\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
The innovative network security leader with rapid development maintains the “buy” rating
We expect that the company’s R & D and marketing efficiency will be improved year by year. The company’s net profit attributable to the parent company from 2022 to 2023 is predicted to be 108 million yuan and 360 million yuan, and the new forecast for 2024 is 478 million yuan, corresponding to EPS of 0.16, 0.53 and 0.70 yuan / share. The current share price corresponds to PE of 288.0, 86.6 and 65.2 times, maintaining the “buy” rating.
In 2021, the revenue increased rapidly and the operating efficiency improved significantly
In 2021, the company achieved an operating revenue of 5.809 billion yuan, a year-on-year increase of 39.60%, and the net profit attributable to the parent company was -555 million yuan, compared with -334 million yuan in the same period in 2020. In 2021, the gross profit margin of the company’s sales was 60.01%, with a year-on-year increase of 0.44 percentage points. In particular, thanks to the gradual performance of the company’s R & D platform, the gross profit margin of safety products was 77.02%, with a year-on-year increase of 4.78 percentage points. From the expense side, after deducting the share based payment expenses, the company’s R & D expense rate, sales expense rate and management expense rate decreased by 1.38%, 2.90% and 2.21 percentage points respectively. Excluding the impact of share based payment fees and social security fee relief in 2020 due to the epidemic, the company’s net profit loss narrowed significantly year-on-year, with a loss reduction of more than 40%.
In 2022q1, the revenue continued to grow at a high rate, and the growth rate of orders was bright
In 2022q1, the company achieved an operating revenue of 659 million yuan, a year-on-year increase of 44.52%, and a net profit attributable to the parent company of -481 million yuan, with a loss reduction rate of 10.41%, mainly due to the reduction of the expense rate during the period. The R & D expenses, sales expenses and management expenses increased by 18.38%, 5.37% and 26.97% respectively year-on-year, significantly lower than the revenue growth. In addition, according to the operation announcement previously issued by the company, the new orders from January to March 2022 exceeded 900 million yuan, with a year-on-year increase of more than 65%, laying a good foundation for subsequent growth.
Implement the ideas of “LEGO” and “Legion”, and it is expected that the R & D efficiency will be greatly improved throughout the year
On the one hand, the company continued to promote the R & D platform strategy, and comprehensively improved the standardization, modularization, componentization and performance of products. On the other hand, in 2022, the company established a corps organization in key fields. According to the company’s announcement, the goal of the Corps organization in 2022 will achieve more than twice the gross profit and contribute about one-third of the company’s total financial gross profit. With the mass production of R & D platform and the organizational adjustment of legionnaization, the R & D efficiency of the company has been greatly improved. It is expected that the proportion of R & D expenses in revenue will be greatly reduced in the whole year, which is expected to promote the rapid improvement of profitability.
Risk warning: market competition intensifies the risk; Continuous loss risk; Brain drain risk.
