Events:
The company realized operating income of 177 million yuan, an increase of 58.52% over the same period last year, and realized net profit belonging to shareholders of listed companies-25 million.
With the rapid growth of performance, Xinchuang is expected to gradually increase its volume.
The company achieved operating income of 177 million yuan, an increase of 58.52% over the same period last year. We believe that the rapid growth of the company's business is mainly due to the volume of PKI-related products. Gross profit margin increased by 12.17% compared with the same period last year. We believe that the major change in gross profit margin is mainly due to the normal fluctuations brought about by the project-based business model of the company and the changes in software and hardware. In terms of expense rate, the sales expense rate and R & D fee rate decreased by 3.32% and 3.95% respectively, and the management expense rate increased by 5.65%.
Half-yearly reported contract liabilities of 251 million, an increase of 32.22% year-on-year at the end of the year. We believe that for the whole year, Xinchuang-related business is expected to gradually land, and the company's performance is expected to continue to grow at a high speed.
Maintain the investment in technology research and development, and constantly improve the ability of innovation
The company continues to maintain investment in technological research and development, and constantly improve the ability of scientific and technological innovation. The R & D expenditure in the first half of the year was 49.6589 million yuan, an increase of 39.44% over the same period last year. The R & D progress is mainly reflected in the upgrading of platform-level products such as PKI infrastructure and IAM identity control system, providing multi-tenant SaaS security services for group-level and city-level IT environments. And in the field of zero-trust security, further enrich the product system and solutions. At the same time, in the field of video security, a password module suitable for video surveillance front-end equipment is developed based on domestic commercial password technology, which improves the supply capacity of video surveillance security products.
Xinchuang driven performance is expected to grow rapidly in the future, zero trust to promote medium-and long-term business model change the company year-round in the party, government, military enterprises and other areas to promote information security products, has a rich customer trust base.
It is expected that the rapid growth of performance driven by Xinchuang in recent years is a high probability event. At the same time, the company continues to strengthen the expansion of zero-trust field solutions and promote the implementation of zero-trust pilot projects. Looking forward to the general trend of zero-trust industry in the next three to five years, we are optimistic that the company will become China's Okta and realize the change of business model from products to SaaS.
Investment advice: taking into account the time for Xinchuang to recognize revenue on arrival in the future, and the rapid expansion of the company's staff this year, we maintain our profit forecast of 1.77 billion for 21-23, with a net profit of 0.91 trillion and 215 million for home. Maintain the "overweight" rating.
Risk hints: the process of domestic substitution is lower than expected, the development of zero-trust industry is lower than expected, and market competition intensifies.
