\u3000\u3 Shengda Resources Co.Ltd(000603) 232 Koal Software Co.Ltd(603232) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 611 million yuan, a year-on-year increase of 37.38%; The net profit attributable to the parent company was 80 million yuan, a year-on-year increase of 39.65%, and the net profit not attributable to the parent company was 33 million yuan, a year-on-year decrease of 28.26%. In 2022q1, the company realized an operating revenue of 137 million yuan, a year-on-year increase of 87.55%; The loss of net profit attributable to the parent company was 56 million yuan, which basically met the market expectation.
Key investment points
Continued high growth in revenue: the company achieved revenue of 611 million yuan in 2021, a year-on-year increase of 37.38%; The net profit attributable to the parent company was 80 million yuan, a year-on-year increase of 39.65%, and the net profit not attributable to the parent company was 33 million yuan, a year-on-year decrease of 28.26%. Non recurring gains and losses have a great impact, mainly because the company uses temporarily idle funds for cash management. In terms of business, in 2021, the company’s revenue of PKI infrastructure products was 133 million yuan, with a year-on-year increase of 186.95% and a gross profit margin of 61.42% (year-on-year -17.6pct); The revenue of PKI security application products was 197 million yuan, with a year-on-year increase of 5.28% and a gross profit margin of 76.12% (year-on-year -3.33pct); The revenue of general safety products was 281 million yuan, with a year-on-year increase of 33.05% and a gross profit margin of 30.03% (year-on-year + 1.9pct). In 2021, the company continued to increase various inputs and expand multiple products and industries based on PKI. The high revenue growth in 2022q1 continued. The low gross profit margin in 2022q1 was mainly due to the fact that some businesses related to Xinchuang and general safety products were included in the operating revenue in the first quarter due to the acceptance time point, implementation cycle and other reasons. General safety products accounted for a relatively high proportion of the projects that confirmed the revenue.
The development of new markets is progressing smoothly: the company’s identity authentication and data security application platform has realized global deployment and application in six military industrial groups, and formed seven industry solutions. The password service platform has completed the planning layout and platform construction in 2 industries and 4 regions. While continuing to cultivate advantageous fields, in 2021, the company successfully expanded the planning and construction of top-level identity authentication platform / password service platform of five ministries and commissions and four central enterprises, and built benchmark projects in the headquarters of national ministries and commissions and central enterprises.
Continue to increase R & D investment and improve product competitiveness: the company’s R & D expenditure in 2021 was about 110 million yuan, with a year-on-year increase of 38.17%. It released new products and services in key information infrastructure in emerging fields such as cloud computing, industrial Internet, Internet of vehicles and blockchain. The company undertook and successfully operated the government information creation cloud password service platform carrying large-scale business to provide integrated cloud password protection services to government cloud tenants. It provides multi tenant capability for v2x infrastructure, completes the adaptation of multiple vehicle end environments, and successfully enters the production of mass production models. Multi tenant security services based on subscription mode are provided in e-signature, secure email and other services.
Profit forecast and investment rating: considering that the company continues to increase personnel investment, we will reduce EPS from 0.65/0.87 yuan to 0.45/0.58 yuan in 20222023. It is estimated that EPS will be 0.75 yuan in 2024, and the current market value corresponds to 22 / 17 / 13 times of PE in 20222024. The company has outstanding PKI technology advantages, continues to be optimistic about the expansion ability of new application scenarios, and maintains the “buy” rating.
Risk tip: the information security market is lower than expected, and the construction of security cloud platform is lower than expected
