focusing on data security, 2022q1 revenue exceeded market expectations: the company focused on data security business in 2021, focusing on strengthening data security technology research and product development such as data classification protection, security supervision and governance, security sharing and utilization with password as the core. In terms of business, in 2021, the company's security chip and module business revenue was 503 million yuan, with a year-on-year increase of 33.65% and a gross profit margin of 56.16% (year-on-year -0.78pct); The revenue of safety machine and system business was 727 million yuan, with a year-on-year increase of 25.17% and a gross profit margin of 65.94% (year-on-year + 10.88 PCT); The revenue of security and integration business was 1.558 billion yuan, with a year-on-year increase of 9.27% and a gross profit margin of 18.96% (year-on-year -2.87pct). In 2021, the overall gross profit margin was 37.92%, with a year-on-year increase of 2.44pct; The net interest rate attributable to the parent company was 8.54%, with a year-on-year increase of 1.77pct, and the operation quality was significantly improved. The significant year-on-year increase in revenue in 2022q1 is mainly due to the company's acceleration of project implementation progress, completion of acceptance of multiple Xinchuang and shangmi projects and delivery of safety products.
Five major businesses are fully developed, and multi industry applications continue to make breakthroughs: in 2021, the company will vigorously develop five major businesses: data security, basic security, network security, security applications and security services, so as to achieve breakthroughs in multiple industry fields. The company and Zhejiang Century Huatong Group Co.Ltd(002602) launched the first data security Benchmarking Project under the Internet game scene in the field of game data; The Internet of vehicles business secret application demonstration project was selected into the pilot list of the Ministry of industry and information technology; Realize the wide application of low-power security chip in IOT terminals; Orange news mobile security application platform covers key industries such as e-government, public security, finance and energy; China's first set of new energy centralized control commercial password endogenous security system has been successfully connected to the network, and continued to break through new industry fields.
Around the new strategic positioning, the future of high-quality transformation can be expected: the company puts forward the new strategic positioning of "password centered data intelligent security service provider", with the goal of "building the first brand in the field of data security". 2022 will become a key year for high-quality development and transformation. In the future, on the one hand, the company will further consolidate the advantageous market of the party and government, comprehensively carry out the information innovation and upgrading of products, and quickly expand the application needs of commercial password market in finance, energy, transportation, telecommunications, Internet and other industries; On the other hand, deeply tap the policy compliance and endogenous transformation needs of Internet enterprises for data security and security services, and create a new growth level of high-quality development of the company guided by market demand.
Profit forecast and investment rating: we maintain the company's EPS forecast of 0.38/0.49 yuan from 2022 to 2023 and 0.64 yuan in 2024. The current market value corresponds to 94 / 72 / 55 times of PE from 2022 to 2024. As China's national team in the field of information security, the company has deeply cultivated password technology, and will fully benefit from the implementation of relevant policies such as personal information protection in Internet and other industries. It is expected to continue to obtain the resource docking and strong support of the group in the future. Maintain the "buy" rating.
Risk tip: industry competition intensifies, business secret promotion fails to meet expectations, and policy progress is less than expected.
