\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
The event company released its annual report for 2021, and achieved a revenue of 1.82 billion yuan during the reporting period, with 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%; Net profit deducted from non parent company was -80 million yuan, a year-on-year decrease of 165.91%.
Strong revenue growth and high costs put pressure on profits. The company released its annual report for 2021, and achieved a revenue of 1.82 billion yuan during the reporting period, with 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%; The net profit deducted from non parent company was -80 million yuan, a year-on-year decrease of 165.91%, with a strong overall growth. The decline in net profit attributable to the parent company is due to the company’s increasing investment in technology R & D, market development and management optimization and the implementation of equity incentive in order to develop a new direction of strategy. During the reporting period, the company’s R & D expenses increased by 71.82%, management expenses increased by 62.79% and sales expenses increased by 44.72% year-on-year. At the same time, due to the rapid growth of operating revenue and the rise of labor cost, the operating cost increased by 59.79% year-on-year; The company’s share based payment expenses increased significantly compared with the same period of last year, and the amount of share based payment during the reporting period was 96 million yuan.
The core business segment grew rapidly, and the emerging safety track continued to expand. In terms of products, the company’s network information security basic products achieved an operating revenue of 528 million yuan, a year-on-year increase of 14.51%; Network information security platform products achieved an operating revenue of 588 million yuan, with a year-on-year increase of 31.99%. Among them, products related to new strategic directions launched by the company, such as data security related products, achieved ultra-high growth; Network information security services achieved an operating revenue of 589 million yuan, a year-on-year increase of 59.83%. Guided by the needs of customers and the market, the company strengthens the investment in relevant products and platforms in new strategic directions such as data security, information creation security, terminal security and intelligent security gateway. It has made rapid layout in the field of information creation security. During the reporting period, it launched a multi cloud, multi-core, integrated and diversified management information creation security operation platform, which has been implemented at the provincial and municipal levels such as Shanxi, Guangxi and Hangzhou; Situational awareness products are fully compatible with Kunpeng, Haiguang and Feiteng specifications, and continue to implement projects in the public security, online information and financial industries Dbappsecurity Co.Ltd(688023) is still in the early stage of investment in several new strategic directions, and the layout has achieved initial results. With the continuous maturity of new product technology and the gradual formation of scale effect, it will continue to create new profit growth points for the company and lay the foundation for the continuous high growth of future performance.
The policy dividend was further released, and the “digital government” promoted the rapid development of the network security industry. In 2021, laws and regulations such as the data security law, the personal information protection law and the regulations on the security protection of key information infrastructure were successively issued, which will focus on the security protection of the whole process and life cycle of data, and inject strong impetus into the sustained and high-speed development of the network security segment market. According to IDC, China’s network security related expenditure is expected to reach US $10.26 billion in 2021. It is estimated that by 2025, China’s network security expenditure will reach US $21.46 billion. In the five years from 2021 to 2025, China’s network security related expenditure will grow at a compound annual growth rate of 20.5%, ranking first in the world. Consistent with the development trend of global security industry structure, China’s network information security market continues to transform to service. IDC predicts that in the five years from 2021 to 2025, the compound annual growth rate of China’s network security service market will reach 20.8%. By 2025, its market scale is expected to exceed US $6.11 billion. Among them, security consulting service will remain the largest service sub market in the next five years, and the scale of consulting service market will reach US $2.46 billion by 2025. At the same time, in the context of the continuous outbreak of security operation demand, the development momentum of China’s custody security service market is strong, and the five-year compound growth rate is expected to reach 31.9%.
Investment suggestion we predict that the company’s EPS from 2022 to 2024 will be 1.81/2.97/3.51, and the corresponding P / E ratio will be 72 / 44 / 37 respectively. At present, the network security industry has ushered in a new outlet. Based on the high growth of business income in the core sector, the company has laid a new security track, is optimistic about the future development of the company and maintains the “recommended” rating.
The risk indicates the risk of intensified market competition; The company’s new industry development strategy and marketing services can not meet the business development risks brought by customers’ needs; The risk that the implementation of industrial policies is less than expected.
