Core point of view
The company is a leading PKI manufacturer in China, with complete information security products and service system with PKI as the core. The company's main products include PKI infrastructure products, PKI security application products and general security products. The company has established a long-term and stable cooperative relationship with customers and has all kinds of business qualifications or licenses. In 2019, the company ranked fourth in the market share of identity and digital trust software, with 8.3%, according to IDC.
The company actively constructs "Xinchuang" product system, and strengthens the layout of security video and vehicle network security market. At present, security incidents occur frequently in the fields of video surveillance and vehicle networking, and the certificate-based strong identity authentication PKI system is expected to be effectively applied in the field of vehicle networking and security video security. The company has carried out cooperation with SAIC in the field of vehicle network security. In addition, the Ministry of Public Security is gradually promoting video security construction, and the company is expected to benefit as a leading manufacturer of PKI.
The zero-trust solution has landed and has broad prospects for development. Zero trust leads the security architecture from "network centralization" to "identity centralization". Its essence is identity-centered access control, which has gradually become the mainstream security architecture in the digital age. In November 2020, the Ministry of Industry and Information Technology issued the "announcement on the pilot demonstration list of Network Security Technology applications in 2020". Among them, the project "Aviation Industry Business Network Zero Trust Security Management platform" jointly declared by the company and AVIC Jin.com (Beijing) Electronic Commerce Co., Ltd., was successfully selected into the category of "New Information Infrastructure Security-Industrial Internet Security". In the context of the full application of the cloud format, the zero trust solution is expected to lead the company to usher in a new round of growth.
Financial Forecast and Investment suggestion
By slightly adjusting the income growth rate and expense rate, we give the company a net return profit of 0.88pm 1.15pm for 20-22 years (the original net profit for 20-22 years is estimated to be 0.93pm 1.32pm), and the corresponding EPS for 20-22 years is 0.450.59 EPS 0.82 yuan (the original EPS for 20-22 years is 0.771091.37 yuan). The results show that the rate of income growth and expense rate are slightly adjusted, and the net return profit for 20-22 years is 0.88 yuan 1.15 million respectively (the original net profit for 20-22 years is 0.93 pm). According to the comparable company's 21-year PE level, the corresponding 21-year PE is 52 times, and the target price is 30.68 yuan, maintaining the buy rating.
Risk hint
The landing of the policy is not as expected; the risk of worsening competition in the industry, etc.