The Little Giant who focuses on Cyberspace: the company is a leading manufacturer of network security technology in China, focusing on the field of cyberspace (cyberspace) security. Since its establishment in 2010, the company has focused on vulnerability and vulnerability detection technology system, application security defense technology system, traceability management technology system and network space map technology system, to provide users with network security basic products, business scene security products, network space map products and network security services. In 2022, the company achieved an income of 236 million yuan, and during 2019 to 2022, the income CAGR was as high as 30%, and the net profit CAGR was as high as 37%. The Roe remained around 20%, maintaining a good profitability while maintaining high growth.
Technical strength hard core product provider: the company's technical strength is leading in the industry, and has been rated as "Top 50 Competitiveness of China's Network Security Industry" by China Network Security Industry Alliance (CCIA) for three consecutive years. The top five customers in 2022 include Qianxin, Xinhua III, Shengxin and other head security manufacturers. In terms of products, according to the IDC research report, the company's vulnerability detection products ranked third in domestic market share in 2021, and hardware WAF products ranked fifth in domestic market share in 2021. At the same time, in terms of traceability management technology system, the company was selected as the leading manufacturer of IDC China situational Awareness solution market in 2019. It has become one of the network security manufacturers with the most complete range of security detection and application security products in the industry.
The leading explorer of cyberspace map: the field of cyberspace map is the core component of the national cyberspace security strategy, and it is the "base map" of the fifth space beyond sea, land, air and space, which is of great value to national security. According to the forecast of IDC, the market size of China's cyberspace map (including asset mapping) will reach 5.46 billion yuan by 2026. In 2021, the company has jointly led the research on the national standards related to cyberspace maps; at the same time, it has undertaken the cyberspace surveying and mapping work of many key national ministries and commissions. In 2022, the company released the first cyberspace map-Cyberspace Kun Map, constructed the digital security base map of the new infrastructure, and was selected into the 2022 network security technology application pilot demonstration project of the Ministry of Industry and Information Technology, which has the advantage of clamping in this fast-growing sub-field.
Investment suggestion: the company is a leading product technology manufacturer in the field of cyber security space in China. From 2023 to 2025, we expect the company to achieve operating income of 347 million yuan and net profit of 0.76 million yuan and 1.14 billion yuan respectively. Corresponding to PE is 48-32-22 times, the first time to cover, given the "overweight" rating.
Risk hint: the company's technological innovation is not as expected; the downstream capital investment of Network'an is not as expected; the industry support policy is not as expected.