360 Security Technology Inc(601360) (601360)
Core view
Event: 360 Security Technology Inc(601360) Shanghai Kaijin information, a wholly-owned subsidiary, as the leader, participated in the public bidding of "informatization and supporting facilities project of Shanghai urban safety brain project" in the form of consortium with Shanghai Post and Telecommunications design consulting and Research Institute Co., Ltd. and won the bid successfully.
The main construction contents of the bid winning project include: the construction of 1 urban safety brain, 3 National enabling platforms, 6 national capacity centers, basic support environment construction and related supporting projects, including Shanghai urban safety brain operation center; Shanghai national big data security shooting range, Shanghai Branch of National Engineering Laboratory of big data collaborative security technology, and national new generation artificial intelligence open innovation platform; Localization security center, Shanghai national network security talent training center, new infrastructure network security risk Exhibition Center, public security service center, security vulnerability operation center and industrial Internet Security Center; Foundation support environment and supporting works.
Network security enables the transformation of Shanghai's digital industry. 360 Security Technology Inc(601360) will focus on the construction of "one urban safety brain", "three national enabling platforms" and "six national capacity centers" with the bid inviter, and will make full use of the good foundation of Shanghai in the fields of big data, talents, science and technology to build a three-dimensional urban Cyberspace Security operation system through all-round and multi-level in-depth cooperation with the bid inviter, Empower the basic security capabilities such as network security, data security, Internet of things security, supply chain security and cloud security to the urban operation of Shanghai, and provide a new driving force for the corresponding digital industries in Shanghai. After the completion of the project, it will help to further improve the competitiveness and influence of 360 Security Technology Inc(601360) in the government enterprise security market, further improve the regional node layout of the security brain, continuously improve the practical effect of regional empowerment, and realize the integrated development of security and industry.
The winning project is expected to create a landmark urban safety service model. As early as March 2020, 360 Group signed a strategic cooperation agreement with Putuo District, Shanghai, and 360 Shanghai Grand security headquarters and East China regional headquarters landed in Putuo. Since focusing on the layout of the "government + enterprise" market, the company's new generation security capability framework with "security brain" as the core has been distributed and constructed in Chongqing, Tianjin, Qingdao, Hebi, Shanghai, Suzhou, Zhengzhou, Guizhou and other places, covering four municipalities directly under the central government. The strategic cooperation with Shanghai Putuo District government is an effective verification that 360 government enterprise security group takes security as the driving force to improve the efficiency of modern governance. At the same time, with the help of Shanghai's international exchange window effect, give full play to the exemplary role of model cases of network security government enterprise cooperation, and provide convenience for foreign exchange and technical achievement display and cooperation.
Investment suggestion: it is estimated that the company's revenue from 2021 to 2023 will be RMB 12.306 billion, RMB 14.847 billion and RMB 17.694 billion respectively, with a year-on-year growth rate of 5.76%, 20.90% and 19.12% respectively; The net profit attributable to the parent company was RMB 1.751 billion, RMB 2.166 billion and RMB 2.648 billion respectively, with a year-on-year growth rate of - 39.89%, 23.70% and 22.28% respectively. The EPS from 2021 to 2023 were 0.25, 0.30 and 0.37 respectively, and the corresponding PE were 48.8, 39.5 and 32.3 respectively. We comprehensively give the company a target market value of 150 billion yuan in 2022, corresponding to a share price of 20.99 yuan, maintaining a "buy" rating.
Risk warning: market competition intensifies; New product development is not as expected; Strategic advancement is less than expected;
