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迪普科技(300768):安全产品增速回暖 运营商保持较高增长

Dipu Technology (300768): The growth rate of security products is picking up, and operators are maintaining high growth

國信證券 ·  Apr 24, 2024 10:36

Revenue gradually recovered in '23 and maintained steady growth in the first quarter. The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 1,033 million yuan (+15.77%), net profit to mother of 127 million yuan (-15.44%), and net profit of 119 million yuan (-12.32%) after deducting non-return to mother. The 24Q1 company's revenue was 255 million yuan (+10.16%), net profit attributable to mother was 37 million yuan (+12.37%), and net profit after deducting non-return to mother was 0.3 million yuan (+5.07%). The company's performance continued to recover in the first quarter.

Security products have recovered significantly, and the operator market has maintained high growth. By business, revenue from security products was $691 million (+25.82%), revenue from application delivery and network products was $267 million (-4.20%), and revenue from security services was $70 million (+10.07%). By industry, operator revenue is 273 million yuan (+29.84%), government revenue is 358 million yuan (+4.52%), and utility revenue is 206 million yuan (+17.98%). In the operator sector, the company is the only manufacturer with a full range of security products selected for China Mobile Collection. Firewalls are selected for all standard packages, including 600G high-end.

Gross profit margins have recovered, and contrarian expansion has led to an increase in expenses. The company's gross margin was 68.83%, up 1.04 percentage points from the previous year, and increased again in 24Q1. Against the backdrop of the macro environment and pressure on the IT industry, the company continued to expand against the trend. The number of personnel increased by 199 people (+13.35%). In particular, the sales staff increased by about 29%, so the company's expenses grew rapidly. In '23, the company's sales expenses were 403 million yuan (+32.93%), R&D expenses were 255 million yuan (+4.40%), and management expenses were 36 million yuan (+8.37%). The company's orderly expansion strategy has achieved remarkable operating results, and has achieved steady growth in all core industries.

Employee stock ownership plans demonstrate confidence. The company issued a draft employee shareholding plan in March '24. The total number of participants was no more than 147, and the total number of shares transferred was no more than 3.785 million shares, accounting for about 0.59% of the current total share capital. The transfer price was 7.23 yuan/share. Based on the consideration of the company's medium- to long-term strategic goals, this plan sets individual performance evaluation indicators, and does not set short-term company-level performance assessment goals.

Localized procurement for application delivery is expected to recover. The company has a strong competitive advantage in the field of application delivery, pioneering breakthroughs in key technologies. High-end products can have a maximum throughput of 400G. It is a domestic manufacturer of load balancing collection by the Industrial and Commercial Bank of China. In the power industry, the company's product share exceeds 50%, and it is the only domestic application delivery manufacturer at the State Grid headquarters. As the Xinchuang industry gradually accelerates in the latter half of the 14th Five-Year Plan period, the company's application delivery in the high-end market will speed up the replacement of F5 and other manufacturers.

Risk warning: Macroeconomics affects IT spending; industry competition intensifies; new business expansion falls short of expectations.

Investment advice: Maintain a “buy” rating. Due to the impact of the pace of economic recovery, we lowered our profits. The estimated net profit for 2024-2026 is $180/2.44/324 million yuan (originally forecast of $392/479 million for 24-25), corresponding to current PE 40/29/22 times. Considering the company's contrarian expansion while maintaining a high quality of growth, it is expected to reverse further in 24 and maintain a “buy” rating.

The translation is provided by third-party software.


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