\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Event: the company released its 2021 annual report. In 2021, it realized an operating revenue of 5.809 billion yuan, a year-on-year increase of 39.60%; The net profit attributable to the parent company is – 555 million yuan; The net profit attributable to the parent company after deducting non profits was -788 million yuan.
The company released the first quarterly report of 2022, realizing an operating revenue of 659 million yuan, a year-on-year increase of 44.52%; Net profit attributable to parent company -480 million yuan; Net profit attributable to parent company after deduction of non – profit -196 million yuan
Financial indicators have improved. In 2021, the gross profit margin of the company was 60.01%, with a year-on-year increase of 0.44pct; After deducting the share based payment expenses, the R & D expense rate, sales expense rate and management expense rate decreased by 1.38%, 2.90% and 2.21% respectively in 2021. The share based payment expenses generated by the company’s 2020 restricted stock incentive plan in 2021 were 256 million yuan more than those in 2020. In 2020, the company’s social security relief expenses due to the epidemic were 179 million yuan. Excluding the above factors, the net profit in the reporting period was significantly narrowed compared with the loss in the same period last year, and the loss reduction rate exceeded 40%.
A number of products remain first. In 2021, according to the data of IDC and CCID, it ranked first in IT security consulting service manufacturers, Chinese terminal security software market share, Chinese security analysis and intelligence market share, Chinese government industry IT security software market share report, security service market share and other product lines.
The development potential of data security business is huge. In 2021, the revenue of the company’s new track products accounted for more than 70% of the revenue of security products and services. Among them, 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, right guard, API guard, privacy guard and data security situation operation center.
Investment suggestion: the company’s revenue maintains a high-speed growth trend, and its scale is the first array of China’s information security companies. We expect the company’s EPS from 2022 to 2024 to be 0.34 yuan, 0.95 yuan and 1.33 yuan respectively, maintaining the “buy” rating.
Risk tip: the growth of data security business is less than expected; Industry competition intensifies.
