Event overview
On March 7, 2022, the Ministry of industry and information technology issued the guidelines for the construction of Internet of vehicles network security and data security standard system, proposing to complete the development of more than 100 standards by 2025 and form a relatively complete Internet of vehicles network security and data security standard system.
Core view:
The construction of standards is imminent, with emphasis on the importance of data security
Internet of vehicles security is an important foundation for the development of intelligent vehicles, and the construction of standards is imminent. The guide proposes that by the end of 2023, a standard system for Internet of vehicles network security and data security will be preliminarily established, and more than 50 urgently needed standards will be developed; By 2025, a relatively complete standard system for Internet of vehicles network security and data security will be formed, and more than 100 standards will be developed.
The importance of data security is prominent and the promotion speed is accelerated. In June 2021, the science and Technology Department of the Ministry of industry and information technology once posted the guidelines for the construction of network security standard system of Internet of vehicles (intelligent network connected vehicles) (Exposure Draft). Compared with the time of solicitation, the title of the guidelines added “data security” with emphasis on data security. The guide further subdivides the data security standard system into five items: General requirements, classification and classification, exit security, personal information protection and application data security, with a total of 18 items, of which two standards have been issued (data security technical requirements and user personal information protection requirements), and six standards are under development.
The security market ushers in new opportunities, and the network security company unlocks the Internet of vehicles market
Pay attention to the security sub fields such as terminal security, Internet of things security, communication security, password security and identity authentication. The subdivision standard construction of the guide will focus on six major parts: basic commonness, terminal and facility network security, Internet connection communication security, data security, application service security, security guarantee and support, involving multiple network security sub tracks, and the network security companies of relevant subdivision tracks are expected to benefit.
Major security manufacturers have a layout in the field of Internet of things security, and promote the accumulation of technology in the field of Internet of vehicles security. Internet of things security and Internet of vehicles security have common products and services, and major security enterprises have layout. In terms of Internet of vehicles service platform security, the current Internet of vehicles service platform adopts cloud computing technology, and security manufacturers have technical advantages in cloud platform security protection and safe operation. In terms of mobile intelligent terminals, mobile applications are based on general architecture, and security reverse technology and security protection technology are relatively mature. Security companies have field advantages. At present, many vehicle manufacturers have cooperated with security companies to jointly carry out application reinforcement and penetration testing.
Speed up the landing of digital security platform, and focus on the national team Navinfo Co.Ltd(002405)
Navinfo Co.Ltd(002405) as the “national team” of high-precision map, took the lead in landing the construction order of digital security platform, which is the priority beneficiary of data security construction of Internet of vehicles. The data security platform has signed four overseas leading OEMs. In November last year, with the signal of strong data compliance and supervision, the company quickly won orders from many car factories with its “national team” identity + thick accumulation of map data processing capacity, and the volume signal of relevant business was obvious. Up to now, Navinfo Co.Ltd(002405) has signed business orders related to data security with Daimler, Volvo, Ford and BMW.
Digital security business has strong profitability and broad prospects. The digital security business will realize the sustainable profit model of platform construction fee + subscription service fee, and is expected to be horizontally extended to more OEMs. In addition, the company’s map and data related businesses have strong synergy. After winning the cooperation with core customers, it is easy to extend the business vertically and further enhance the value of single customers.
Investment advice
Navinfo Co.Ltd(002405) as a leader in automotive intelligence with “national team background”, it will give priority to the promotion of the construction of data security standards for the Internet of vehicles. The maintenance profit forecast is as follows: it is estimated that the operating revenue of the company from 2021 to 2023 will be 3.0/39.7/5.21 billion yuan, and the earnings per share (EPS) will be 0.05/0.17/0.34 yuan, corresponding to the closing price of 14.46 yuan / share on March 8, 2022. PE will be 289 / 85 / 43 times and PS will be 11.4/8.6/6.6 times respectively, maintaining the “buy in” rating of the company. Other beneficial objects include: Westone Information Industry Inc(002268) , Dbappsecurity Co.Ltd(688023) , Sangfor Technologies Inc(300454) , Xiamen Meiya Pico Information Co.Ltd(300188) , Beijing Infosec Technologies Co.Ltd(688201) , etc.
Risk tips
1) risk of new product / business promotion falling short of expectations. 2) The risk of standard construction falling short of expectations. 3) The risk of macroeconomic downturn is that the development of smart car industry is less than expected.
