High revenue growth in the first three quarters, maintaining buy rating
The company's revenue in the first three quarters was 466 million yuan, an increase of 61.80% over the same period last year, of which 22Q3 revenue was 170 million yuan, an increase of 53.18% over the same period last year, mainly due to the continuous expansion of the company's business scene; the company's net profit loss in the first three quarters was 51 million yuan, which increased by 121.57% 22Q3 compared with the same period last year, a decrease of 223.35%, mainly due to the increase in personnel costs caused by the company's business expansion.
We believe that thanks to the acceleration of Xinchuang security and the promotion of the company's pan-password business, the company's products are expected to achieve continuous expansion in financial, medical and other new areas in the future. To maintain the profit forecast, it is estimated that the EPS from 2022 to 2024 will be 0.35pm 0.49max 0.68RMB, comparable to the company's average valuation (Wind) 22e 58.5xPE, given 22e 58.5xPE, with a target price of 20.48RMB (previous value: 18.69RMB) to maintain "buy".
The effect of cost control is obvious, and the product research and development meets the needs of multi-business.
Affected by the continued business expansion, the company's sales expenses, management expenses and R & D expenses increased by 26.53%, 18.45% and 5.97% respectively compared with the same period last year, which is lower than the revenue growth rate (61.8%). In the first three quarters of the company, the sales expense rate / management expense rate / R & D expense rate was 13.39%, 26.17% and 15.24% respectively, which decreased by 3.72pct, 9.78pct and 8.12pct, respectively. The company attaches great importance to self-research and controllability of key technologies, and actively promotes the technological upgrading of multi-service products such as identity security, password service, video security, vehicle network security, etc., taking car network security products as an example, at present, the company's password products have fully covered the three areas of cloud, communication and car body, effectively solving the security problems such as vehicle cloud authentication and authority control. Set up a vehicle network security trust system in line with the Ministry of Industry and Information Technology, IEEE1609.2 and other domestic and foreign standards.
With the acceleration of the comprehensive promotion of Xinchuang, the upgrading of the security system is expected to follow up with the acceleration of the party and government and the rapid start of the industry, the construction of the security system of the information system will also be integrated with all links again, and the security system will be upgraded synchronously with the update of software and hardware. The autonomous control of network security, data security, password management and other areas is expected to accelerate the release of downstream customer demand. As the leader of domestic public key infrastructure PKI (Public Key Infrastructure), the company always attaches great importance to the independent control of technology, actively promotes the transformation business of national secret (domestic password), and has taken the lead in realizing the landing of business in banking, securities, insurance and other financial fields. We believe that the full launch of industry Xinchuang will lead to the rapid growth of Xinchuang security business, and the company is expected to continue to speed up the expansion of other industries by virtue of its superior experience in financial security, and business development will further lead to high revenue growth.
The development of business scenarios is effective, and the performance is expected to continue to increase.
We believe that based on the deep accumulation in the field of cryptographic technology represented by PKI, the company's business scenarios are expected to achieve continuous expansion in finance, medical care, transportation, operators, emergency and other fields, and the continuous development of downstream business scenarios is expected to drive the company's performance to maintain rapid growth. It is estimated that the company's income from 2022 to 2024 will be 858 million yuan, 11.61 billion yuan, and its net profit will be 0.81 billion yuan.
Risk hint: the information security policy is not as expected, and the security business is not as expected.
