Event: the company released its semi-annual report for 2023, with an operating income of 93 million yuan, an increase of 41.43% over the same period last year; a net profit of-6 million yuan and a narrowing loss over the same period last year; deducting a non-return net profit of-8 million yuan; and a gross profit margin of 72.71%, a year-on-year increase of-1.78pct. On a quarterly basis, 2023 Q2 realized operating income / return net profit of RMB 0.58 billion respectively, up 41.27% and 133.46% respectively over the same period last year; gross profit margin was 75.22%, year-on-year-5.23pct.
Comments: operating income increased significantly, return to the mother of the net profit and loss significantly narrowed. 2023 the operating income of H1 company increased by 41.43% compared with the same period last year. Among them, the revenue of cyberspace map business and network security basic business has increased greatly. In addition, the company's orders increased by 54% year-on-year, of which public safety business orders increased by more than 100%. The network security industry has obvious seasonal characteristics, the income is mainly concentrated in the second half of the year, and the major expenses are relatively balanced in each quarter, resulting in losses in Q1 and Q2, and the net profit of H1 is-6 million yuan. however, the loss was significantly narrowed compared with the same period last year, and the profit improved.
During the period of the company, the expense rate decreased and the R & D cost increased. 2023 the sales expenses / management expenses / financial expenses of H1 company were 0.43 million yuan, respectively, which increased by 25.47% / 55.32% /-9770.54% respectively over the same period last year. The sales expense rate / management expense rate / financial expense rate was 46.24% / 15.09% /-0.67% respectively, and the period expense rate was 60.66%, year-on-year-5.21pct. The investment in R & D was 27 million yuan, an increase of 18.91% over the same period last year. The company has mastered the important core technologies in the fields of vulnerability threat detection technology, application security defense technology, cyberspace surveying and mapping technology, big data security analysis based on threat intelligence, satellite Internet and so on. As of August 2023, the company has obtained 33 patents, including 31 invention patents and 123 computer software copyright.
Take the basic products of network security as the basic disk to create a new growth pole of cyberspace map. The company's main business can be divided into network security basic category, business scene security class, cyberspace map class and network security service. From the perspective of revenue structure over the years, the basic business of network security is the company's largest main business. According to IDC statistics, the company's vulnerability scanning and evaluation system and hardware WAF ranked third and fifth respectively in China in 2022. In addition, the company is a pioneer in the field of cyberspace maps, with 2023H1's orders for cyberspace maps growing by more than 50% year-on-year. The company has stored 14 domestic core patents in the field of cyberspace map, and the key technologies have filled the technical gaps in the field of cyberspace map system, IPv6 address mapping and semi-cooperative mode penetration technology (stealth device discovery technology).
Profit forecast: the company has a leading advantage in loophole and vulnerability detection, application security defense and other areas, and has a first-mover advantage in the field of cyberspace maps. We expect the company to achieve a homing net profit of $0.77 million in 2023 / 2024 Universe in 2025, with a "buy" rating.
Risk tips: industry development, the company's business progress, profit forecasts and valuations are lower than expected.