Affected by the inclusion of Jiangnan Keyou in the consolidated statement, the revenue and profit of single Q3 company increased sharply. Commercial secret industry policy incentives, the company's new products gradually put into the market, to maintain the "highly recommended" investment rating.
Event: the company released the third-quarter report of 2023, the first three quarters achieved revenue of 236 million yuan, YoY+37.35%; return net profit of 40 million yuan, YoY+ 33.24%; deduction of non-net profit of 32 million yuan, YoY+ 35.54% YoY+ 23Q3 revenue of 133 million yuan, YoY+70.30%; return net profit of 30 million yuan, YoY+ 90.88%; deduction of non-net profit of 24 million yuan, YoY+ 54.97%.
And under the influence of the high performance, the company strengthens the layout of the financial industry. Single Q3 company achieved a high increase in revenue and net profit, we think it is mainly due to the merger scope of the company to increase the newly acquired Jiangnan Keyou. The revenue of Jiangnan Keyou in 21-22 is 118 million yuan, and the net profit is 0.18 billion yuan. The financial performance is sound, which will have a positive impact on the company's annual revenue and profit level. In addition to the impact of merging, the integration work between the company and Keyou has been officially launched in the second half of the year, and Keyou's password application in finance and other industries occupies a dominant position, which will help the company to realize its strategic layout in the financial field; the company's accumulated solutions and cost advantages in cryptographic algorithms and cryptographic hardware products will provide a huge boost to Keyou's business. Under the sharing of market channels and customer resources, a good industrial synergy will be formed. The company achieved a gross profit margin of 72.63% in the first three quarters, down 3.61pct from the same period. In terms of expenses, the rate of sales / management / R & D expenses in the first three quarters of the company was 26.13%, 10.95%, 29.53%, respectively, an increase of 2.39 Maxime 0.85 / 1.68pct over the same period last year. We believe that the main reason is that the company continues to increase investment in research and development and constantly improve its hard power with password chips as the core.
The merchant secret policy promotes the continuous release of new products to improve the chip layout. In terms of policy, the commercial password industry policy actively encourages technological innovation and industrial innovation. The regulations on the Administration of Commercial passwords will come into effect on July 1, 2023. The measures for the Administration of Security Evaluation of Commercial password applications, studied and drafted by the State password Administration on June 9, was officially issued in October and will come into force on November 1, 2023. The regulations systematically improve and refine the commercial password management system. Security assessment is an important starting point to strengthen and standardize the application of commercial passwords, which will promote the development of the industry. In terms of chip results, at the 2023 commercial password conference on August 9, the company released random number chip XR100, Internet of things security chip XT100 and XT200, forming a high, medium and low password chip layout; XS100 high-performance chip used in the cloud gradually completed the upgrade of traditional products, and has formed a separate sales revenue.
Maintain the "highly recommended" investment rating. With continuous policy incentives in the commercial secret industry, the company's new products have been gradually put into the market, and taking into account the positive impact of the amalgamation of science and technology friends in the south of the Yangtze River, the company's 2023-2025 net profit has been raised to RMB 2.33 million, maintaining a "highly recommended" rating.
Risk tips: policy landing is less than expected, industry competition is intensified, and costs are rising.