Zhitong Financial APP learned that Minsheng Securities released a research report saying that in the path of passwords from minority to standard, benefiting from Xinchuang and double-clicking of data elements, the new and old tracks are expected to reflect each other, and the bank judged that the line between the upstream and middle reaches of the password industry chain will be further blurred. Password security naturally has the attribute of strong binding with users, which determines that the mid-stream manufacturers with identity authentication as the main business model will continue to act as the "mainstay" identity. on the other hand, the upstream enterprises with the cost advantage of the supply chain are expected to build a new atmosphere of competing with the mid-stream manufacturers in the new track. Firmly optimistic about the overall block investment opportunities.
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The main points of Minsheng Securities are as follows:
The key inflection point for passwords from minority to standard has arrived.
The traditional customers in the password industry are relatively minority, mainly in the party, government and military, finance, finance and other key units. From the commonness of the relevant key customers, it can be inferred that the data of their own business has two major characteristics: 1) the degree of autonomy and controllability of the data determines the stability of the business; 2) the data has the characteristics of actual production factors. The bank believes that the general trend of Xinchuang promotes the upgrading of domestic data base encryption protection + the unprecedented increase in the security demand of data as an important factor of production, data protection from concomitant to first, the cryptographic industry has officially ushered in the inflection point from minority to standard. The ducks with warm water in the river are the first to feel the smell of spring, and both the leading companies in the industry have issued IPOs and equity incentives one after another (Jida Zhengyuan released private equity offerings; Dianke Network Ann & Geel Software released equity incentives; Xinan Century SEO), or the high growth rate of upstream suppliers in the past three years (from 2019 to 2021, the CAGR growth rate of information income of Sanwuanan and fishermen was 41.9% and 88.9%), all indicate that the industry will usher in block catalysis.
Xinchuang is the main line of the sublimation of the password industry.
Since the release of the "reinsurance" policy in 2006, password-related information creation policies have been issued continuously, including "three guarantees and one review", "password law" and other policies, so that the password industry has both top-level directionality and specific policies. Reviewing the history of the programmatic policy release of the password industry, the bank found that the policy has been continuously improved from the basic framework of the password industry, and has formed a policy combination for the stable development of the industry. In 2019, the password Law promulgated and standardized the standard and development framework of the domestic password industry, and in 2022, the policy combination of "three guarantees and one evaluation" was promulgated. The password industry is led by many departments and advances together in different industries (customs protection will be formally implemented on May 1, 2023). Combined with the "regulations on Commercial password Management" into the administrative regulations to be formulated and revised by the State Council in 2022, password construction is both directional and clear on the policy side.
Password, as the basis and guarantee for the safe use of data elements, is expected to be upgraded from the original compliance concomitant to active advance deployment.
Looking forward to the financial industry with strong encryption demand, opening up the exchange of ecological data among banks and taking the lead in ensuring that data can not be tampered with and encrypted has been proved to be a prerequisite for data exchange. In the trend of data as a core factor of production, the cryptographic industry is expected to blossom in emerging markets, driven by the decisive factors in the benefits of data. Behind the scenes of the era when Siwei Tuxin and Dianke Network Security began strong supervision of industry data in the smart car and gaming industries, relevant companies have opened business layouts or promoted related orders in the Internet, Internet of things, power, medical and other industries. The proactive deployment model indicates that password security is expected to form a standard configuration.
Optimization of competition pattern: from mainstay to competition.
From the industrial derivation, the demand of downstream customers is the first principle to determine the direction of the industrial chain. As the needs of customers are highly customized and differentiated, and the two major functions of password security authentication and encryption need to be highly bound to the business, application solution providers put forward two major tests of industry know-how and service consistency. Therefore, in the subsequent evolution of the industry, the bank infers that manufacturers based on industry-specific application solutions will continue to benefit from the moat that has been built for a long time; and in the path of the password to the standard, the industry will usher in a new atmosphere of competition. Different from the pattern of the traditional encryption industry, in the blue ocean market where data elements bring full blossom, the boundaries between the upstream and middle reaches of the password industry chain manufacturers are further blurred, and are expected to build a moat with high business viscosity in the new track. The derivation of the new track in the encryption industry essentially brings about differences in data types and transfer methods, while password manufacturers are still the core competitiveness for the know-how of customer business. The bank believes that in the current new track (Internet, Internet of cars, Internet of things, electricity, medical, etc.), the new track business through the layout of cards may become the "winner" of the blue ocean market.
Risk Tips:The competition in the industry intensifies; the policy falls short of expectations; and the product promotion falls short of expectations.