\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company’s revenue was 5.809 billion yuan, a year-on-year increase of 39.64%; The net profit attributable to the parent company was – 550 million yuan, and the loss increased by 65.91% year-on-year; Q1 revenue in 2022 was 659 million yuan, with a year-on-year increase of 44.52%; The net profit attributable to the parent company was -481 million yuan, and the loss narrowed by 10.41% year-on-year
Revenue continued to grow at a high rate and gross profit margin increased steadily. In 2021, the scale of revenue exceeded 5.8 billion, achieving a high growth rate of 39.60%. The growth rate continued to lead the industry, and the leading position of the industry was stable. In the past five years (20172021), the compound growth rate was 63.08%, and the per capita income increased by 12.70% year-on-year. In 2021, the gross profit margin of the company increased to 60.01%, with a year-on-year increase of 0.44pct; The gross profit margin of safety products was 77.02%, with a year-on-year increase of 4.78pct.
The high data security boom superimposes the driving effect of key industries to build a stable base of revenue. In 2021, the revenue of data security and privacy protection products exceeded 1.1 billion yuan, with a year-on-year increase of more than 50%. With five sets of data security innovative products, the company realized the landing of personal privacy protection and data security situational awareness from multiple dimensions, and built a full scene data security closed-loop system of “one center and four guards”; The security needs of customers in Guanji industry show the new characteristics of covering new scenes such as “cloud, large and industrial” and products of “systematization, actual combat and collaborative linkage”. By industry, in 2021, the revenue of government industry was nearly 1.7 billion, accounting for more than 29% of the main revenue, with a year-on-year increase of more than 42%; The revenue of the public security, procuratorial and judicial department exceeded 900 million yuan, accounting for more than 16% of the main revenue, with a year-on-year increase of more than 45%; The revenue of enterprise customers exceeded 3.1 billion, accounting for nearly 54% of the main revenue, with a year-on-year increase of nearly 36%; Among the basic industries whose revenue accounts for more than 5% of the main business revenue, the growth rate of the operator industry exceeds 66%; The growth rate of medical and health care exceeded 60%; The growth rate of energy industry exceeds 54%; The growth rate of the financial industry is nearly 30%; Meanwhile, from January to March 2022, new orders exceeded 900 million yuan, with a year-on-year increase of more than 65%, laying a good foundation for subsequent growth.
The R & D platform is beginning to emerge, further highlighting the advantages of new track products. In 2021, the revenue from new track products accounted for more than 70% of the security revenue, of which the revenue from data security and privacy protection increased by 50% year-on-year. The company firmly promotes the “R & D platform” strategy, and the R & D investment that has lasted for many years has gradually achieved benefits. The quality and performance of “standardized” core products that meet the personalized needs of customers are comprehensively improved, the revenue scale and gross profit margin of core products are significantly improved, and the market share and competitiveness of many new track products continue to lead the whole industry.
Investment suggestion: as the leader in the network security industry who has maintained high growth for a long time, the company will widely benefit from the dividend under the digital wave. It is estimated that the EPS from 2022 to 2024 will be: 0.12 yuan, 0.45 yuan and 0.73 yuan; The PE valuation corresponding to the current stock price is 378x, 99x and 61x, maintaining the “recommended” rating.
Risk tip: the policy implementation is less than expected, the company’s business progress is less than expected, and the market competition is intensified.
