\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
Events
The company released the first quarterly report of 2022. In 2022q1, the operating revenue was 64.01 million yuan, with a year-on-year increase of 31.53%, and the net profit attributable to the parent was -1.57 million yuan, with a year-on-year decrease of 506.33%, of which the net profit attributable to the parent after deduction was -3.06 million yuan, with a year-on-year increase of 33.77%.
Comments
From the revenue side, the company’s revenue growth in 2022q1 was slightly higher than expected. Although some regions were affected by the epidemic in the first quarter, we judged that considering that some machines and equipment of the company had issued revenue to be confirmed in the early stage, on the whole, the epidemic had little impact on the company’s revenue recognition in the first quarter. The equipment issued by the company can be reflected from the inventory. The book inventory balance of the company on March 31, 2022 was 78.26 million yuan, an increase of 20% compared with the end of 2021, which also reflects the smooth development of the company’s business in the first quarter under the epidemic.
From the profit side, the company’s net profit attributable to the parent company in 2022q1 declined due to the delay of VAT immediate tax refund (RMB 6.9265 million). If the tax refund was added back, the company’s net profit attributable to the parent company in 2022q1 would be RMB 5.36 million. (the net profit attributable to the parent company in the same period last year has a small base, which is -258100 yuan). At the same time, the company achieved a gross profit margin of 72.7% in 2022q1, which is equivalent to the level in 2021, reflecting the strong product-oriented ability of the company.
In terms of industry, according to the regulations on the administration of commercial passwords (Draft for comments on the revised draft) issued in August 2020, “The operators of non classified key information infrastructure, networks with network security level protection above the third level, national government information system and other networks and information systems should use commercial passwords for protection. When formulating commercial passwords, they should conduct commercial password application security assessment by themselves or entrust commercial password testing institutions”. We believe that with the implementation of the data security law and the personal information protection law of 2021, The confidential evaluation of the above important systems is expected to be carried out on a large scale in 2022, providing new business opportunities for the company’s business development. We are optimistic about the company’s business expansion in the field of government and enterprises based on its advantages in the financial industry.
Investment advice
Based on the growth of the company’s revenue in 2022q1 and the demand catalysis brought by the confidential evaluation work in the industry, we maintain the previous financial forecast, which predicts that the company’s revenue in 20222024 will be 708 / 921 / 1178 million yuan, and the net profit attributable to the parent company will be 196 / 261 / 353 million yuan, maintaining the “buy” rating.
Risk tip: the expansion of the company in the government and enterprise industry is not as expected; The transformation process of state secret algorithm is not as expected; Repeated outbreaks have slowed down the progress of the project; Intensified market competition, etc
