\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 68 Hangzhou Dptech Technologies Co.Ltd(300768) )
Event overview
On April 26, 2022, the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company realized an operating revenue of 1.03 billion yuan, a year-on-year increase of 15.59%; The net profit attributable to the parent company was 309 million yuan, a year-on-year increase of 11.91%; The net profit deducted from non parent company was 295 million yuan, with a year-on-year increase of 14.44%. In the first quarter of 2022, the company achieved an operating revenue of 214 million yuan, a year-on-year increase of 10.32%, a net profit attributable to the parent company of 45 million yuan, a year-on-year decrease of 2.40%, and a net profit deducted from non attributable to the parent company of 45 million yuan, a year-on-year decrease of 1.83%. In the short term, the company's revenue growth slowed down and its profits were under pressure, mainly due to the insufficient supply of chips and the disturbance of repeated external factors. We believe that the medium and long-term growth trend of the industry remains unchanged and wait for the inflection point to come.
21q4 and 22q1 are under pressure in terms of revenue and profit, and the impact of external disturbance is large
From the revenue side, the company achieved an operating revenue of 288 million yuan in a single quarter of 21q4, a year-on-year decrease of 14.57%, which was significantly lower than the year-on-year growth rate of 30.16% in 21q3. 22q1 company achieved a revenue of 214 million yuan, a year-on-year increase of 10.32%, which was improved compared with 21q4, but the growth rate was still low. We think it is mainly influenced by two external factors. According to the annual report, on the one hand, the tight supply of chips delayed the delivery of the project, which affected the revenue recognition of 21q4 in a single quarter. On the other hand, since 22q1, the epidemic has shown a multi-point distribution trend. The company's downstream advantageous customers are mainly operators, financial, power and energy high-value customers. The control brought by the epidemic has partially affected the delivery progress of the company's downstream customers, thus affecting the revenue growth of 22q1. Throughout the year, we believe that as the external disturbance factors gradually subside, the company's performance growth is expected to improve quarter by quarter, and the annual growth is expected to exceed the growth rate of 22q1. From the profit side, the company's comprehensive gross profit margin in 2021 was 71.45%, up 0.93pct year-on-year, and the comprehensive gross profit margin in 22q1 was 67.70%, down 3.90% year-on-year. We believe that the decline of 22q1 comprehensive gross profit margin has affected the growth of the company's overall net profit. Behind it is still the price rise caused by tight chip supply, which has affected the gross profit margin level in the short term. In the long run, the company's gross profit margin is still expected to remain in a high range. On the other hand, under the pressure of the industry as a whole, the company still maintained a high R & D investment. In 2021, the company's R & D expenses increased by 25.86% year-on-year, exceeding the growth rate of revenue. We believe that higher R & D investment is conducive to maintaining the competitive advantage of the company's products. In the future, with the recovery of higher growth on the revenue side of the company, the R & D expense rate is expected to decline and promote the release of the company's profits.
Operators, finance and other high-value customers continue to expand, with sufficient order reserves
From the perspective of development strategy, the company focuses on network security products and application delivery products, focuses on high-value operators, finance, power and energy and other customers, and continues to expand to other customers such as government enterprises. From the development of the company since 2021, the company has continued to make breakthroughs in orders in core operators, finance and other fields. At present, the reserve of orders on hand is sufficient, which provides favorable support for the company's future performance. In terms of operator customers, according to the company's official wechat disclosure, the company was successfully shortlisted for China Mobile's 20212022 hardware firewall product centralized purchase project, won the bid for China Mobile's 20212023 WAF software centralized purchase project, and won the bid for China Mobile's 20202023 security vulnerability scanning software centralized purchase project. According to the disclosure of China United Network Communications Limited(600050) official procurement website, Hangzhou Dptech Technologies Co.Ltd(300768) won the bid for China United Network Communications Limited(600050) firewall centralized procurement project in 2021. The company has won many network security products in the field of operators, which reflects its strong technical strength.
In terms of financial customers, according to the company's official wechat disclosure, the company won the exclusive bid of Agricultural Bank Of China Limited(601288) 2021 Guoxin load balancing equipment project and China Life Insurance Company Limited(601628) Guoxin load balancing equipment project in 2021. At the moment, the load balancing products of DUP '''s current load balancing products have been widely applied to the load balancing products of DUP ''s currently. At the moment, the load balancing products of DUP' ''s currently being widely applied to the Industrial And Commercial Bank Of China Limited(601398) 9 insurance, Taiping Insurance, BOC insurance, Founder Securities Co.Ltd(601901) , Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) and other insurance and securities users. Relying on load balancing products in the financial industry, the company is expected to continue to benefit from the promotion of financial information innovation.
Investment advice
Hangzhou Dptech Technologies Co.Ltd(300768) focuses on the field of network security and application delivery. It is a leading manufacturer in China's network security industry. At present, the company focuses on high-value customers such as operators, finance and power energy, and gradually expands to other customers such as government enterprises. The short-term performance of the company is disturbed by the lack of core and the impact of the epidemic, but there are abundant orders on hand in the medium and long term, which is expected to continue to achieve steady growth. We expect the company to achieve an operating revenue of RMB 1.225/14.76/1.779 billion in 2022 / 23 / 24, with a year-on-year increase of 18.9% / 20.5% / 20.6%. The net profit attributable to the parent company was RMB 328 / 409 / 500 million, with a year-on-year increase of 6.0% / 24.8% / 22.2%. For the first time, the investment rating of overweight-a is given, and the six-month target price is 22.80 yuan, corresponding to 30 times the dynamic P / E ratio in 2022.
Risk tip: the chip capacity is not alleviated as expected; The multi-point spread of the epidemic affects delivery.
