The company showed a positive reversal in 2021, with revenue growth exceeding 50 per cent in the first quarter of 2022. In 2021, the company realized income of 1.027 billion yuan (+ 41.57%), net profit of 76 million yuan (+ 25.39%), and non-return net profit of 54 million yuan (+ 41.68%). If the influence of share payment is excluded, the net profit of the company is 95 million yuan (+ 56.18%). Since the second half of 21 years, the internal mechanism, product upgrading and solutions have gradually landed, showing an obvious reversal trend as a whole. 2022Q1, the company realized income of 145 million yuan (+ 52.97%), net profit of-72 million yuan (loss reduction of 14.71%), and non-mother net profit of-76 million yuan (loss reduction of 10.56%).
The growth rate of self-owned safety products is faster, and the share of the financial industry has further increased. From a product point of view, the revenue of the company's own security products is 972 million yuan (+ 46.36%), and the integrated business is 45 million yuan (- 17.08%), including 757 million yuan for border security products (+ 41.35%), 52 million yuan for cloud security (+ 12.06%), and 209 million yuan for other security products (+ 52.22%). At the same time, the company is also increasing investment in overseas markets, with 21-year revenue reaching 51 million yuan (+ 100%). Overseas market is also one of the current important strategies of the company. The company further optimizes the three-dimensional interlock mechanism of "industry expansion + regions and channels + product business", and determines the development goals of key industries represented by finance, operators, Internet, health care and education. On the basis of border security competitive advantage, the company has gradually expanded and infiltrated into security services, application delivery, situational awareness, Xinchuang and other product business lines. The financial industry has an income of 255 million yuan (+ 51.11%) in 2021.
Increase the gross profit margin and increase the input of personnel and expenses. In 21 years, the company upgraded the original hardware platform and launched A series of cost-effective products. The gross profit margin of its own safety products was further improved, and the company's gross profit margin was 73.25% (+ 4.18pct). In 2021, the company increased recruitment, with a total staff of 1808 (+ 33.83%), including 487 pure sales positions (+ 42.82%) and 611 R & D personnel (+ 25%), of which 36.5% had master's degree or above. Therefore, in terms of expense rate, the sales expense rate in 2021 is 33.58% (+ 2.95pct), the management expense rate is 6.59% (+ 0.88pct), and the R & D expense rate is 29.14% (- 0.12pct).
Financial innovation is expected to benefit, and the security chip strategy is worth looking forward to. The company has obvious advantages in the high-end firewall market; in 2021, it also became the first domestic manufacturer to enter the Gartner Challenger quadrant. Finance is still the company's largest industry, and the company is expected to fully benefit from the development of financial innovation. The company is also actively promoting the security chip strategy, introducing FPGA modules with forwarding and acceleration functions into the hardware system, significantly enhancing the competitiveness of the company's high-end hardware systems and laying the foundation for further increasing market share; in the future, it is expected to follow Fortinet as an example and further land to ASIC.
Risk tips: the epidemic repeatedly affects the normal business rhythm of the company, the intensification of industry competition and so on.
Investment advice: maintain a buy rating. It is estimated that the operating income from 2022 to 2024 will be 14.18 won 1.915 won 2.470 billion yuan, with a growth rate of 38%, 35% and 29%, respectively. The net profit from the home will be 1.30 won 2.06 trillion yuan, and the corresponding PE will be times that of 24-15-11, maintaining the "Buy" rating.
