The growth rate rebounded sharply in the third quarter.
In the third quarter of 2021, the company realized income of 603 million yuan (+ 44.97%), net profit of-21 million yuan (+ 55.77%), and non-return net profit of-29 million yuan (+ 51.47%).
In the third quarter alone, the company realized income of 308 million yuan (+ 59.58%), net profit of 77 million yuan (+ 508.26%), and non-return net profit of 71 million yuan (+ 1579.32%).
Compared with the first half of the year, the company's growth rate rebounded sharply.
The gross profit margin continues to rise, and the improvement of the sales system has achieved initial results.
The company's gross profit margin reached 72.34% in the third quarter, only 56.98% in the first quarter, but 77.02% in the third quarter. Gross profit margin rose by 20 percentage points in the third quarter, further confirming the quality of growth. The rapid growth of revenue is mainly due to the continuous improvement of the company's management and sales lines, good order delivery, iterative upgrading of hardware products and continuously enhanced solution capabilities to improve the overall competitiveness of the market. new sales staff and "3D interlock" organization upgrade gradually release performance.
Further upgrade of products and channels, acquisition of FPGA technology further, the company released A-series intelligent next-generation firewall, the performance of multiple business modules has been greatly improved, and the power consumption can be reduced by up to 30%. 1U high design saves at least 50% of space. Combined with the continuous promotion of the company's channels, the interlocking mechanism of "sales region + industry customers + product business" is gradually mature, and cost-effective products are expected to open the market quickly. At the same time, the company purchased the "hardware firewall equipment express forwarding system V1.0" software and all the intellectual property rights related to the software owned by Sanjiang Cinda for 14 million yuan. The FPGA technology can improve the number of ports, forwarding performance and traffic identification performance of the product without increasing the hardware cost of the whole machine, thus improving the performance-to-price ratio of the next generation firewall. The technology has been in the process of testing with the company's products, and when mature, it is expected to be transformed into a lower-cost ASIC chip and become a product model similar to Fortinet.
Risk hints: policies such as waiting for insurance 2.0 are not as expected; competition in the industry is intensified; and the impact of the epidemic is intensified.
Investment advice: maintain a "buy" rating.
Based on the sharp rebound in growth in the third quarter, raise the profit forecast. The forecast income for 2021-2023 is 1.586 billion yuan from 973 Placement 12.55 Placement to 1.953 billion Yuan from 1,439 Plus, with a growth rate of 34 percent, 29 percent and 26 percent, with a net profit of 0.92 Placement 1.26 Plus 1.71 million. Maintain a "buy" rating
