At the end of April, the company released its 2022 annual report and 23Q1 performance report one after another. In 2022, the company achieved total operating income of 400 million yuan, an increase of 18.45% over the previous year; the net profit of the mother was 129 million yuan, an increase of 15.33% over the previous year; and the net profit of the mother deducted 112 million yuan, an increase of 28.00% over the previous year. In 23Q1, the company achieved operating income of 34 million yuan, an increase of 21.43% over the previous year; the net profit of the mother was 1.32 million yuan, and the net profit of the return mother was 4.09 million yuan, and the losses all narrowed year-on-year.
Operating system revenue is growing rapidly, and the role of ballast stone in the defense business has been further highlighted. Fluctuations in the external environment in 2022 caused some problems in the company's business operations, but the company responded positively and achieved steady growth in business performance. Under the collaborative development of the operating system, cloud computing and information security “trinity” business, the company's revenue from all business lines increased year-on-year. Among them, the operating system business, as the company's basic core business, benefited from product and technology iterations and increased demand for localized procurement from downstream customers. The revenue of 111 million yuan achieved a rapid increase of 57.43% over the same period last year, which not only increased the company's revenue growth, but also boosted the company's overall gross margin. By industry, the defense sector is the company's key revenue industry. The company achieved revenue of 304 million yuan in the defense industry in 2022, which still achieved 20.46% growth. The role of the defense sector business as the ballast stone of the company's performance was further highlighted.
The main line products have evolved iteratively, and product functions continue to be enriched. The company continues to invest in the research and development of the three major product lines, maintains continuous iterative updates of product lines, and continues to enrich product functions. 1) Operating system: The company released Kirin Xinan operating system V3.5.1 based on OpenEuler 22.03 LTS; in response to hot demand generated by CentOS downtime, the company released the system migration tool Convert2Klinysec V1.5, which can cover all CentOS system migration scenarios. 2) Information security: The company's data security storage products have broken through the core technology of the dual-host isolated secure storage system protocol stack, and released the first stage version of the secure storage system based on next-generation domestic software and hardware platforms. At the same time, the company is actively exploring new product areas, developing network security products for data exchange, and has completed the preliminary development of 10 gigabit data security exchange software. 3) Cloud Computing: Kirin Xinan Cloud Desktop V8.1.9 and Kirin Xinan Cloud Platform V8.1.8-3 were officially released. Heterogeneous integration and virtualization support capabilities of domestic platforms have been expanded to enable the company's “One Cloud Multi-Core” Xinchuang Solution to support all domestic CPU architectures.
Publish a draft equity incentive, increase the binding of talent interests, and further clarify the increase in confidence. On March 24, the company released the draft restricted stock incentive plan for 2023. The number of restricted shares to be granted under this incentive plan is 200,000 shares, about 0.38% of the company's total share capital, of which 162,200 shares will be granted for the first time. According to the draft, the current equity incentive plan is based on 2022 revenue and net profit. The 2023-2025 revenue growth will not be less than 30%/69%/119%, respectively, and net profit will not be less than 15%/32%/52%, respectively. When the company went public, it already had four major employee shareholding platforms. This equity incentive plan adds employee incentives to the existing employee shareholding platforms, further strengthening the binding of core employees to the business backbone and the company's long-term interests. At the same time, the target for this equity incentive assessment requires that the compound revenue growth rate for the next three years be no less than 30%, which also reflects the company's confidence in the rapid development of future business and rapid revenue growth.
Investment advice: Based on the company's 2022 annual report, we adjusted the company's profit forecast, predicting that the company's 2023-2025 revenue would be 536/709/906 million yuan respectively (the forecast value before 2023/2024 was 535/699 million yuan), and Guimo's net profit was 155/192/259 million yuan respectively (the forecast value before 2023/2024 was 144/172 million yuan), and the corresponding PE was 61/49/37 times respectively to maintain the “buy” rating.
Risk warning: Risk of high dependency on a single customer, risk of increased industry competition, risk of industry expansion falling short of expectations, etc.