\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
Matters:
The company issued the annual report of 2021 and the first quarterly report of 2022. The annual report shows that in 2021, the company achieved an operating revenue of 1.82 billion yuan, a year-on-year increase of 37.59%; The net profit attributable to the parent company was 14 million yuan, a year-on-year decrease of 89.71%; It is not planned to carry out cash dividends, bonus shares or conversion of capital reserve into share capital. In the first quarter of 2022, the company achieved an operating revenue of 233 million yuan, a year-on-year increase of 26.90%; The net loss was 190 million yuan, an increase over the same period last year (126 million yuan in 2021q1).
Ping An View:
The company's revenue grew rapidly, and the growth rate of safety service revenue was close to 60%. In 2021, although the whole network security industry is facing great growth pressure, the company's continuous investment in market development is showing its effect. At the same time, favorable policies have also brought more business opportunities to the company. Among them, the introduction of the data security law has brought the demand for the security protection of the whole process of data. The company has also developed more than 10 series of data security products represented by aiguard data security management platform, and the technical capability and scenario applicability of data safety island products are also improving. In 2022, the company's revenue increased by 37.59%, including 589 million yuan of revenue from network security services, a year-on-year increase of 59.83%; Platform products continued to maintain rapid growth, with a revenue of 588 million yuan in 2021, a year-on-year increase of 31.99%; The growth of basic products is relatively slow, with a growth rate of only 14.51%. From the perspective of product structure, the proportion of the company's platform and service business income is rising, and the income exceeds the basic business for the first time. In terms of industry customers, in addition to traditional advantageous industries, the company's market share in finance, operators, medical treatment, education, enterprises and other customers shows a further upward trend.
The gross profit margin fell and the proportion of period expenses rose, and the profit scale of the company decreased significantly. In 2021, the company's gross profit margin was 63.96%, 5.01 percentage points lower than the same period of the previous year. Among them, the gross profit margins of the three major business lines decreased compared with the previous year, and the rise of labor costs was the main reason for the decline of the company's gross profit margin. The proportion of expenses during the period was also higher than that of the previous year. In 2021, the company's period expense rate reached 73.18%, 10.37 percentage points higher than the same period of last year. We can see that all expense rates of the company have increased compared with the previous year, especially the R & D expense rate has increased significantly by 5.86 percentage points to 29.42%. In 2021, the company made more investment in products and platforms related to new strategic directions such as data security, information creation security, terminal security and intelligent security gateway. The increase in the number of personnel and employee compensation and the amortization of equity incentive expenses all put some pressure on the cost control of the company. Under the influence of the above factors, the net profit attributable to the parent company was only 14 million yuan, a sharp decrease over the same period of last year.
The information security industry is facing changes, and the company's performance is expected to improve. With the popularity of new application scenarios, including cloud computing, big data, Internet of things and mobile terminals, and the gradual improvement of enterprise informatization, there have been three major changes in the field of network information security: from traditional PC, server and network edge to cloud computing, big data, pan terminal and new boundary; The idea of protection has changed from "risk discovery, defect detection and leakage correction" to "gateway forward and system planning"; The core technology is upgraded from traditional fence protection to the use of big data and other technologies to detect and respond to security threats. At present, the company has products and solutions related to emerging security fields such as cloud security, big data security, Internet of things security, industrial Internet Security and smart city security. With profound core technology accumulation and deep understanding of the government enterprise market, the company will make great breakthroughs in emerging fields. Especially in the field of cloud security and data security, the company's deep excavation of stock market and the expansion of new markets are expected to achieve results. The revenue is expected to continue to maintain rapid growth and the performance is expected to improve.
Investment suggestion: Although the performance of the company in 2021 has declined significantly compared with the previous year, we believe that the safety service and platform safety track where the company is located have very good potential. The company has strong advantages in data security, cloud security and security services, and will benefit from the rapid transformation of the security industry in the future. Combined with the company's annual report and the latest quarterly operating results, we lowered the profit forecast. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 136 million yuan (the previous value is 237 million yuan), 150 million yuan (the previous value is 308 million yuan) and 174 million yuan respectively, and EPS will be 173 yuan, 191 yuan and 222 yuan respectively. The PE corresponding to the share price on April 22 will be 74.8 times, 68.1 times and 58.5 times respectively. Maintain a "recommended" rating.
Risk tips: 1) risk of continuous decline in gross profit margin. The possibility of security manufacturers from different backgrounds competing on the same platform increases, such as the Internet and traditional ICT enterprises. The competition in technology, brand, talent and capital intensifies, and there is a risk of decline in the overall industry and the company's gross profit margin. 2) New market development was less than expected. The company is increasing investment in the construction of marketing network, establishing multi-level sales channels and constantly expanding small and medium-sized enterprise customers. However, if the company's new industry development strategy and marketing services can not meet the needs of customers, the company will face the risk that the development of new markets is not as expected. 3) Policy risk. The investment direction of the company is closely related to the construction of information innovation and smart city. The policy orientation in these fields is strong, but if the progress and strength of policy support may be adjusted, the company's performance may also be negatively affected.
