\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 68 Hangzhou Dptech Technologies Co.Ltd(300768) )
The performance grew steadily, and the shortage of chips led to a slowdown in revenue growth. In 2021, the company realized a revenue of 1.03 billion yuan (+ 15.59%), a net profit attributable to the parent company of 309 million yuan (+ 11.91%), and a net profit not attributable to the parent company of 295 million yuan (+ 14.44%). In terms of 21q4, the company realized a revenue of 288 million yuan (- 14.57%), a net profit attributable to the parent company of 105 million yuan (- 13.69%), and a net profit not attributable to the parent company of 102 million yuan (- 12.46%). In the first quarter of 2022, the company realized a revenue of 214 million yuan (+ 10.32%), and the net profit attributable to the parent company was 45 million yuan (- 2.40%), deducting the net profit not attributable to the parent company of 45 million yuan (- 1.83%). The decline of the company in the fourth quarter was mainly due to the delay of project delivery due to the shortage of chip supply. Combined with the continuous impact of the current epidemic, the short-term growth rate of the company slowed down and is expected to recover rapidly in the second half of the year.
The business quality maintained a high level in the industry, and the performance showed stable growth. In 2021, the company’s gross profit margin was 71.45%, with a year-on-year increase of 0.93pct; The net interest rate was 30.02%, which remained above 30% for three consecutive years. In terms of expense rate, in 2021, the company’s sales expense rate was 27.65% (+ 0.36pct), the management expense rate was 2.84% (- 0.20pct), and the R & D expense rate was 22.30% (+ 1.82pct). In 2021, the company’s net cash flow from operating activities was 298 million yuan, a slight increase over the same period, and various indicators remained healthy.
The government industry maintained high growth, and the trapped chips of operators declined. By industry, the revenue of government industry is 439 million yuan (+ 39.22%), that of public utilities is 189 million yuan (+ 20.52%), and that of operators is 248 million yuan (- 14.97%). Operators have always been the dominant field of the company, especially at the level of high-performance safety equipment. In recent years, a number of products of the company have been shortlisted among the three operators and ranked first in many bid sections. The decline of operators’ income in 2021 is mainly caused by the shortage of chips, which is expected to gradually improve in 2022. In terms of products, the company’s network security products revenue is 679 million yuan (+ 13.38%), basic network products revenue is 166 million yuan (+ 8.28%), application delivery products revenue is 136 million yuan (+ 26.60%), and service products revenue is 49 million yuan (+ 57.55%).
Security investment in the field of operators is expected to be strengthened, and application delivery will accelerate domestic substitution in the high-end market. The Ministry of industry and information technology proposed in the network security action plan 20212023 that the network security investment in key industries such as telecommunications accounts for 10% of the information investment. The company has won sufficient bids for operators in 2021, and the advantages are expected to be further revealed. In the field of application delivery, the high-end market has been dominated by F5 for many years. At present, the company has made continuous breakthroughs in the financial market. Its products are widely used in the data center of Bank Of Communications Co.Ltd(601328) head office, Industrial And Commercial Bank Of China Limited(601398) , Bank Of China Limited(601988) , Agricultural Bank Of China Limited(601288) and other projects. Recently, it has won the exclusive bid for China Life Insurance Company Limited(601628) SMIC load balancing equipment procurement project. With the gradual promotion of Xinchuang, the advantages of high-performance products are expected to help the company continue to grab high-end market share.
Risk tip: the epidemic situation repeatedly affects the normal operation rhythm of the company, and the industry competition intensifies.
Investment advice: maintain the “buy” rating. It is estimated that the operating revenue from 2022 to 2024 will be 12.88/16.21/19.88, with growth rates of 25% / 26% / 23% respectively, and the net profit attributable to the parent company will be RMB 365 / 449 / 547 million, corresponding to the current PE of 25 / 20 / 16 times, maintaining the “buy” rating.
