\u3000\u3 Guocheng Mining Co.Ltd(000688) 201 Beijing Infosec Technologies Co.Ltd(688201) )
Key investment points
Event: on April 29, Beijing Infosec Technologies Co.Ltd(688201) released the Q1 performance report of 2022. In the first quarter of 2022, the company achieved an operating income of 640129 million yuan, a year-on-year increase of 31.53%, a net profit attributable to the parent of -1.565 million yuan and a basic earnings per share of -0.0168 yuan.
Revenue growth was steady and market development achieved remarkable results. In the first quarter of 2012, the company achieved a revenue of 640129 million yuan, a year-on-year increase of 31.53%, slightly exceeding the consensus expectation of the market. The company continued to optimize its product structure and continue to strengthen the research and development of password security products and network security products. We will continue to base ourselves on the financial field, continue to explore new customers from the government and enterprises, and steadily increase our sales revenue.
The product structure was optimized and the profit margin increased steadily. In the first quarter of 2012, the company's net profit attributable to the parent company lost 1.565 million yuan, compared with 258100 yuan in the same period last year, mainly due to the impact of the epidemic, the slowdown in the year-on-year growth of some accounts receivable and the delay in the collection and refund of value-added tax at the end of 2021 (approved 6.9265 million yuan). Net profit after deduction of non return to parent improved year-on-year, with an increase of about 34%. The gross profit margin increased from - 35.43% in the same period last year to - 10.45%, narrowing by nearly 25 PCT year-on-year. Thanks to the further improvement of the degree of productization, the optimization of product structure and the smooth expansion of high gross profit businesses such as new safety products, the gross profit level in the first quarter was improved as a whole. At the same time, the company's sales expense rate was 26.12%, a decrease of 10.8 PCT compared with the same period last year, mainly due to the improvement of sales network efficiency, the rapid recognition of revenue by some compliance customers, and the gradual reduction of the cost of expanding a single customer.
Continue to increase R & D investment and consolidate the leading position of technology. In the first quarter of 2002, the company's R & D investment reached 262355 million yuan, a year-on-year increase of 3.0626 million yuan, an increase of 13.22%. At the stage of multiple repeated outbreaks and significant downward pressure on China's economy, the company adheres to R & D investment, consolidates technical barriers and continues to improve its core competitiveness.
The popularity of digital RMB will not decrease, and the company will continue to benefit. Digital RMB encryption technology runs through the whole process of digital RMB transaction and is the key foundation of digital RMB construction. As a leading enterprise in China's commercial password industry, the company's core password technology products are closely related to digital RMB, and won many digital RMB related projects. With the addition of 11 pilot cities in the third batch and the scenes of the Asian Games, the promotion and landing process of digital RMB continues to accelerate, and the company is expected to continue to benefit.
The digital transformation of the whole industry has accelerated, and the field of information security will continue to grow at a high speed. The 14th five year plan for the development of digital economy proposes to achieve the goal that the added value of the core industries of digital economy will account for 10% of GDP by 2025, and promote the development of digital economy to the height of national strategy. With the emergence of a large number of new applications and new scenarios, the demand for information security has increased in large quantities. As a leading enterprise in the financial field, the company has achieved remarkable results in expanding its leading customers in government, enterprises and industries in recent years, With the further improvement of the company's degree of productization and the concerted efforts of multiple product lines, it is expected to realize the full chain coverage of information security products. On the whole, the company will continue to maintain high growth.
Investment suggestion: we maintain the previous profit forecast of the company. The operating revenue of the company from 2022 to 2024 is RMB 729 / 965 / 1304 million respectively, and the net profit attributable to the parent company is RMB 190 / 253 / 375 million respectively. The PE multiples of the company's current share price to the predicted EPS from 2022 to 2024 are 24.3 / 18.3 / 12.3 times respectively. Referring to the valuation of comparable companies, the current valuation of the company is lower than the industry average. Considering the high growth brought by the continuous prosperity of the industry, Maintain the "buy" rating.
Risk tips: the risk of covid-19 epidemic spreading continuously, the risk that the product iteration cannot meet the needs of market development, the risk of goodwill impairment, the risk that the business expansion is less than expected, the risk of market space measurement deviation, and the risk that the public data used in the research report may not be updated in time or after the information.
