Event: the company issued a half-year performance forecast for 2022, the company expects H1 return net profit of 11.1 million yuan in 2022, a loss of 42.04 million yuan in the same period in 2021, deducting non-net profit of 40-2.9 million yuan, and a loss of 43.66 million yuan in the same period in 2021, exceeding market expectations.
Main points of investment
2022H1 revenue growth exceeded 50%, performance exceeded expectations: the company expects 2022H1 revenue growth of more than 50% year-on-year, net profit to achieve a turnaround, exceeding market expectations. We believe that 1) the company closely follows the new strategic plan, continuously increases R & D investment and key market development around the development orientation of "data intelligent security service provider with password as the core". Strengthen the application of passwords in e-government, new infrastructure, energy, transportation, Internet and other fields; secure instant messaging has been rapidly promoted in the large-scale application of the party and government and central enterprises, and the overall business quality has been rapidly improved. 2) the order of some Xinchuang and Shang Mi projects in 2021 will be delayed to the first half of 2022.
Create the first insurance service and make a major breakthrough: the company seizes the great opportunity of the digital transformation of digital government, digital economy, digital society and central enterprises, and actively participates in the construction of top-level standards for national and industry data security. build the ability of safe sharing and circulation system of data as a factor of production It was the first to create a personal information compliance service for Internet applications, signed a cooperation agreement of 120 million yuan with the game leader Century Huatong, and made a major breakthrough in the game industry. According to the clear provisions of the personal Information Security Protection Law of 2021, personal information processors who provide important Internet platform services, a large number of users and complex business types, an independent body mainly composed of external members shall be established to supervise the protection of personal information. The blue ocean market of personal information protection has been opened, and the company, as the Netan national team under CLP, is the first to break through the application scene and has a significant first-mover advantage.
Equity incentive is bound to core talent interests: in 2020, the company issued a restricted stock long-term incentive plan valid for 10 years, and in July 2022, it issued the second phase of the restricted stock long-term incentive plan (draft). It is proposed to grant 1090 million shares to employees, including senior managers, core technicians and key employees. It accounts for about 18% of the total number of 2496 people in the company on February 18, 2022, with a lock-up period of two years. Equity incentive is expected to closely bind the interests of employees with the performance of the company, retain core talents and fully stimulate the business vitality of the company.
Profit forecast and investment rating: we maintain the company's 2022-2024 EPS forecast of 0.38 PE 0.49 yuan 0.64 yuan, the current market capitalization corresponding to 2022-2024 PE is 123-93-72 times. As the national team of domestic data security, the company takes the lead in breaking the ice protection market by ploughing password technology, and will fully benefit from the landing of personal information protection and other related policies in the Internet and other industries, and is expected to continue to obtain resource docking and strong support from the group in the future. Maintain a "buy" rating.
Risk hint: the competition in the industry intensifies and the policy promotion is not as expected.