\u3000\u3 Guocheng Mining Co.Ltd(000688) 023 Dbappsecurity Co.Ltd(688023) )
Investment events: the company released the annual report of 2021 and the first quarterly report of 2022: (1) the total operating revenue in 2021 was 1.82 billion yuan, a year-on-year increase of 37.59%; The net profit attributable to the parent company was 14 million yuan, a year-on-year decrease of 89.71%; Net profit deducted from non parent company was -80 million yuan, a year-on-year decrease of 165.91%. (2) In the first quarter of 2022, the operating revenue was 233 million yuan, a year-on-year increase of 26.9%; The net profit attributable to the parent company was – 190 million yuan, a year-on-year decrease of 50.76%; Net profit deducted from non parent company was -196 million yuan, a year-on-year decrease of 50.38%.
High growth of operating income and strengthening investment in new strategic directions. The company’s revenue in 2021 was 1.82 billion yuan, a year-on-year increase of 37.59%, and the revenue in the first quarter of 2022 was 233 million yuan, a year-on-year increase of 26.9%. In 2021, the annual revenue scale of the company achieved high growth, mainly because the company continued to strengthen market development, deepen the product and service structure, and continuously improve the competitiveness in the fields of cloud security, big data security, Internet of things security, industrial Internet, smart city security and security services. In terms of breakdown, the company’s network information security basic products achieved an operating revenue of 528 million yuan in 2021, a year-on-year increase of 14.51%; Network information security platform products achieved an operating revenue of 588 million yuan, with a year-on-year increase of 31.99%. Among them, products related to new strategic directions launched by the company, such as data security related products, achieved ultra-high growth; Network information security services achieved an operating revenue of 589 million yuan, a year-on-year increase of 59.83%. In addition, the company further increased investment in new strategic directions. In terms of industry expansion, the company’s market share in finance, operators, medical treatment, education, enterprises and other customers showed a further upward trend. In terms of new business, the company has cultivated new ecology in high growth tracks such as digital economy, data security and personal information security. For example, the company has participated in Hefei Gaowei and increased investment in Hangzhou Franco to further improve data security solutions. With the continuous maturity of new products and new directions, the company is expected to usher in new growth points of performance.
Sustained high R & D and sales investment, laying the foundation for long-term high growth of business. In order to develop products in new directions, the company needs to invest a large number of technical R & D personnel with high ability, and the market promotion of products related to new strategic directions also needs to be strengthened. During the reporting period, the total sales expenses and R & D expenses were about 1.182 billion yuan, an increase of about 57.38% over the same period of last year. In 2021, the number of R & D personnel of the company was 1255, with a year-on-year increase of 37.6%. The proportion of R & D personnel in the total number of the company increased to 34.75%, with a year-on-year increase of 1.21pcts. During the reporting period, the company newly applied for 628 patents, obtained 132 approved patents (all invention patents), and added 63 registered software copyrights. The company continues to strengthen R & D and sales investment, continuously enhance the competitiveness of products and services, and improve the ability of market expansion, laying a solid foundation for the sustainable development of the company’s long-term performance.
The network security industry is booming and the demand for data security is strong. As a leader in the field of information security, the company will continue to benefit. In 2021, China ushered in the first year of digital security. The successive promulgation of laws and regulations such as the data security law, the personal information protection law and the regulations on the security protection of key information infrastructure have once again injected strong impetus into the sustained and rapid development of the network security market. With the continuous maturity and universal application of cloud computing, big data, Internet of things, 5g and other technologies, the demand of end users for network security products and services will continue to increase. As one of the leaders in the field of information security in China, the company actively grasps the development trend of the industry, takes the customer and market demand as the guidance, and strengthens the investment in technology research and development, market development and management optimization of relevant products and platforms in new strategic directions such as data security, information creation security, terminal security and intelligent security gateway. At the same time, it also lays a solid foundation for the company’s cloud security service strategy.
Investment suggestion: Dbappsecurity Co.Ltd(688023) as a leader in the field of information security, we are optimistic about the development of the company for a long time. Considering the intensified market competition, we slightly lowered the company’s revenue expectation. We expect the company’s revenue to be 2.547 billion yuan, 3.457 billion yuan and 4.665 billion yuan in 2022 / 2023 / 2024 (2.692 billion yuan and 3.857 billion yuan in 22-23 years before adjustment), with a year-on-year increase of 40%, 36% and 35%; Considering that the company has increased investment in R & D and sales and the impact of the epidemic has increased, which has a great impact on the profit side, the net profit attributable to the parent company is 150 million, 240 million and 375 million yuan (280 million and 410 million yuan in the 22-23 years before adjustment). The company’s EPS in 2022, 2023 and 2024 are 1.91/3.06/4.79 yuan respectively (the original forecast of 22-23 years is 3.59 yuan and 5.25 yuan), corresponding to pe61 7 / 38.6 / 24.7 times, considering high income growth and profit improvement, give a “buy” rating.
Risk tip: the impact of the epidemic, the risk of new market development, the company’s business progress is less than expected, and the market competition is intensified
