Event: the company's Q1 is expected to achieve net profit of 10 million yuan to 15 million yuan in 2021, down 53.29% and 68.86% compared with the same period last year, and basic earnings per share is expected to reach 0.06 yuan / share-0.09 yuan / share, which is in line with our expectations. Among them, excluding the impact of equity incentive costs of about 30 million, the net profit is expected to increase by 20 per cent and 40 per cent compared with the first quarter of 2020.
The active expansion strategy has made a scale breakthrough, and Q1 revenue has risen steadily: in 2021, the company deeply excavated customer demand in the field of data collection, continued to expand application scenarios, and was highly recognized by various industries and markets. In the field of data application, the company expanded the product range and subdivision coverage of big data operating products and network content security products, further expanded the width and depth of the market, and made a breakthrough in industry scale. Q1 in 2021, the company expects operating revenue to grow by about 20% over the first quarter of 2020 and about 100% over the first quarter of 2019.
Continue to give full play to the synergy between products to promote continuous improvement in performance: the company applies big data-related core technologies accumulated over the years to network content security products, network visualization infrastructure products and industrial Internet security products to promote front-end business integration and continue to meet market demand. In 2020, H1, the business income of network content security products increased by 578.04% over the same period last year, while the operating income of big data's operating products increased by 696.13% over the same period last year, boosting a new space for performance. In 2021, the company will continue to deepen the product reconstruction of "front-end product advantages + back-end big data platform category", and the future performance growth is expected to further improve.
Favorable policies to promote the development of the industry, leading enterprises continue to benefit: on April 9, the inaugural meeting of the Industrial Internet platform Innovation Cooperation Center was held in the China Industrial Internet Research Institute. It was learned from the meeting that the relevant departments will speed up the introduction of the 14th five-year Plan for the integration of modernization and modernization, the action plan for the digital transformation of the manufacturing industry, and promote policies such as the Industrial Internet Innovation and Development Project and the "Industrial Internet + Safety production Action Plan (2021-2023)". A new round of favorable policies will drive the rapid development of the data collection and information security industry. We believe that network visualization, as an important part of the data infrastructure, will continue to benefit from the acceleration of 5G traffic and the increased security demand of Guoxin, the market size will continue to grow rapidly, and Zhongxin Sike, as a leading enterprise in the industry, will continue to benefit.
Profit forecast and investment rating: according to the latest operation and orders of the company, and combined with the tracking of upstream and downstream industry chains, we will lower the EPS of 2020-2021 from 1.99b 2.56 / yuan to 1.38max 1.91 / yuan, and it is estimated that EPS will be 2.49 yuan in 2022. The current market capitalization corresponds to 32.31 PE 23.32 + 17.84 times in 2020-2022. Take into account the prosperity of network visualization and continue to upward, maintain the "overweight" rating.
Risk hint: increased competition in the industry; economic policy is not as expected.