\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) Shenzhen Guohua Network Security Technology Co.Ltd(000004) 00)
Event: on April 26, the company released its 2021 annual report. In the past 21 years, the company achieved a revenue of 11.991 billion yuan, a year-on-year increase of 7.14%; The net profit attributable to the parent company was 724 million yuan, a year-on-year increase of 1.17%; The non net profit deducted attributable to shareholders of listed companies was 668 million yuan, a year-on-year increase of 10.45%; The basic earnings per share is 0.72 yuan. Among them, 2021q4 achieved a revenue of 4.456 billion yuan, a year-on-year decrease of 3.11%, and the net profit attributable to the parent was 145 million yuan, a year-on-year decrease of 28.81%, which was mainly due to the short-term performance of the parent affected by the company’s transfer of 25% equity of Zhuhai XJ in 21 years. The overall performance of the whole year was stable and in line with expectations.
Improve profitability, increase R & D and maintain technology leadership. In 2021, the overall gross profit margin of the company reached 20.58%, with a year-on-year increase of 0.4 PCT, of which the gross profit margin of intelligent power transformation and distribution system, intelligent electricity meter and intelligent medium voltage power supply and consumption equipment increased slightly, and the gross profit margin of DC transmission system reached 46.23%, with a year-on-year increase of 18.26 PCTs. Under the “double carbon” goal, the company focused on innovative technology and increased R & D investment, with a total R & D investment of 617 million yuan, a year-on-year increase of 15.78%, accounting for 5.14% of operating revenue. The R & D direction of the company includes ultra-high voltage and power electronics, intelligent substation, new energy and grid connection, primary equipment and its intellectualization, intelligent power distribution, intelligent power consumption, self-control, intelligent operation inspection, charging pile, energy storage, intelligent manufacturing and technology, etc. the automatic production level is in the leading position in the same industry.
The scale of power grid investment has expanded, and the markets inside and outside the power grid go hand in hand. Compared with the 13th five year plan, the investment scale of the power grid company in the 14th five year plan has increased significantly. The company’s share in the centralized bidding of the State Grid has increased steadily. Products such as converter valve have won the bid of “Baihetan Jiangsu” UHV project, DC control and protection system has won the bid of “Fujian Guangdong networking” UHV project, smart meter and other products have won the bid of the first electricity meter bidding procurement of the State Grid marketing project, and their shares are in a leading position. In the southern power grid market, the company won the bid for the pilot project of the first prefabricated modular substation of the southern power grid, and the core equipment of the distribution network made a major breakthrough for the first time in Yunnan. In addition, the company has actively explored the market outside the network. At present, it has won the bid for the protection equipment of the transformer group of the state power investment and dispatching Corporation and equipped with 10kV gas filled cabinets and other products. The railway auxiliary monitoring system leads other manufacturers in the bid winning share of the State Railway Corporation. In addition, the company cooperates with State Power Investment Corporation and National Energy Corporation to sign new contracts in new energy supporting, rail transit and other industrial markets, with rapid year-on-year growth, and is expected to provide new growth points in the future.
“Three calculations and three comparisons” management improved the collection quality, and the operating cash flow increased significantly. The company established a profit control system of “three calculations and three comparisons”, promoted the lean management of payment collection, and greatly improved the quality of payment collection. In the case of income growth, the net amount of accounts receivable was 6.091 billion yuan, a year-on-year decrease of 23.37%. The net cash flow from operating activities was 1.304 billion yuan, a year-on-year increase of 66.49%, mainly due to the significant increase in cash receipts in the current period.
Investment suggestion: the company is expected to benefit from the increase of power grid investment scale during the 14th Five Year Plan period. We expect the company’s revenue to be 13.743 billion yuan, 15.868 billion yuan and 18.412 billion yuan in 2022 / 23 / 24, with revenue growth rates of 14.6%, 15.5% and 16.0% respectively; The net profit attributable to the parent company was RMB 878 million, RMB 1082 million and RMB 1348 million, and the growth rate of net profit attributable to the parent company was 21.3%, 23.2% and 24.6% respectively. Corresponding to the closing price on April 26, the 22-24 year valuation of the company is divided into 16x, 13X and 10x. Maintain a “recommended” rating.
Risk warning: the risk of sharp fluctuations in the price of raw materials; The risk of power grid investment not reaching the expectation, etc.
