Domestic password security leader, maintaining the "buy" rating
We maintain the company's 2023-2025 homing net profit forecast of 2.27,3.01,376 million yuan, EPS 1.06,1.41,1.76 yuan per share, the current stock price corresponding to PE is 26.1,19.7,15.8 times, the company as a password security leader, product line continues to expand, we are optimistic about the company's development prospects and maintain the "buy" rating.
The performance is in line with expectations and the recovery of government business is obvious.
The company released its mid-2023 report that its operating income in the first half of the year was 178 million yuan, an increase of 4.28% over the same period last year, of which Q2 realized revenue of 126 million yuan in a single quarter, an increase of 18.45% over the same period last year. From a sub-industry point of view, customer business demand and project promotion in the financial industry gradually recovered, achieving income of 101 million yuan, down 14.18% from the same period last year, narrowing the quarterly decline in income; with the recovery of procurement and demand from the data Bureau, public security, medical, tobacco, water conservancy and other departments, the government industry achieved revenue of 39.8229 million yuan, an increase of 84.24% over the same period last year. Due to the increase in purchasing demand from customers such as the information technology software industry, manufacturing industry, and financial services industry, the enterprise industry achieved an income of 37.3302 million yuan, an increase of 18.34% over the same period last year.
The increase in personnel and incentives will affect net profit performance and is expected to improve in the second half of the year.
The company achieved a net profit of-27.7907 million yuan in the first half of the year, down 209.86% from the same period last year. Mainly due to: (1) the company increased recruitment efforts in the second half of last year, the number of employees increased. The total number of employees at the end of the second quarter was 1025, an increase of 33.6% over the same period in 2022 and 13% over the end of 2022. The company's personnel growth slowed in the first half of the year, and expense growth is expected to decline significantly in the second half of the year. (2) in order to retain high-quality talents, the company increases the salary of employees and implements equity incentives.
Successful acquisition of universal technology, further enrichment of technology and products
In the first half of the year, the company successfully acquired Universal Technology. On the one hand, it added data security products such as cross-network isolation switching, terminal security control and data security archiving to enrich the functions and solutions of data security products. On the other hand, Universal Technology has first-mover advantages in efficient and reliable cross-network data transmission technology, magneto-optical hybrid data safe archiving, storage and retrieval technology, and data security protection technology. the company's overall technology extends to terminal baseline inspection, terminal security evaluation technology, data classification management, data fault-tolerant check and other technologies.
Risk hint: market competition intensifies; downstream customers'IT expenditure is reduced.