Summary of events: the company recently released its H1 performance in 2021, with revenue of 844 million (YOY+94.8%), net profit of-42 million (YOY+68.3%), and non-return net profit of-44 million (YOY+67.1%).
Comments:
The performance is in line with the forecast, and the revenue doubling verifies that the operation continues to improve. The company's revenue and return net profit fell within the forecast range of the previous medium report, of which 21Q2 achieved revenue of 560 million (YOY+49.9%) and return to home net profit of 34 million (YOY+908%), which improved significantly quarter by quarter; H1 gross profit margin H1 was 37.3%, an increase of 2.7pct compared with the same period last year.
On the product structure side, the growth rate of chip module / machine system / integrated service is 52%, 366% and 64%, respectively, and the proportion of integrated services with low gross profit margin has decreased by nearly 10pct. The nearly double growth of revenue driven by market expansion and the increase of gross profit margin brought about by changes in products and services jointly verify that the company under the high growth of the network security industry continues to rise after the inflection point of operation.
The point of view is reiterated: the expansion of the data security market is obvious. In our previous report on "data security is expanding, security / operation / governance is out of the sheath", we clearly pointed out that "internal changes have taken place in the format of data security". In 2016-2021, big data's security CAGR was 34%, and the data security expansion is very obvious. According to the forecast of Sadie consultants, in the trillion-scale data industry, the data security industry is still in its infancy and will account for 5% to 10% of the total industry scale in the future.
The advantages of customers and products are obvious, and the development of data security business is expected to take the lead. (1) Market advantage: as an important part of China Network Security (a subsidiary of China Electric Power Group), the company has a leading advantage in traditional markets such as the government and the military, and has a strong customer base. (2) advantages of products and services:
The company's security chip, security password and system machine and other products with leading technical performance, product technology development has made important breakthroughs, such as identity authentication products to complete the support of Oauth2, CAS, RADIUS and other protocols. At present, the company focuses on the forward-looking layout of privacy computing to deal with data security challenges, and with the help of market and product advantages, it is expected to seize the first opportunity in the development of data security business.
Profit forecast and investment rating: we expect the company's net profit from 2021 to 2023 to be 2.2max 3.1 / 430 million yuan respectively, corresponding to EPS 0.26max 0.36max 0.51 yuan respectively. The corresponding PE value of the current stock price from 2021 to 2023 is 115RMB 81 times that of 160 Universe. Maintain a highly recommended rating.
Risk hint: the expansion of data security market is not as expected, and the expansion of products and services is not as expected.