\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 54 Sangfor Technologies Inc(300454) )
Event: the company released its 2021 annual report. The revenue was 6.805 billion (+ 24.7%), the net profit attributable to the parent was 273 million (- 66.3%), the non net profit deducted was 131 million (- 80.7%), and the contract liability was 1.16 billion (+ 60.5%), of which Q4 realized revenue of 2.429 billion (+ 9.7%), the net profit attributable to the parent was 405 million (- 45.2%), and the non net profit deducted was 345 million (- 48.5%).
Revenue growth is in line with expectations, and cloud computing business has achieved rapid growth. In terms of business, the revenue of network security business, basic network and Internet of things reached 3.69 billion and 740 million respectively, with a year-on-year increase of 10.2% and 42.2%. Meanwhile, based on the rapid growth of application scenarios, the revenue of cloud computing and it infrastructure business reached 2.38 billion, a year-on-year increase of 49.5%. By industry, the government, public institutions and enterprises increased by 15.5% and 39.9% to 3.42 billion and 2.62 billion respectively, accounting for 50.3% and 38.5% of the revenue. Financial and other industries increased by 22.5% to 770 million, accounting for 11.3% of revenue.
The mismatch between revenue and profit growth is mainly due to the decline of gross profit margin and the increase of expenses. In 2021, the comprehensive gross profit margin of the company's business was 65.5%, a year-on-year decrease of 4.5pct. The increase in the proportion of cloud business revenue with low gross profit margin and the rise in hardware procurement costs caused by tight chip supply affected the short-term gross profit margin. At the same time, the cost increased rapidly, and the cost rate during the period was 67.5%, with a year-on-year increase of 4.2pct. Among them, due to the further increase of the company's R & D investment, the further increase of the scale of sales personnel and the implementation of a number of equity incentive plans, the expense rates of R & D expenses, sales expenses and management expenses were 30.7%, 34.0% and 5.8% respectively, with a year-on-year increase of 3.1pct, 0.8pct and 0.8pct.
The competitiveness of products has been continuously enhanced, adhere to the xaas strategy and create the second growth curve. The company has been deeply engaged in the network security business for many years, and has a certain core competitiveness and market position in the industry. Among them, the market share of VPN, Internet behavior management and other products has been in the leading position in the industry for many years, and the network security business revenue is expected to maintain a high growth rate in the future. The core technology of cloud business remains ahead. The company's super integrated HCl products incubate a number of potential application scenarios in 2021, achieve breakthroughs in different industries such as finance, government and public institutions, and achieve rapid growth of desktop cloud products in finance, enterprises, localization adaptation and other scenarios. At the same time, since 2021, the company has made clear the strategic goal of xaas priority, gradually promoted the cloud, online and service-oriented business of the company, and created the second growth curve of the company's long-term development through the change of business model.
Adjusting the revenue growth rate, gross profit margin and expense rate, we predict that the company's revenue in 22-24 years will be 8.814 billion yuan, 11.256 billion yuan and 14.146 billion yuan respectively (the original forecast of 22-23 years is 10.645 billion yuan and 14.219 billion yuan respectively). Due to the company's obvious market advantages in safety and super integration, according to the 22-year PS Level of comparable companies, the company will be given 6 times PS in 22 years, with a corresponding reasonable share price of 127.13 yuan, maintaining the buy rating.
Risk tips
The risk that the policy implementation is less than expected; Risks of intensified competition in network security and cloud computing industry
