\u3000\u3000 Dbappsecurity Co.Ltd(688023) (688023)
Event: the company released the performance forecast for 2021, and achieved a revenue of RMB 1.812 billion to RMB 1.839 billion in 2021, with a year-on-year increase of 37% – 39%; The net profit is expected to be 10-15 million yuan, a year-on-year decrease of 88.82% – 92.54%.
Q4 revenue growth increased month on month. In the single quarter of Q4, the revenue was 947-973 million yuan, with a year-on-year increase of 42.87% – 46.86%, and the growth rate increased month on month (the year-on-year growth rates of Q1, Q2 and Q3 were 40.14%, 44.28% and 31.11% respectively). In 2021, the revenue increased rapidly, and the gross profit margin increased steadily compared with the first three quarters. In terms of products, the revenue scale of cloud security platform and big data security platform continues to grow. Although the revenue proportion of new products such as data security and Xinchuang cloud security is not high, it shows a high-speed growth trend; In terms of services, the revenue of security services increased rapidly, and the scale of SaaS increased steadily; In terms of industry customers, in addition to traditional advantageous industries, the company’s market share in finance, operators, medical treatment, education and enterprises shows a further upward trend.
Increasing investment in R & D and sales dragged down annual profits, and Q4 ushered in an inflection point. In the single quarter of Q4, the net profit attributable to the parent company was RMB 278-283 million, with a year-on-year increase of 65.85% – 68.83%, and the growth rate improved significantly month on month (the year-on-year growth rates of Q1, Q2 and Q3 were 45.43%, – 192.18% and – 697.29% respectively). The main factors for the large change in the annual net profit in 2021 are: (1) with the successive introduction of relevant laws and regulations such as the data security law, the personal information protection law and the increasingly severe situation of network related crimes, the company has accelerated the market promotion of new strategic directions such as data security, network related crimes, information innovation products, new generation intelligent gateway products and Internet of vehicles security Investment in technology R & D and management optimization. During the reporting period, the company increased R & D investment, and the total R & D expenses and sales expenses were about 1.168-1.198 billion yuan, with a year-on-year increase of about 55.52% – 59.51%. (2) In 2021, the company’s share based payment expense was about 91 million yuan, a significant increase year-on-year.
Multi field accelerated promotion is expected to usher in a performance release period this year. (1) In terms of data security, we continued to promote the data security technical framework “Cape”, developed more than 10 data security series products, and improved the technical capability and scenario applicability of data safety island products as a whole. (2) In terms of network related crimes, it has realized the monitoring, early warning, prevention and strike support capabilities of various network black products, including anti telecom network fraud. (3) We continued to increase the research and development of Xinchuang products and achieved remarkable results, and the market share expanded rapidly. The multi cloud, multi-core, integrated and diversified management security operation platform has been implemented in Shanxi, Guangxi, Hangzhou and other provinces and cities; Situational awareness products are fully compatible with Kunpeng, Haiguang and Feiteng specifications, and continue to implement projects in the public security, online information and financial industries. (4) The new generation of intelligent gateway products have achieved a significant breakthrough and improvement in basic capabilities such as basic forwarding surface performance, multi platform environment adaptation, encrypted traffic identification and security detection capabilities. (5) In the field of Internet of vehicles security, we mainly increase investment in the research capacity of Internet of vehicles security testing, interpretation of safety regulations and standards, safety testing, safety protection products, safety laboratory construction, etc. It realizes the construction of safety test standard system based on the requirements of safety regulations and standards, and the development and application of safety test products and protection products. In 2021, the new strategic direction of the company is in the investment stage, and the relevant investment benefits have not been reflected in the current period. With the continuous maturity of new product technology, the company is expected to enter the release period from the investment period. The new direction will gradually form a scale effect and continue to create new profit growth points for the company.
Investment suggestion: at present, key tracks such as big data security, cloud security and Internet of things security are still growing at a high speed. The company maintains a leading edge in key tracks, and security service business is also the focus of the company. It is expected to maintain a high growth trend. We estimate that the company’s operating revenue from 2021 to 2023 will be RMB 1.891 billion, RMB 2.583 billion and RMB 3.616 billion respectively, the net profit attributable to the parent company will be RMB 12 million, RMB 247 million and RMB 373 million respectively, and the EPS will be RMB 0.15, RMB 3.21 and RMB 4.77 respectively, maintaining the “buy” rating.
Risk tip: new business expansion is not as expected; The implementation of the policy was less than expected.
