\u3000\u3000 Qi An Xin Technology Group Inc(688561) (688561)
The innovative network security leader with rapid development maintains the “buy” rating
Considering the continuous increase of the company’s investment and the impact of incentive expenses, we lowered the company’s net profit attributable to the parent company from 2021 to 2023 to -527 million, 108 million and 360 million yuan (originally predicted to be -409 million, 114 million and 410 million yuan), corresponding to EPS of -0.77, 0.16 and 0.53 yuan / share respectively. The current stock price corresponds to PE of -112.7, 548.9 and 164.9 times from 2021 to 2023. Considering the continuous consolidation of the company’s leading position in the market, Maintain the “buy” rating.
Revenue still maintained rapid growth, and the loss range narrowed after excluding the impact of incentive expenses
(1) the company released the performance forecast and expected to achieve an operating revenue of RMB 5.670-5.820 billion in 2021, with a year-on-year increase of 36.26% – 39.86%; Among them, Q4 is expected to achieve revenue of RMB 2.996-3.146 billion, with a year-on-year increase of 30.8% – 37.3%, which is in line with our previous expectations. (2) The company expects to realize the net profit attributable to the parent company, with a net profit of – 600 million to – 500 million yuan, and a year-on-year loss increase of 49.54% – 79.44%. In 2021, the company’s accrued employee share based payment expense increased by 256 million yuan compared with that in 2020. If this impact is considered, the loss range of the company’s net profit attributable to the parent company will be narrowed year-on-year.
High R & D investment lays the cornerstone, and the new track drives high growth
Using the “LEGO” thinking, the company has upgraded the R & D platforms of Kunpeng, Noah, rier and Zion Normal University, and built four R & D platforms of Chuantuo, Dayu, Xuanji and qianxingxin. The company continues to promote the R & D platform strategy, and comprehensively improves the standardization, modularization, modularization and performance of products. In addition, the technical competitiveness of the company’s products in the fields of data security and privacy protection, practical situational awareness, cloud security, terminal security, border security, security services and security operations continued to lead the whole industry. In the first three quarters of 2021, the average growth rate of the company’s revenue from new track security products and services exceeded 60%, And the revenue from new track products and services contributes more than 70% of the company’s operating revenue.
Make important breakthroughs in internationalization and open up new market space
The company has made breakthroughs in its internationalization strategy. In December 31, 2021, the official account of Qi An Xin Technology Group Inc(688561) announced that the company had won a total of 70 million yuan in international business, and the cooperation focused on APT monitoring. It shows that some of the company’s core products have begun to have international competitiveness, and the expansion of international business opens a new space for the development of the company.
Risk warning: market competition intensifies the risk; Continuous loss risk; Brain drain risk.
