\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Event: on April 26, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 5.809 billion yuan, a year-on-year increase of 39.60%; 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%. In the first quarter of 2022, the company achieved an operating 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%; Deduct non net profit of -605 million yuan, a year-on-year decrease of 9.26%.
The gross profit margin has continued to rise for four consecutive years, the three rates have decreased significantly, and the per capita income has continued to rise. From 2018 to 2021, the company's gross profit margin continued to increase. In 2021, the overall gross profit margin was 60.01%, an increase of 0.44pct over the previous year. In 2021, the sales expense rate, management expense rate and R & D expense rate were 30.32%, 11.22% and 30.09% respectively, with changes of - 1.4, - 1.42 and 0.58 percentage points respectively over the previous year. In the first quarter of 2022, the sales expense rate, management expense rate and R & D expense rate were 67.83%, 25.49% and 70.41% respectively, down 14.8%, 9.4 and 9.9 percentage points respectively compared with the same period of the previous year. In recent years, the company's per capita income has continued to increase. In 2021, the per capita income was Jiangsu General Science Technology Co.Ltd(601500) yuan, an increase of 67700 yuan over the previous year.
The R & D platform has the capacity of mass production, and the R & D efficiency continues to improve. In 2021, the company firmly promoted the "R & D platform" strategy, and has gradually built eight R & D platforms such as "Kunpeng", "Noah", "Leier", "Zion", "Chuantuo", "Dayu", "Xuanji" and "Qianxing". Based on the eight network security R & D platforms, with a small number of customized special components, the company has quickly developed network security products and solutions that can meet the customized needs of customers. The R & D cycle of most security products will be significantly shortened. The company's eight R & D platforms will end the heavy investment stage ahead of schedule. It is expected that the R & D platform will quickly enter the mass production stage in 2022. Dayu platform is expected to improve the R & D efficiency of situational awareness products by more than 30%; Border security stack products benefited from the mass production of Kunpeng platform, and the R & D efficiency increased by 40% year-on-year.
The market share of the new track ranks first, with outstanding product competitive advantages. The company is a comprehensive network security manufacturer covering all fields, with a comprehensive product layout. The company focuses on new areas and new tracks such as pan terminal security, situational awareness, advanced threat detection, data privacy protection, cloud security, code security, sd-wan, industrial Internet security, zero trust identity security, Internet of vehicles security, Internet of things security, and seizes the opportunity in the "main channel" of the future development of the network security market for key areas and risk areas in information construction. The proportion of the company's product revenue in new fields and new tracks in the company's main revenue continues to increase (the proportion of the revenue of new tracks in the revenue of safety products and services in 2021 is more than 70%), and the market competitiveness has been significantly improved. According to IDC data, the company ranks first in China in terms of market share in terminal security software, hosted security services, cloud security resource pool, security consulting services, situational awareness, security analysis and Threat Intelligence.
Investment suggestion: as a leader in China's network security field, the company continues to research, develop and innovate. With a comprehensive product system and strong security service ability, its performance is expected to continue to maintain high-speed growth. We estimate that the operating revenue of the company from 2022 to 2023 will be RMB 8.133 billion, RMB 11.223 billion and RMB 15.263 billion respectively, the net profit attributable to the parent company will be RMB 72 million, RMB 307 million and RMB 478 million respectively, and the EPS will be RMB 11 million, RMB 45 million and RMB 70 million respectively. At present, the company has less than 4x PS in 2022, the valuation is at a historical low, and maintains the "buy" rating.
Risk warning: policy promotion is not as expected; Increased competition led to lower than expected product sales.
