\u3000\u30 Fawer Automotive Parts Limited Company(000030) 29 Jilin University Zhengyuan Information Technologies Co.Ltd(003029) )
Event: on April 25, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 816 million yuan, a year-on-year increase of 33.72%; The net profit attributable to the parent company was 146 million yuan, a year-on-year increase of 36.12%. In the first quarter of 2022, the revenue was 74 million yuan, a year-on-year increase of 14.41%.
The demand of many downstream industries is released, and the company’s three major network security businesses go hand in hand. The company carried out major project construction in accordance with the idea of “password application + identity and trust + Data Security + security ecology”, and achieved good results in government market, financial industry, electronic license, electronic bill, mobile payment and other business scenarios. In the military industry and military business, the company adheres to independent research and development, and has achieved breakthroughs in multiple model projects and market expansion of multiple services; In terms of Internet of things business, the company actively expanded in car cloud security, inter car security, video security and other aspects, and signed more than 10 car factories. According to the business composition, in 2021, 1) the revenue of network security products was 470 million yuan, a year-on-year increase of 34.55%; Driven by laws and regulations such as password law and ISO 2.0, the company’s products are widely used in the security and compliance construction of government, military and other industries. 2) The revenue of network security services was 178 million yuan, a year-on-year increase of 27.10%; The cooperation between the company and government departments has been continuously strengthened, and its market share in electronic invoice and other industries has been continuously improved. 3) The revenue of network security ecology was 168 million yuan, a year-on-year increase of 38.94%; The company gives full play to the advantages of independent R & D and integration ability, and closely follows the development trends of digital economy, information innovation and so on.
R & D investment continued to increase, preparing for the release of business in many downstream industries. In 2021, the company’s R & D expenses reached 101 million yuan, a year-on-year increase of 40.15%. The company has carried out key technical work in solutions, product R & D and technological innovation, and continued to carry out technical research and innovation in 5g, Internet of vehicles, cloud security, blockchain, Internet of things, industrial control security and other fields, such as electronic authentication technology, container cloud security, cloud password, cloud certificate, security blockchain reinforcement system for the next generation of intelligent connected vehicle c-v2x.
With the accelerated development of digital economy and broad market space for network security, the company has ushered in major development opportunities. In 2021, China successively promulgated and revised laws and regulations such as the network security law, the data security law, the password law, the electronic signature law and the personal information protection law, which shows that the state attaches importance to network security. The company has been deeply engaged in the industry for 20 years. With rich customer resources, sufficient industry experience and excellent technical level, it is expected to deeply benefit from the rapid development of the network security industry. In the face of the vigorous development of the information innovation industry, the company takes the terminal security login products with the characteristics of password technology as the starting point and actively enters the information innovation markets such as military, government, enterprise and military. We are optimistic that the company’s business will blossom in many fields such as military industry and military, Internet privacy and security, digital identity and car Internet in the future.
Profit forecast: maintain the 22-23 year revenue forecast of 1.083/1.444 billion yuan, and increase the 24-year revenue forecast of 1.912 billion yuan; Maintain the forecast of 183 / 261 million yuan of net profit attributable to parent company in 22-23 years, and increase the forecast of 365 million yuan of net profit attributable to parent company in 24 years; The EPS of 22-24 years was 0.98/1.40/1.96 yuan respectively, and the corresponding PE was 18x / 13X / 9x. Considering the rapid development of network security industry and the leading position of the company in subdivided fields, the “buy” rating was maintained.
Risk tip: market competition intensifies, and the development process of network security industry is less than expected.
