21Q1 returns to normal as performance declines in 2020
The company's 2020 income is 725 million yuan (+ 7.53%), the return net profit is 60 million yuan (- 33.64%), and the non-return net profit is 38 million yuan (- 48.50%). The income of 2021Q1 company is 95 million yuan (+ 63.52%), the relative 19Q1 income increases by 28.38%, the net profit of returning to the mother is-84 million yuan (- 20.29%), and the net profit of non-returning to the mother is-85 million yuan (- 20.52%).
Affected by the epidemic in 2020, the performance declined greatly, and 21Q1 has made a great recovery.
Investment in R & D has been continuously strengthened, and multi-category expansion has been smooth.
The decline in the company's gross profit margin is mainly due to the addition of integrated business, with revenue reaching 55 million yuan. In terms of expense rate, the sales expense rate is 30.63% (- 1.68 pct), management expense rate is 5.71% (- 1.65%), and the R & D expense rate is 29.26% (+ 1.58 pct); R & D is still a high intensity investment. Based on this, the company's multi-product expansion has also achieved results, with border security revenue of 535 million yuan (- 7.49%), cloud security revenue of 46 million yuan (+ 29.42%), and other self-owned security products of 83 million yuan (+ 52.28%), mainly including company data security, application delivery, WAF, security services and so on. WAF is also shortlisted for mobile 2020-2022 WAF collection.
The new hardware platform greatly improves the performance-to-price ratio, and after high investment, the company is expected to become a turning point in 2021. The company is one of the few security manufacturers with hardware research and development capabilities, self-developed a new generation of firewall hardware platform, and on this basis released the next-generation firewall A series firewall products and B series channel products; compared with the previous, greatly improve the product performance-to-price ratio. For example, the high-performance data center security platform X8180 is the industry's leading frame firewall per unit of throughput.
In terms of channels, the company set up the Channel Strategy Department and the Channel platform Department, the number of employees of the Channel Department increased from 48 at the end of 2019 to 108 at the end of 2020, and the number of channel agents reached 1379, an increase of 837 compared with the same period last year. The company attaches unprecedented importance to the channel, and after the iteration of superimposed high-performance products, the independent production capacity of the channel is expected to break through. The company has continued to expand its product line in recent years, expanding its security service business in 2020, constantly reminding solution manufacturers to break through risks: policies such as equal insurance 2.0 are not as expected, industry competition is intensified, and the impact of the epidemic is intensified.
Investment advice: maintain a "buy" rating.
It is estimated that the income from 2020 to 2022 will be RMB 9.73 billion, 12.55 billion RMB, with an annual growth rate of 34%, 29%, 26%, and diluted EPS=0.51/0.70/0.95 yuan, respectively. Maintain a "buy" rating.
