\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Revenue continued to grow at a high level, and the quality of operation improved significantly. In 2021, the company achieved a total revenue of 5.809 billion yuan, an increase of 39.60% over the same period of the previous year. In the past five years (20172021), the compound growth rate of revenue reached 63.08%, and the net profit attributable to the parent company was -555 million yuan, a year-on-year decrease of 65.91%; Deduct non net profit of -788 million yuan, a year-on-year decrease of 46.15%. Benefiting from the gradual performance of the company’s R & D platform, the core competitiveness of the company’s products was significantly enhanced, and the gross profit margin of safety products was 77.02%, up 4.78% year-on-year. The overall operating efficiency has been improved. In 2021, the gross profit margin increased by 0.44 percentage points year-on-year to 60.01%. In 2021, the sales expense rate, R & D expense rate and management expense rate were 30.32%, 30.09% and 11.22% respectively, with changes of – 1.4%, 0.58% and – 1.42% respectively. 22q1 achieved a revenue of 659 million yuan, a year-on-year increase of 44.52%; The net profit attributable to the parent company was -481 million yuan, a year-on-year increase of 10.41%.
The market share and competitiveness of new track products continue to lead the industry. In 2021, the revenue of the company’s new track products accounted for more than 70% of the revenue of safety products and services: 1) the overall revenue of situational awareness products was nearly 1.2 billion yuan (excluding data security situational awareness, and the revenue of data security situational awareness category was counted in the revenue of data security category), with a year-on-year growth rate of more than 30%. Due to the practical polishing of the Winter Olympics scene, the company’s Dayu platform has completed its investment period ahead of schedule and is about to enter the mass production stage. After mass production, Dayu platform is expected to improve the R & D efficiency of situational awareness products by more than 30%; 2) The revenue of terminal security (including cloud server and virtualization terminal protection) products exceeded 800 million yuan, with a year-on-year growth rate of more than 30%; The company’s terminal security products have achieved more than 50 million commercial deployment in government and enterprise customers, and the market share has ranked first in China for four consecutive years; 3) The revenue of data security and privacy protection products exceeded 1.1 billion yuan, with a year-on-year growth rate of more than 50%. The company has released five sets of data security innovative products, including privilege guard, authority guard, API guard, privacy guard and data security situation operation center.
By virtue of the product card position, channel and R & D competitiveness, the company has quickly seized the market, and the high-speed growth of the head government and enterprise customer base has verified the competitiveness of the company’s network security products and services. The revenue of the company’s customers in key information infrastructure industries such as operators, finance, energy and medical treatment and government customers continued to grow rapidly. In 2021, the company’s customer revenue in the government industry was nearly 1.7 billion, accounting for more than 29% of the main business revenue, and the revenue growth rate was more than 42%; The customer income of the public security, procuratorial and judicial department exceeded 900 million yuan, accounting for more than 16% of the main business income, and the income growth rate exceeded 45%; The revenue of enterprise customers exceeded 3.1 billion, accounting for nearly 54% of the main business revenue, with a year-on-year growth rate 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%.
We will continue to implement the “high-quality development strategy” and improve human efficiency, growth rate of core products and gross profit margin. 1) The company’s “high-quality development” strategy has achieved remarkable results. In 2021, the overall gross profit margin was 60.01%, with a year-on-year increase of 0.44 percentage points. The annual per capita income was Jiangsu General Science Technology Co.Ltd(601500) yuan, 67700 yuan higher than that of the previous year, and the per capita income was 12.70% higher than that of the previous year; 2) The card position is high and the track is prosperous, and there is no worry about the sustainability of growth. The company is not only in the forefront of the market in traditional security fields such as terminal security and UTM, but also in the market leading position in emerging fields such as cloud security and situational awareness. According to the reports of CCID Consulting, IDC and other third-party institutions, the company has the first market share in the field of terminal security in the new generation IT infrastructure protection product system, security management platform, cloud security and security services in the big data intelligent security detection and control product system. High R & D investment is expected to turn into strong technical barriers and achieve a leading position in the new track.
Investment suggestion: considering the company’s leading position in the industry and the repeated impact of the epidemic, it is estimated that the operating revenue from 2022 to 2024 will be 7.828 billion, 10.190 billion and 13.026 billion respectively, and the net profit attributable to the parent company will be 327 million, 761 million and 1.301 billion yuan respectively, maintaining the “buy” rating.
Risk warning: competition intensifies risk; The policy strength is less than the expected risk; Slow layout of new areas risks.
