Items:
1) according to the Enterprise Observer, Xinyuan Doudou officially announced the platform for members of the CPPCC National Committee to perform their duties.
The CPPCC National Committee member fulfillment platform was fully put into use in 2018 and co-sponsored with China Unicom. Xinyuan Doudou provides the platform with important functions such as contact, peer-to-peer communication, system information push, and theme political discussion. the system has been running steadily since it was launched for more than a year.
2) according to the company's official account, Beixin Source antivirus system V3.0 products have completed the compatibility certification with Huawei FusionAccess Kunpeng Desktop Cloud V8 and obtained the technical certificate.
Comments:
Xinyuan Doudou serves the CPPCC performance platform and is expected to accelerate its promotion and application. At present, Xinyuan Doudou products have completed the comprehensive adaptation of the localization platform and its technology from server to client, from operating system to database, from middleware to encryption algorithm, and gives a perfect solution according to the needs and application modes of different customers. It has been deployed and applied to many government, military, financial and energy industry units, such as the Ministry of Public Security, Internet Information Office, Aerospace Science and Industry Group, Bank of China Ltd., people's Bank of China clearing center, and so on. And from the beginning of February to June 30, 2020, the company opened Xinyuan Doudou free of charge to facilitate users to telecommute and communicate during the COVID-19 epidemic.
The anti-virus system has completed the compatibility certification with Huawei Kunpeng and the cooperation has been further deepened. Beixin Source antivirus system V3.0 products have completed compatibility certification with Huawei FusionAccess Kunpeng Desktop Cloud V8, after the company's important information security and secure communications products Northern Source Host Monitoring and Audit system v1.2 and Beixinyuan Instant messaging Source Doudou V4.1.0 have been adapted on Huawei FusionAccess Kunpeng Desktop Cloud. The two sides are also further expanding the scope of compatibility adaptation testing to provide more safety products and application products for Kunpeng ecosystem.
Growth is expected to accelerate in 2020. According to the company's performance, KuaiBao, the company's revenue in 2019 was 714 million yuan, an increase of 24.8 percent over the same period last year, and its net profit was 23.0941 million yuan, down 75.46 percent from the same period last year. The decline in performance is mainly due to the company's increased investment in Xinchuang products, resulting in a year-on-year increase in R & D expenses of more than 30%. At the same time, the gross profit margin has declined due to market competition. The company will face greater market opportunities in 2020, and the scale effect will gradually form, which is expected to promote the rapid growth of revenue and profits.
Investment suggestion: considering the continuous increase of the company's investment, we downgrade the company's net profit forecast for 2019-2021 to 23 million, 207 million, 295 million (the original forecast is 159 million, 273 million, 394 million yuan), corresponding to 597 times, 67 times and 47 times PE respectively. With reference to comparable company valuation and company historical valuation, we give the company 55 times PE in 2021, corresponding to the target price of 11.19 yuan, maintaining the "recommended" rating.
Risk hint: the new business development is not as expected; the policy landing is not as expected.