This report is read as follows:

Shanshi Netek is the leader of the firewall industry, with obvious technical advantages, with the strengthening of sales capacity, the future development will exceed expectations.

Main points of investment:

Cover for the first time, give the rating of increasing holdings, the target price is 37.50 yuan. It is predicted that the EPS of the company from 2021 to 2023 is 0.56 Universe 0.75 Universe 1.04 respectively. The target price is 37.50 yuan, corresponding to 50 times PE in 2022.

Shanshi Netek is the leader of China's firewall industry with obvious technical advantages. Shanshi Netcom's firewall products have been continuously recognized by domestic and foreign markets, and have been recommended by Gartner "Network Security Technology maturity Curve report" for eight years; have been selected into the "network firewall magic quadrant" of Gartner for seven consecutive years, and ranked sixth in the world in the technology forward-looking dimension in 2020, while domestic manufacturers ranked first. We believe that the firewall industry will remain high, and forecast that the growth rate of corporate border security revenue will be 40%, 30%, 30%, respectively, from 2021 to 2023.

The company adopts the sales model of the combination of direct sales and channel agent sales, and forms a three-dimensional interlock mechanism of "region + industry + business group" within the sales system, and the future development will exceed expectations.

Shanshi net is strengthening the construction of sales capacity and gradually giving play to its own technical and product advantages. the number of sales personnel and channels has increased rapidly in recent years, and its future development will exceed market expectations.

Relying on its own genetic and product advantages, the company will make efforts in overseas markets. Based on the policy guidance of "Belt and Road Initiative", the company will actively expand the international market, and will further focus on South America, Europe and Southeast Asia in the future. Under the premise of mastering the local policies and regulations, we will launch customized and localized products that meet the needs of different countries and regions. The company plans to build a better global marketing network and service support system to improve customer response speed and service quality.

Risk hint: the risk that overseas expansion is less than expected, and the government's IT budget is insufficient.