\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 54 Sangfor Technologies Inc(300454) )
Event overview
On April 26, 2022, Sangfor Technologies Inc(300454) released the report for the first quarter of 2022. In the first quarter of 2022, the company achieved a total operating revenue of 1.144 billion yuan, a year-on-year increase of 4.76%. The company's net profit attributable to shareholders of listed companies was RMB -518 million, a year-on-year decrease of 438.9%.
Multiple factors lead to short-term pressure on performance, and the company is not afraid of short-term disturbance. The company maintains strategic concentration in its operation
According to the company's announcement, affected by the epidemic situation in Shenzhen and Dongguan, some raw materials were not delivered in time and production and delivery were stagnant, resulting in some orders not delivered in time, affecting revenue recognition; The epidemic broke out in Jilin, Shanghai and some other cities, which greatly affected the local business development; In addition, affected by multiple factors such as customer demand and intensified market competition, the company's new orders are not ideal. We judge that the superposition of multiple factors led to the slowdown of the company's revenue growth in the first quarter, and the subsequent influencing factors are expected to be alleviated.
In the first quarter, the company's loss increased by 349 million yuan year-on-year, of which the operating cost increased by 105 million yuan year-on-year, with a year-on-year increase of 28.52%. The main reason why the growth rate of operating cost was higher than the growth rate of revenue was that the order growth of network security business was not ideal, and some raw materials in network security business were out of stock due to the epidemic, and the growth rate of network security revenue was significantly lower than that of cloud computing and it infrastructure business, basic network and Internet of things business, As a result, the proportion of businesses with low gross profit margin in the reporting period further increased; On the other hand, the rise in hardware procurement costs also has a certain impact on the company's operating costs.
The cost side sales expenses increased by 116 million yuan, the management expenses increased by 27 million yuan, and the R & D expenses increased by 129 million yuan, mainly due to the increase of salary and social security expenses caused by the increase of sales, management and R & D personnel and the salary increase at the beginning of the year. We judge that under the short-term pressure of performance, the company's operation maintains strategic concentration, R & D and sales are still high investment, the relevant layout is worth looking forward to, and the growth rate of the company's revenue is expected to return.
The normalization of epidemic control accelerates enterprises to go to the cloud and work with operators to expand the new blue ocean of DAAS
Since March this year, epidemic control has been upgraded in many places. Under the call of the policy, home office has become the norm. Core work such as R & D and finance is the lifeline of the enterprise, with high requirements for safety Sangfor Technologies Inc(300454) takes itself as the "model 0". With the support of its own DAAS desktop cloud, more than 3000 R & D, finance and other office personnel maintain the efficient operation of the enterprise through remote office and ensure the data security to the greatest extent.
Since 2012, enterprises represented by Huawei and Sangfor Technologies Inc(300454) have begun to increase technical research and product R & D in the desktop cloud industry. China's desktop cloud industry has entered a growth period and the industry has developed rapidly. According to Gartner, among various cloud services such as IAAs / PAAS / SaaS / DAAS, DAAS has the fastest growth rate, reaching 95.4% in 2020. Since the development of desktop cloud, DAAS has become a new choice for users.
As an important partner of operators, Sangfor Technologies Inc(300454) will rely on its own technical advantages to cooperate with operators to promote the landing of DAAS desktop cloud and jointly explore the blue ocean market.
Investment advice
Based on the company's first quarterly report data and the impact of the epidemic, we lowered the company's revenue forecast of 9.138123.15/16.672 billion yuan in 22-24 years to 8.531107.39/13.576 billion yuan in 22-24 years; The forecast of earnings per share (EPS) of 1.87/3.03/4.84 yuan in 22-24 years was lowered to 1.28/2.02/3.11 yuan in 22-24 years, corresponding to the closing price of 87 yuan / share on April 26, 2022, and PE was 67.7/43.1/28.0 times respectively, maintaining the "buy" rating of the company.
Risk tips
1) the epidemic has led to the decline of enterprise IT budget; 2) The intensification of industry competition leads to the decline of profitability; 3) The progress of core technology breakthrough is lower than expected; 4) The promotion process of new products is not as expected; 5) Loss of core talent team of the company.
