\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
Event:
The company released its annual report for 2021. In 2021, the company realized a total operating revenue of 1.82 billion yuan and a net profit attributable to the parent of 13.81 million yuan, of which the net profit attributable to the parent after deduction was – 79.59 million yuan, a year-on-year decrease of 165.91%. At the same time, the company released the first quarterly report of 2022. In the first quarter of 2022, the company realized an operating revenue of 233 million yuan and a net loss attributable to the parent of 190 million yuan, including 196 million yuan after deduction.
Comments:
1. The performance in 21 years was in line with the expectation, and the income growth rate in 22q1 fell due to the regional epidemic. The company’s performance in 2021 was in line with the expectation as a whole, in which the income and net profit attributable to the parent were close to the median value of the forecast. The company’s revenue growth in the first quarter of 2022 decreased compared with previous years. We believe that the main reason is that the repeated epidemic in the first quarter led to the delay of the company’s revenue confirmation and the delivery progress of new orders. At the same time, the increase of personnel in 21 years led to the increase of expenses and the expansion of losses in the first quarter, but the impact on the annual profit level was limited.
2. The platform business and security services maintained a high growth trend, and the adjustment of revenue structure brought about the overall business optimization. The company’s network security basic products, security platforms and security services achieved revenue of 528 million yuan, 588 million yuan and 589 million yuan respectively, with a year-on-year increase of 14.51%, 31.99% and 59.83%. The proportion of safety services has increased year by year, which is conducive to the improvement of customer stickiness and overall income sustainability. There is still room for long-term gross profit margin to rise.
3. The cost side investment was significantly increased, and the strategic importance of the R & D team was prominent
In 2021, the company’s sales and R & D expenses increased by 44.72% and 71.82% respectively year-on-year. We believe that the increased investment on the expense side is one of the main reasons for the sharp decline of the company’s profit in 2021. Especially in the field of R & D, the company’s strong investment reflects the strategic importance of the R & D team to the company.
4. Strengthen the ecological layout and the landing of new business is worth looking forward to
The company will enhance ecological investment and strategic ecological cooperation in 2021 and the first quarter of 2022. We are optimistic that relevant cooperative products will be released and launched in 2022, contributing multiple driving forces to the company’s revenue growth.
Investment advice
According to the actual performance of the company in 2021, we adjusted the previous profit forecast. It is estimated that the revenue of the company from 2022 to 2024 will be RMB 2.51034674755 billion (the original forecast of RMB 2.5483556 billion in 2022 / 2023), and the net profit attributable to the parent company will be RMB 119 / 4.67/770 million (the original forecast of RMB 145 / 491 million in 2022 / 2023). Considering that the new business layout of the company is energy storage for long-term growth, the “buy” rating is maintained.
Risk tips: 1) the growth rate of cloud security and data security business is lower than expected; 2) Intensified market competition; 3) The epidemic repeatedly affects order delivery and revenue recognition; 4) Core technology brain drain, etc
