It was covered for the first time, and a “increase in holdings” rating was given. We expect the company's EPS in 2023-2025 to be 1.28, 1.70, and 2.23 yuan, respectively, with year-on-year growth rates of 36%, 33%, and 31% respectively. According to 2024, 32.39 times PE, the target price is 55.06 yuan, giving it an “increase in holdings” rating.
The company is a scarce commercial cryptographic infrastructure enterprise with a full product line. The company has long focused on the production and sales of products such as cryptographic boards, cryptographic machines, and cryptographic systems, etc., and successfully entered the core upstream cryptographic chip field in 2022, becoming one of the few enterprises with a complete commercial infrastructure product line in the industry. The company's various product performance indicators have reached industry-leading levels, outstanding technical strength, high-quality customer resources, and has initially established a first-mover market advantage in emerging fields such as cloud computing and blockchain. It is expected to achieve rapid development in the face of industry transformation opportunities.
The resonance of multiple factors is driving rapid growth in the commercial secret industry, and the share of technologically innovative enterprises is expected to increase.
With the introduction of a series of laws and regulations, the importance and use of cryptographic technology by government and enterprise customers has increased dramatically; the transformation of national secret algorithms has spawned a new wave of localization in the industry; and the development of emerging technologies such as cloud computing, blockchain, and the Internet of Vehicles has brought new application scenarios, jointly promoting the rapid development of the commercial secret industry. Large government and enterprise customers and new technology scenarios place higher demands on the technical level of cryptographic products, and market share is expected to be concentrated on leading manufacturers with outstanding technical strength.
Cryptographic chips have opened up a second growth curve, and are expected to exceed expectations in the future. The company's self-developed domestic cryptographic chip has many technical advantages such as high performance, high concentration, and support for virtualization. It was first mass-produced in 2022 and achieved sales revenue of 6.41 million. It is expected that sales will be carried out in various new application scenarios of IoT encryption in the future, thus driving the company's performance to exceed expectations.
Risk warning: risk of falling customer IT budgets, risk of increased industry competition