The company's shareholding structure is concentrated, and the total shareholding ratio of the top 10 shareholders as of 2024Q3 was 58.19%. The actual controller of the company is Chairman Quan Xiaowen. The company's main business is divided into basic cybersecurity, business scenario security, cyberspace map, network security services, and new growth pole satellite internet security. Among them, basic cybersecurity products are the company's basic products, accounting for 37% of total revenue in 2023, followed by business scenario security (20%) and cyberspace maps (17%).

The company's 2023 web application firewall hardware market accounted for 5.9%, ranking 5th; 2023H1 response and orchestration software market accounted for 7.8%, ranking 3rd. From 2019 to 2023, China's cybersecurity scale grew from 47.8 billion yuan to 69.4 billion yuan, with a CAGR of 9.77%, showing a steady growth trend.

In addition, the company has developed security products for scenarios such as public safety, power and energy, fintech, and operators, which have been widely recognized and cooperated in depth by customers.

The scale of the online space map industry is growing rapidly, and the company is a leader in online space maps. China's cyberspace map market will reach 5.46 billion yuan in 2026, and the CAGR for 2021-2026 is 48.3%, and the market size is growing rapidly. In 2023, Shengbang Security's cyberspace map products achieved revenue of 50.6774 million, an increase of 42.26% over the previous year. Shengbang Security was selected for the IDC cyberspace map related report for 3 consecutive years. The company has completed the construction of a global cyberspace asset mapping platform (DayDayMap) and officially released it. DayDayMap has five core advantages: remarkable scientific research attributes, leading IPv6 detection technology, closed-loop asset ownership, multi-dimensional asset portrayal, and vulnerability community linkage.

The company acquired Tianyu Yunan to create the third largest growth pole for satellite internet security. China's satellite internet market will reach 40.4 billion yuan in 2024, with a CAGR of 11.23% in 2021-2025. The security protection requirements faced by satellite Internet can be mainly divided into communication security requirements, network security requirements, and application security requirements. The company acquired Tianyu Yunan to enter satellite internet security and established the Starnet security product line: the Starnet security product line will focus on key business directions such as satellite Internet surveying and mapping, satellite communication encryption, satellite communication vulnerability analysis and security reinforcement to create overall solutions.

Profit forecast: As the downstream recovery of the cybersecurity industry falls short of expectations, we adjusted Shengbang Security's 2024-2026 net profit forecast to 0.055, 0.072, and 0.098 billion yuan, which increased by 28.83%, 31.52%, and 36.22% respectively in 2024-2026, giving it a “buy” rating.

Risk warning: The development of cybersecurity, cyberspace maps, and satellite internet falls short of expectations.