Main points of investment

On Tuesday, October 11, an inquiry was made by Kirin Xinan, a listed company of Science and Technology Innovation Board.

Kirin Principal (688152): the company is mainly engaged in operating system product research and development and technical services, and based on operating system technology innovation to develop information security, cloud computing and other products and services business. From 2019 to 2021, the company achieved operating income of 141 million yuan / 231 million yuan / 338 million yuan, YOY of 77.35%, 63.64%, 46.17%, and a compound annual growth rate of 61.88%. The net profit of homing was 20 million yuan / 99 million yuan / 112 million yuan, and the YOY was 85.04%, 386.37%, 12.78%, respectively, and the annual compound growth rate of three-year net profit was 116.51%. During the latest reporting period, 2022H1 achieved an operating income of 94 million yuan, an increase of 38.17% over the same period last year, and a net profit of 18 million yuan, an increase of 313.75% over the same period last year. According to the preliminary forecast, the company expects the net profit attributable to the owner of the parent company from January to September 2022 to be 37 million yuan to 78 million yuan, a change of-14.22% to 80.84% over the same period last year.

Investment highlights: 1, the company is the first domestic operating system A-share listed company; and based on the operating system to develop information security, cloud computing two major businesses, is now a comprehensive product integration solution provider. Driven by events such as Windows7 and CentOS stopping maintenance, as well as the complex international political environment, the localization of information systems such as computer software systems and information security is urgently needed in the future. The company is an early domestic enterprise to develop a commercial distribution version of the operating system based on open source Linux technology, and it is the first secure operating system in China that has passed the level IV certification of the information security product testing center of the Ministry of Public Security. At present, it has realized the support for Intel, AMD and other international commercial CPU and domestic independent CPU, such as Kunpeng, Feiteng, Longxin, Zhaixin, Haiguang, Shenwei and so on. On the basis of operating system products, the company has developed information security products based on data storage security, as well as further developed desktop virtualization, server virtualization and other technologies, realizing the extension of the field of cloud computing, forming a "operating system-cloud computing-information security" trinity product system, which may better benefit from domestic alternatives in the future. 2. The company has a good first-mover advantage in the national defense, power and other industries; with the gradual progress of the construction of cloud platforms in the above areas, the company's cloud computing business is expected to benefit. As early as 2011, the company set up a special R & D team to tackle key problems in the power field. The company's products are the representative of the domestic operating system used in the State Grid and Southern Power Grid dispatching system earlier. At present, it has become the mainstream domestic operating system in the power industry. And since its establishment, the company has been serving the field of national defense, undertaking many information construction projects of national defense units, supporting tasks of model equipment entrusted by national defense units and technical pre-research projects. the products have been widely used and deployed in the fields of national defense, such as security office, education and training, command training, equipment arrangement and so on. During the reporting period, with the gradual progress of the construction of cloud platforms in the fields of national defense and electric power, the company's cloud computing business achieved good development, with revenue growing by 235.13% and 131.39% respectively in 2020 and 2021 compared with the same period last year. In the future, with the gradual progress of cloud computing construction in the above industries, the company's cloud computing business is expected to benefit better.

Compared with the listed companies in the same industry: the company focuses on the provision of operating systems, information security and cloud computing products; according to the similarity of the business, Shenxin, Weststone and Zuojiang Technology are comparable listed companies. however, we tend to think that the reference of the above-mentioned companies is poor. According to the above comparable companies, the average income of the same industry in 2021 is 3.237 billion yuan, and the gross profit margin of sales is 59.36%. Relatively speaking, the revenue scale of the company is lower than the industry average, but the gross profit margin is higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.