\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Key investment points
Performance summary: the company achieved an operating revenue of 5.81 billion yuan in 2021, a year-on-year increase of 39.6%; In 2021, the company realized a net profit attributable to the parent company of - 550 million yuan, with a year-on-year increase of 65.9% over the previous year.
The company's annual revenue increased significantly in 2021, and its gross profit margin maintained a growth trend for four consecutive years. 1) From the revenue side, the company's revenue increased by 39.6% year-on-year in 2021, mainly due to the new ideas of the company's network security competent department driving the transformation of government and enterprise customer demand, the company's endogenous security technology concept and new track safety products promoting the rapid growth of customer revenue in various industries, and the competitiveness of new track products increased. 2) From the profit side, the net profit attributable to the parent company in 2021 was not profitable, and the loss increased by 65.9% year-on-year, mainly because the company is still in the period of strategic investment, high R & D investment, long cycle, rapid expansion of R & D personnel and high R & D expenses. The gross profit margin of the company was 60%, basically the same as that of the same period last year. 3) From the expense side, the company's sales, management and R & D expense rates in 2021 were 30.3%, 11.2% and 30.1% respectively, of which the R & D expense increased by 42.4% year-on-year, mainly due to the large changes in R & D expenses caused by the increase in the number and salary level of the company's R & D personnel.
The advantages of the new track products are prominent and continue to lead the whole industry. The company's new track product revenue accounts for more than 70% of the revenue of security products and services, of which the revenue growth of data security and privacy protection products exceeds 50%; The revenue of situation awareness products was nearly 1.2 billion yuan, a year-on-year increase of more than 30%; The revenue of terminal security products increased by more than 30% year-on-year, and the market share ranked first in China for four consecutive years. Affected by the actual combat of the Winter Olympic Games, the company has realized the in-depth collaborative linkage between terminal security products and cloud, gateway and platform products. The investment period of Dayu platform is completed ahead of schedule and will soon enter the mass production stage. After mass production, the efficiency of product R & D will be greatly improved and the process of product renewal will be accelerated.
The revenue of customers in various industries has increased rapidly, and major breakthroughs have been made in the overseas market. In 2021, the revenue of the company's customers in key information infrastructure industries such as operators, finance, energy and medical treatment and government customers increased rapidly. Among them, the revenue of government customers accounted for more than 29% of the main business, with a growth rate of more than 42%, the revenue of customers of the public security, procuratorial and judicial department increased by more than 45%, and the growth rate of operators exceeded 66%. The international competitiveness of the company's new track core products has been enhanced, and the product characteristics are more in line with the characteristics of overseas users. It is expected that there will be broad growth space in the overseas market in the future.
Profit forecast and investment suggestions. It is estimated that the operating revenue from 2022 to 2024 will be 8.28 billion yuan, 11.77 billion yuan and 16.64 billion yuan respectively, and the operating revenue will reach a compound growth rate of 42.0% in the next three years. Considering that policies promote the development of the industry and the high prosperity of the network security industry, the company, as a leading enterprise in the field of network security, has invested heavily in technical product research and development and customer expansion. It is expected that the company's order volume will increase significantly in 2022 and maintain the "buy" rating.
Risk warning: risks such as customer expansion falling short of expectations and R & D projects falling short of expectations.
