Event
The company released its 2023 semi-annual report after the close on August 9, 2023.
Comments:
The operating income has achieved steady growth, and the growth rate of the government industry is bright.
In the first half of 2023, the company achieved operating income of 177.879 million yuan, an increase of 4.28% over the same period last year; and realized net profit of-27.7907 million yuan, mainly due to the increase in recruitment efforts in the second half of last year, the increase in the number of employees, and the 48% increase in costs caused by the increase in employee compensation and the implementation of equity incentives; the net profit of non-return was deducted-27.7011 million yuan. The business demand and project promotion of customers in the financial industry gradually recovered, achieving an income of 100.726 million yuan, a decrease of 14.18% over the same period last year. With the recovery of procurement and demand from the data Bureau, public security, medical, tobacco, water conservancy and other departments, the government industry achieved an income of 39.8229 million yuan, an increase of 84.24% over the same period last year; and the income of the enterprise industry reached 37.3302 million yuan, an increase of 18.34% over the same period last year.
Continue to increase R & D investment, lead or participate in a number of national standard writing companies continue to increase R & D investment, investment in R & D expenditure of 88.4752 million yuan, an increase of 63.40% over the same period last year, accounting for 49.74% of business income. The company attaches importance to R & D team building. As of June 30, 2023, there were 473 R & D personnel, an increase of 40.36% over the same period last year, accounting for 46.19% of the total. The company strengthens scientific research, leads or participates in the compilation of 10 national standards such as "GB/T 25069-2022 Information Security Technology terminology" and "Information Security Technology big data Service Security capability requirements"; leads or participates in the preparation of 32 industry standards such as "GM/T 0118-2022 browser Digital Certificate Application Interface" and "GM/T 0122-2022 Block chain password Detection Specification". Obtain a number of product qualification certificates, including 96 new software copyrights and 21 invention patents.
Successful acquisition of universal technology to enrich data security products
In the first half of 2023, the company mainly released two products: cloud server password machine (CCypher-HSM) and video security all-in-one machine (NetVSG). Among them, cloud server password machine product is the necessary basic security resource of cloud data center. Combined with the company's password service platform, the company can provide compliance, security, efficiency and variety of password security services for cloud platform and cloud tenants. Video security all-in-one products are specially used for video surveillance data integrity protection products, which can help users meet the security requirements of video surveillance and ensure video security compliance. The company has completed the acquisition of universal technology, adding cross-network isolation switching, terminal security control, data security archiving and other three categories of products, greatly enriching the company's data security product line products. The company actively promotes the integration of universal science and technology, and sets up an integration team, led by the chairman and in charge of the vice president, to form a regular meeting system for integration in management, product, R & D and sales.
Profit forecast and investment suggestion
With the rapid development of digital economy, the emerging demand for network information security continues to emerge, the company actively layout new business type, new applications, new scenes, the future growth space is relatively broad. With reference to the company's performance in the first half of the year, the company's operating income forecast from 2023 to 2025 is adjusted to 8.38,10.55 and 1.308 billion yuan, the net profit is adjusted to 2.19,2.84 and 351 million yuan, the EPS is 1.03,1.33,1.64 yuan per share, and the corresponding PE is 27.68,21.40,17.29 times. Since listing, the PE of the company has mainly run between 27 and 59 times. Considering the growth of the company and the valuation level of the industry, the target PE of the company in 2023 has been adjusted to 38 times, and the corresponding target price is 39.14 yuan. Maintain a "buy" rating.
Risk hint
The risk that product iteration can not meet the needs of market development; the risk of loss of core technical personnel and technology leakage; the risk of seasonal fluctuations in business performance; the risk of intensified competition in the industry; the risk of impairment of goodwill.