360 Security Technology Inc(601360) (601360)
China’s leading Internet and security service provider gave a “buy” rating for the first time
As a leading Internet and security service provider in China, the company is expected to achieve rapid development. We predict that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.546 billion, RMB 3.029 billion and RMB 3.612 billion, and EPS will be RMB 0.22, 0.42 and 0.51 per share. The current share price corresponds to 55.3, 28.2 and 23.7 times of PE from 2021 to 2023. The PE of the company is lower than the average level of comparable companies in the industry. It is covered for the first time and rated as “buy”.
Deeply cultivate the field of network security and build a large security ecosystem
Founded in 2005, the company is deeply engaged in the field of network security. It has successively launched 360 security guards, 360 mobile phone guards, 360 security browsers and other security products. After returning to the A-share market in 2018, the company built a distributed intelligent security system – “360 security brain”, and built an overall defense strategy system in the era of great security. In September 2019, the company released government enterprise security 3.0 to build a large security ecosystem. In August 2020, relying on its own practice and accumulation in the field of network security for more than ten years, 360 built a framework system of network security capability in a new era to deal with new network threats.
The reserve of cutting-edge talents is sufficient, and the technical strength is leading in the industry
The company has the most powerful “white hat corps” in the eastern hemisphere, and is the company with the most vulnerabilities and apt in the world. Security experts play a decisive role in discovering advanced network threats. The company has established 14 research teams, with more than 200 security elite teams and more than 3800 security expert teams. It is the largest security innovation center in Asia Pacific and has world-class vulnerability mining, attack and defense capabilities.
The government enterprise business has been fully launched and is expected to become a new strategic growth pole
At present, the company has carried out network security cooperation with 90% of central ministries and commissions, 72% of central enterprises, 95% of large financial institutions and millions of small and medium-sized enterprises. Since 2019, 360 government enterprise security group has successively served the construction and operation of security infrastructure in Chongqing, Tianjin, Qingdao, Hebi, Suzhou and other cities, setting a landmark national security service model.
Risk tip: the impact of the epidemic on the company’s business and the expansion of government and enterprise safety business are not as expected.
