Geer Software (603232) Quarterly Review: Expected Q4 Revenue Growth Over 40%, Implementation of Cryptography Method Is Really Good

Geer Software (603232) Quarterly Review: Expected Q4 Revenue Growth Over 40%, Implementation of Cryptography Method Is Really Good

The event company released the third quarter results announcement on October 25, and the first three quarters net eliminated 550.

930,000 yuan, a profit of 1123 in the same period last year.

920,000 yuan; operating income1.

51 ppm, a reduction of 2 per year.


The one-month confirmation rhythm affects Q3 performance. The reversal of the growth rate of the Q4 report is a high probability event. Considering the attributes of the company’s customers, the gradual increase in revenue we believe is mainly related to the single-month confirmation rhythm in September.

According to the 2018 annual report, the company’s operating target for 2019 is about 3.

700 million.

Assuming the business goal is achieved, the company’s Q4 revenue is estimated to be about 2.

200 million, an increase of 47% in ten years.

Considering that most of the company’s customers are old customers, we believe that the company’s business objectives are highly predictable.

And the company in the 2017 annual report made the 2018 business target forecast (target revenue 3).

200 million, actual income 3.

100 million), basically achieved.

The forward-looking indicators such as advance receipts remain positive, and the mismatch in revenue costs affects current profits. According to the three quarterly report, the company’s advance receipts reached zero.

800 million, continued to grow sequentially, an increase of 67% per year.

Since the third quarter of 2018, the company’s advance accounts have maintained rapid growth, but at the same time revenue growth has been weak.

Considering Q4 is the peak of project confirmation, we are optimistic that the company’s revenue growth rate matches the business climate.

The company’s net profit in the first three quarters was slightly loss, mainly due to a substantial increase in expense ratio of approximately 18.

Nine related ones, of which the management expense ratio increased by about 13.

9 units.

We believe that the substantial increase in the expense ratio is mainly related to the mismatch of revenue and cost (the company’s costs are relatively rigid, but the peak of revenue recognition is in the fourth quarter, according to the announcement that the company’s revenue ratio in the fourth quarter of 2018 is about 50%).

Considering the business climate, we maintain our profit forecast unchanged.

Cryptography law imminent, company 2020?
2021 high growth is worth looking forward to According to Xinhua News Agency, the cryptographic law will be implemented from January 1, 2020.

Policy-driven, localization of passwords and the expected decline of cities and counties are accelerating.武汉夜生活网

Based on this, regardless of the new business including security controllability and camera security contribution, maintain the company’s net profit attributable to mothers in 2019-2021.

77, 1.

00, 1.

4.6 billion US dollars, maintaining a target market value of 5.2 billion US dollars, maintaining the level of holdings. Risk reminder: Progress in the replacement of state secrets is gradually expected, the security development of the Internet of Things is expected, and market competition is intensifying