\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) Shenzhen Guohua Network Security Technology Co.Ltd(000004) 00)
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 11.991 billion yuan, a year-on-year increase of 7.14%, and a net profit attributable to the parent company of 724 million yuan, a year-on-year increase of 1.17%; It is proposed to distribute a cash dividend of 1.00 yuan (including tax) for every 10 shares.
Comments:
The intelligent power transformation and distribution business continues to make efforts, and the technical support for the “double carbon” target is expected to be further improved. In 2021, the business of intelligent power transformation and distribution system realized an operating revenue of 4.406 billion yuan, a year-on-year increase of 15.08%, and the gross profit margin increased by 0.39 PCT to 25.92% year-on-year; The smart meter business achieved an operating revenue of 2.534 billion yuan, a year-on-year increase of 5.69%, and the gross profit margin increased by 0.21 PCT to 17.78% year-on-year; The intelligent medium and low voltage power supply business realized an operating revenue of 2.256 billion yuan, a year-on-year increase of 20.33%. Innovation driven and “strong R & D” achievements are outstanding. The first set of applications such as self-developed distributed condenser protection and large pumping and storage unit protection have been realized, providing an overall solution for source network load storage for China’s first 100% renewable energy demonstration project. In 2022, the company will continue to give full play to the dual drive of technology and market, and is expected to form a competitive advantage in the subdivided fields such as prefabricated cabin, smart meter and magnetic control switch. The upgrading and transformation of distribution network may bring new opportunities for the development of distribution automation such as self-healing of distribution network.
The profit margin of DC transmission business has increased significantly, and the construction of new energy base will drive the growth of business scale. In 2021, the DC transmission business realized an operating revenue of 986 million yuan, and the gross profit margin increased by 18.26 PCT to 46.23% year-on-year. The company has accumulated rich experience in DC transmission technology and engineering practice. The offshore wind power flexible DC converter valve and complete set of DC energy consumption devices have been successfully put into operation in Rudong project, and the first set of digital converter station, new generation intelligent gateway and concentrator has been applied. In 2022, the construction of UHV projects in the new energy base will be accelerated, and offshore wind power will drive the demand for flexible DC transmission. The company is expected to achieve rapid business growth by virtue of the first mover advantage of technology.
Actively explore the electric vehicle charging and replacement market. In 2021, the company’s electric vehicle intelligent charging and replacement system business realized an operating revenue of 1.176 billion yuan, with a year-on-year increase of 13.93%, mainly due to the company’s increased development of the household market. The company continued to strengthen the research and development of charging and switching technology, completed the research and development of 1500 V energy storage converter, battery pack module, new energy fast power control and other core products, and realized the loading application of high-performance, high-power and wireless charging and discharging products. In 2022, the emerging energy consumption scenario on the distribution side may lead to the continuous growth of charging and replacing business.
Maintain the “buy” rating: the competition of the company’s power transformation and distribution business intensifies and the DC business is subject to the expectation of new energy construction. We reduce the company’s profit forecast for 2022 / 23 and introduce the profit forecast for 2024. It is expected that the company will realize the net profit attributable to the parent company of 924 / 1041 / 1219 million yuan in 22-24 years (down 13% / down 16% / new), the corresponding EPS is 0.92/1.03/1.21 yuan, and the current stock price is 15 / 13 / 11 times that of PE in 22-24 years. The company’s intelligent power transformation and distribution business is growing steadily, and the DC business is expected to achieve rapid growth in the growth period of UHV construction. We are still optimistic about the long-term development of the company and maintain the “buy” rating.
Risk warning: the development of power transmission and distribution industry is not as expected; UHV project and offshore flexible DC transmission construction were not as expected; The risk of declining profits due to increased competition.
