Profits for the whole year maintained rapid growth, and structural optimization promoted a steady increase in gross interest rates. Regulations on the Administration of Commercial passwords
It is expected to land this year, promoting the industry to enter an era of strong compliance, and is expected to fully benefit from the high economic development of the industry and maintain a "highly recommended" investment rating.
Event: according to the company's 2022 annual report, the company's operating income in 2022 was 340 million yuan, an increase of 25.69% over the same period last year; its net profit was 107 million yuan, up 43.52% over the same period last year; and 99 million yuan was deducted from its non-return net profit, an increase of 37.12% over the same period last year.
Profits maintain rapid growth, structural optimization and profitability continue to improve. The company's Q4 revenue in a single quarter was 168 million yuan, up 25.59% over the same period last year; the net profit returned to the mother was 77 million yuan, up 34.16% over the same period last year; and the non-return net profit was 75 million yuan, an increase of 31.78% over the same period last year. The annual gross profit margin is 75.47%, an increase of 1.85pct compared with 21 years, mainly due to the significant decrease in the proportion of cipher card business with lower gross profit margin, the significant increase in the proportion of higher password system, and the continuous improvement of revenue structure. Among them, the annual revenue of the password board was 46 million yuan, down 40.22% from the same period last year, the proportion decreased from 28.49% to 13.55%; the revenue from the whole password machine was 128 million yuan, up 7.85% from the same period last year, and the proportion decreased from 44.04% to 37.79%; the revenue from the password system was 143 million yuan, an increase of 143.69% over the same period last year, and the proportion increased from 21.72% to 42.11%. High investment in R & D was maintained, and sales and management expenses were actively controlled, of which sales expenses increased by 24.97%, management expenses increased by 12.45%, and R & D expenses increased by 35.22%.
The net operating cash flow in 2022 is-6.0048 million yuan, compared with 30 million yuan in the same period last year. The main factors are: 1) the proportion of password system has increased significantly in 2022, and the credit account period is longer than that of password board card, so the progress of sales payback is slower than that in 2021; 2) the company will increase its R & D investment and technical support capacity in 2022, actively introduce all kinds of talents, and pay more employees than the previous period. 3) affected by the overall market environment in 2022, customer repayment is slow, which has a certain impact on the company's payback progress.
Commercial secrets regulations are expected to be settled this year, promoting the development of the industry. The regulations on the Administration of Commercial passwords has been incorporated into the annual legislative plan of the State Council for two consecutive years since 2020 and is expected to be formally promulgated within this year. Regulations
As a supplement to the Code Law, key industries and systems at or above the third level of protection should be required to implement password protection, and secret reviews should be carried out every year, and failure to implement them in accordance with the requirements will be punished. We believe that the regulations are the key to the implementation of supervision and enforcement. With the formal promulgation of the regulations, Merchants will enter an era of strong compliance. "promoting construction by evaluation" with secret comments as the core will become an important driving force, and the development of the industry is expected to enter the fast lane. The company has a sound layout in the industrial chain, and its products are oriented to manufacturers such as network security and password services. at the same time, it actively opens up major customers in the industry and is widely used in downstream key industries, with good growth sustainability and stability. It is expected to benefit from the high prosperity of the password industry.
Maintain the "highly recommended" investment rating. With the continuous improvement of industry policies, it is expected to maintain high prosperity development, the company card position in the middle and upper reaches, is expected to fully benefit from the high prosperity development. It is estimated that the 23-25 net profit of homing will be RMB 1.54 trillion, RMB 2.10 billion and RMB 277 million, maintaining the "highly recommended" investment rating.
Risk tips: policy landing is less than expected, industry competition intensifies, costs rise.