\u3000\u3000 Nsfocus Technologies Group Co.Ltd(300369) (300369)
Event:
The company issued the annual performance forecast for 2021 on the afternoon of January 23, 2022.
Comments:
Continue to strengthen R & D and marketing investment, and the revenue is expected to increase by 28.11% – 30.84% year-on-year in 2021
In 2021, the company expects to realize an operating revenue of 2.575-2.630 billion yuan, with a year-on-year increase of 28.11% – 30.84%; The net profit attributable to the parent company is expected to be 330-360 million yuan, with a year-on-year increase of 9.59% – 19.55%; It is expected to realize a net profit of 213-243 million yuan, a year-on-year decrease of 5.87% – 17.49%. The reasons for performance changes include: 1) focusing on the overall strategic objectives, the company continued to strengthen the organization construction close to customers and the construction of ecological partner system, increased the R & D investment and marketing investment of products and solutions, and achieved rapid growth in revenue scale; 2) The company increased personnel investment and launched employee stock ownership plan and restricted stock incentive plan. The share based payment expense confirmed during the reporting period was about 53 million yuan, compared with 7.1219 million yuan in the same period of last year; 3) It is estimated that the impact of non recurring profits and losses on the net profit attributable to the parent company in 2021 is about 117 million yuan, mainly including changes in the fair value of equity investment enterprises, financial investment income and government subsidies; The impact of non recurring profit and loss on net profit in 2020 is 42.9661 million yuan.
Obtain the first-class certification qualification of national information security service security operation, and improve the core competitiveness
According to the information disclosed recently by WeChat official account, the company passed the China Information Security Evaluation Center audit in January 2022 and obtained the first class certification qualification of the national information security service security operation class, which indicates that the company’s strength and professional degree in network security operation have been recognized by the authoritative organization. At present, the company has established urban security operation centers in ten cities across the country, and the special operation service BG provides organizational guarantee for the delivery of operation capacity, so as to ensure that the security operation service is closer to customers and the network threat response work is faster and more effective.
The new version of the network security review measures was officially released, and the network security industry continued to boom
The data security law of the people’s Republic of China, the regulations on the security protection of key information infrastructure, the provisions on the management of security vulnerabilities of network products and other policies have been officially implemented. The new version of the measures for network security review jointly issued by the state Internet information office and other 13 departments will go into effect as of February 15, 2022, It defines the direction for the development of network security industry. According to IDC global network security expenditure guide, 2021v2, released by IDC in July 2021, the investment scale of China’s network security market will reach US $9.78 billion in 2021 and is expected to increase to US $18.79 billion in 2025. The compound annual growth rate in the forecast period 2020-2025 is 17.9%, and the growth rate continues to lead the global network security market. Relying on the industry-leading technical advantages and differentiated service capabilities, the company is expected to lead the development of the industry.
Investment advice and profit forecast
With the promotion of Digital China strategy, the company continues to innovate network security products and solutions. The joint expansion mode of ” Nsfocus Technologies Group Co.Ltd(300369) + partners” has achieved remarkable results and has broad growth space in the future. Referring to the annual performance forecast for 2021, the company slightly adjusted the operating revenue forecast of the company from 2021 to 2023 to RMB 2.605, 3.324 and 4.127 billion, adjusted the net profit attributable to the parent company to RMB 348, 475 and 632 million, and the EPS was RMB 0.44, 0.59 and 0.79/share, corresponding to 33.58, 24.61 and 18.49 times of PE. In the past three years, the company’s PE has mainly operated between 35-85 times, giving the company 45 times the target PE in 2022, with the corresponding target price of 26.55 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; Loss of core personnel; Risks of overseas market expansion; The promotion of channel strategy was less than expected.
