Event: on August 29, Shengbang Security released its 2023 semi-annual report. The company achieved revenue of 93.017 million yuan in the first half of the year, an increase of 41.43% over the same period last year, a net profit of-6.3045 million yuan, a year-on-year loss reduction of 35.58%, and a deduction of non-net profit of-8.2655 million yuan, a year-on-year loss reduction of 28.44%. In the second quarter alone, the company achieved revenue of 57.5402 million yuan, an increase of 41.27% over the same period last year; net profit of 759600 yuan, an increase of 133.46% over the same period last year; and deduction of non-net profit of-1.1961 million yuan, an increase of 70.20% over the same period last year.
2023H1 achieved a gross profit margin of 72.71%, year-on-year-1.78pct, and net profit margin-6.78%, + 8.10 pct year-on-year. The overall expense rate of the company is 89.54%, year-on-year-10.68 pct, of which the sales expense rate, management expense rate and R & D expense rate are 46.24%, 15.09% and 28.88% respectively, which are-5.88 pct, + 1.35 pct and-5.47pct, respectively.
With the rapid growth of cyberspace map business, it has become the second growth pole of the company. Cyberspace map is mainly used in important areas of public security, such as national defense, Internet Information Office, Guoan and so on. The company is an industry forerunner and explorer in the field of cyberspace map. At present, it has formed products such as network asset security management platform, cyberspace asset surveying and mapping system, cyberspace open source intelligence early warning system, cyberspace attack surface management system, cyberspace map mapping analysis system and so on. Accumulated some typical project cases and experience, with first-mover advantage. 2023H1's cyberspace map orders grew by more than 50% year-on-year and are expected to continue to grow in the future.
The basic business of network security is the cornerstone and the growth is steady. The basic business of network security is the cornerstone of the company's business, accounting for more than 45% of revenue in 2022. Revenue has continued to grow steadily in recent years, with an annual growth rate of more than 15% in the past three years. Network security basic products mainly meet the basic needs of customers to "check", "prevent" and "manage" network security when building networks and business systems, that is, security review, access control and security management. it is used in basic application scenarios such as customer network operation and compliance construction in various industries. After years of technology accumulation and product polishing, this kind of products are highly recognized in the industry. According to IDC statistics, the company ranked third and fifth in market share of vulnerability scanning evaluation system and Web application protection system in 2022, respectively; at the same time, the company actively promoted the whole market and increased channel sales efforts. Under the background of continuous expansion of market demand, the company's revenue from network security basic products also increased significantly.
There are plenty of orders on hand, and continuous research and development provides growth momentum. In the first half of 2023, the company's orders increased by 54% compared with the same period last year, with sufficient on-hand orders, laying the foundation for full-year results. The company continues to attach importance to research and development, and 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. The 30 core technology sources are all independent research and development. Through technological R & D and innovation, the company continues to launch innovative products and solutions to enhance market competitiveness.
Investment suggestion: the company's revenue from 2023 to 2025 is expected to be 3.29,4.60 and 658 million yuan respectively, with year-on-year growth rates of 39.33%, 39.78% and 43.00% respectively, and the return net profit is 0.69,0.95 and 138 million yuan respectively, corresponding to 0.81,1.12,1.62 yuan EPS in 2023-2025.
Cover for the first time, giving a "buy" rating.
Risk hint: the risk of intensified competition in the industry, less than expected R & D progress, and less than expected business development.