\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 360 360 Security Technology Inc(601360) )
The event company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a revenue of 10.886 billion yuan, a year-on-year decrease of 6.28%; The net profit attributable to the parent company was 902 million yuan, a year-on-year decrease of 69.02%; Net profit deducted from non parent company was 608 million yuan, a year-on-year decrease of 76.11%. In the first quarter of 2022, the revenue was 2.526 billion yuan, a year-on-year decrease of 1.03%; The net profit attributable to the parent company was 222 million yuan, a year-on-year decrease of 17.98%; Net profit deducted from non parent company was 190 million yuan, a year-on-year decrease of 17.16%.
Increase government and enterprise security investment, and the performance is under pressure in the short term. In 2021, the company achieved a revenue of 10.886 billion yuan, a year-on-year decrease of 6.28%, lower than expected; The net profit attributable to the parent company was 902 million yuan, a year-on-year decrease of 69.02%; Net profit deducted from non parent company was 608 million yuan, a year-on-year decrease of 76.11%. In the first quarter of 2022, the revenue reached 2.526 billion yuan, a year-on-year decrease of 1.02%; The net profit attributable to the parent company was 222 million yuan, a year-on-year decrease of 17.90%; Net profit deducted from non parent company was 190 million yuan, a year-on-year decrease of 17.32%. The decline in revenue was mainly due to the decline in Internet advertising revenue; The decrease in net profit attributable to the parent company and net profit deducted from non attributable to the parent company was mainly due to the company's increased investment in government and enterprise safety business and the increase in sales and R & D expenses. During the reporting period, the company made great efforts to improve the sales capacity, the number of sales personnel increased by 31.43% year-on-year, and the sales expenses increased by 34.54% year-on-year; Optimize the overall structure of R & D personnel, the number of personnel decreased by 1.57% year-on-year, and continue to increase investment in security data and capacity-building, with R & D expenses increasing by 8.97% year-on-year.
The digital security transformation has achieved initial results, and the Internet business is basically stable. In 2021, the company's safety and other businesses achieved a revenue of 1.381 billion yuan, a year-on-year increase of 70.91% and a gross profit margin of 67.26%. On the premise of maintaining a high gross profit margin, the company continued to maintain a high growth momentum; Revenue accounted for 12.72%, an increase of 82.76% over the previous year, and the revenue structure continued to be optimized. The security business adopts the mode of "holding high and fighting high", and successfully builds a security product matrix with "security brain" as the core, covering security infrastructure components, information innovation products, security management, terminal security, traffic security, cloud security, Internet of vehicles security, industrial Internet security, SaaS services, mobile security and other fields, so as to provide a solid foundation for subsequent business development. In recent years, the overall growth rate of the Internet advertising industry has slowed down, and the PC side has gradually entered a stable state after experiencing a decline in previous years. Thanks to the high market penetration and active users of products and services, the company has achieved better business results than the industry.
Government and enterprise businesses expanded rapidly, creating new income space. In 2021, the company completed the development of five important cities and completed the full coverage of 15 core customers. The city orders expanded with 22 annual salary include four provincial capitals, one city specifically listed in the plan and several large and medium-sized cities. The number of regional customers and newly signed amount of the company have increased significantly, and nearly 2000 new contracts have been signed with customers. The cumulative customers cover more than 90% of central ministries and commissions, 80% of central enterprises and 95% of large financial institutions, and have carried out network security cooperation with millions of small and medium-sized enterprises. In terms of projects, it has successfully won the bid for the security system project of industrial coordination and smart city construction for the coordinated development of Beijing, Tianjin and Hebei, the offline diagnosis project of "5g + industrial Internet" in Suzhou Industrial Park, and the project of "major infrastructure cluster of national network security industrial base" in Zhengzhou.
Investment suggestion: we predict that the company's EPS will be 0.16/0.20/0.26 from 2022 to 2024, and the corresponding P / E ratio will be 51 / 39 / 31 respectively. The company adheres to the "Internet + security" two wheel drive, "basic disk" superimposed with "high growth", maintains its rating and makes prudent recommendations.
Risk warning: risk of technological progress; Core brain drain risk; The risk that the development of new business is not as expected, the business expansion is slow, and the business philosophy and business model do not adapt in a short time; Industry competition intensifies risks.
