\u3000\u3 China Vanke Co.Ltd(000002) 212 Topsec Technologies Group Inc(002212) )
Event: the company released 2021 annual report and 2022q1 quarterly report. In 2021, the company achieved revenue of RMB 3.352 billion (- 41.2%), net profit attributable to parent company of RMB 230 million (- 42.5%), and deduction of non net profit of RMB 154 million (- 65.6%). In 2022q1, the company achieved a revenue of 378 million yuan (+ 42.8%), a net profit attributable to the parent company of - 65 million yuan (+ 32.14%), and a net profit deducted of - 71 million yuan (+ 27.04%).
The network security business grew rapidly, and the amount of new orders increased significantly. After the company sold its cable business in September 2020, its main business focused on the network security industry (the revenue in 2021 accounted for 99.91%). In 2021, the company's network security business realized a revenue of 3.352 billion yuan (+ 18.3%), and the amount of new orders increased by 48.1% year-on-year. In 2021, the proportion of basic security products in the network security business was the highest (67.2%), the revenue was 2.252 billion yuan (+ 14.6%), and the gross profit margin was 56.2%; The revenue of big data and situational awareness products and services was 389 million yuan (+ 20.8%), with a gross profit margin of 81.2%; The revenue from basic security services was 431 million yuan (+ 19.3%), with a gross profit margin of 62.7%; The gross profit margin of cloud computing products and services was 56.4 billion yuan (+ 1.56%).
The company's forward-looking layout of new scenarios is expected to become a new growth engine of the company in the future. The company continues to invest in new scenarios such as basic security, data security, big data and situational awareness, cloud computing and cloud security, and the new scenario business is developing rapidly. In 2021, the R & D cost was 803 million yuan (+ 47.4%), which was mainly used for the consolidation of basic network security business and the layout of emerging scenario business; 2022q1 R & D cost is 203 million yuan (+ 37.9%). In 2021, the company's data security revenue was 201 million yuan (+ 192.7%); Industrial Internet revenue increased by 689.8% year-on-year; The localization business income was 560 million yuan, a year-on-year increase of nearly 10 times. In 2022q1, the company's operating revenue was 378 million yuan (+ 42.8%), mainly benefiting from the company's layout in the three fields of network security, big data and cloud computing.
The company accelerated its marketing layout and made new breakthroughs in key industries. In 2021, the company accelerated the marketing layout of the whole industry and made new breakthroughs in key industries. Its operating revenue increased by 91.3%, 69.9%, 69.3%, 61.6%, 59.6% and 45.7% respectively in the government, finance, medical treatment, politics and law, operators and education industries.
Profit forecast and investment suggestions
By adjusting the revenue growth rate, gross profit margin and expense rate, we predict that the company's EPS from 2022 to 2024 will be 0.39/0.50/0.62 yuan respectively (the original forecast was 0.79/1.04 yuan for 22-23 years). Considering that the company's revenue in 21 years is lower than expected and the impact of rising raw material costs, the expectation of revenue and gross profit margin in 22 years is lowered. With reference to the 22 years 36 times PE given to the company by comparable companies, the corresponding target price is 14.04 yuan, and the purchase rating is maintained.
Risk tips
Network security market competition intensifies; The progress of safety information innovation is less than expected; The supply cycle of raw materials is prolonged.
