Revenue maintained a growth rate of more than 40% throughout the year, and gross margin is expected to continue to increase in 2021, the company achieved revenue of 1,027 million yuan (+41.57%), net profit returned to the mother was 75 million yuan (+25.22%), and net profit after deducting non-return to the mother was 54 million yuan (+42.30%). Looking at Q4 alone, it achieved revenue of 424 million yuan (+36.77%), and maintained a high growth rate after reaching 60% growth in Q3. Due to the impact of equity payments, the impact on the company's net profit was about 16.86 million yuan. Excluding this influence, the net profit of the company's return to the mother reached 92.28 million yuan in 2021, an increase of 52.36% over the previous year. The company's gross margin picked up quarterly in the first three quarters and is expected to remain high throughout the year.
The three-dimensional interlock reform has already paid off. 2021 became an inflection point in development. In 2021, the company implemented “three-dimensional interlock” to achieve binding collaboration between business lines, sales lines, and industry lines, and further increased investment in sales and R&D. Overall expenses have maintained a high growth rate, and good results have also been achieved. The company has continued to expand its product line in recent years. Beginning in '21, solution capabilities were significantly improved. Combined with earlier growth in personnel, the efficiency was gradually improved. After the internal incentive mechanism was rationalized, the company's growth momentum was restored.
Continuing to increase investment and further product upgrades, Financial Xinchuang is expected to benefit companies that will continue to increase R&D investment in 2021. The firewall is also the first time that it has entered the Gartner challenger quadrant. At the same time, the company has also launched many innovative products, such as container safety, XDR solutions, university safety training platforms, etc. In the high-end market, the company has advantages. Especially in the context of financial innovation, the company's high-performance firewall and other products are expected to fully benefit. The company launched A series products in mid-2021, continuously improving the cost performance ratio of products and increasing penetration in the middle and low end markets. The company deployed FPGA technology to improve the number of ports, forwarding performance, and traffic recognition performance of the product without increasing the hardware cost of the whole machine, thereby improving the overall cost performance of next-generation firewalls. At the same time, the company further converted to ASIC chips. This technology has high barriers. Only Fortinet is the most proficient in the world. The company's founding team and Fortinet are expected to be successfully replicated.
Risk warning: policies such as waiting for insurance 2.0 fell short of expectations; industry competition intensified; the impact of the epidemic intensified.
Investment advice: Maintain a “buy” rating.
Based on the performance report, revenue for 2021-2023 is predicted to be 1,028/1442/1,957 million yuan, a growth rate of 42%/40%/36%, and the net profit of the mother is 0.75/130/212 million yuan. Maintain a “buy” rating.
