\u3000\u30 Fawer Automotive Parts Limited Company(000030) 29 Jilin University Zhengyuan Information Technologies Co.Ltd(003029) )
Jilin University Zhengyuan Information Technologies Co.Ltd(003029) is a leading enterprise in the field of electronic authentication and trusted data assurance in China. Since its establishment in 1999, the company has always taken password technology as the core, carried out the R & D, production, sales and services of information security products, and provided security solutions such as password based trusted identity authentication and trusted data protection. It is the production fixed point of the first batch of commercial password products in China. Jilin University is one of the main sponsors of the company, and the company has solid support in talent and technology.
The prosperity of the industry continues to rise: during the 14th Five Year Plan period, the digital economy continues to increase, and the importance of security will gradually highlight. IDC predicts that the compound growth rate of China's security software market will reach 21.2% from 2021 to 2025, and the overall scale will reach 26.1 billion yuan by 2025. Zhiyan consulting predicts that the compound growth rate of China's PKI market from 2016 to 2020 will be about 23%, and the scale will reach 5.6 billion yuan in 2020. Under the influence of policies and regulations such as the password law of the people's Republic of China and ISO 2.0, the localization and popularization of cryptographic algorithms will still bring more space for the electronic authentication and trusted data protection industry with password as the core. While traditional customers in the industry, such as the government and the military, maintain large demand, the landing of new applications such as the Internet of things will continue to open up the industry space.
The company has entered a wide harvest period: long-term cultivation and foreshadowing, the establishment of deep trust and high reputation, and the release of demand from many downstream industries, providing a large imagination space for the company. The company has been deeply engaged in the industry for 20 years, participated in the construction of more than 1000 well-known large and medium-sized information security projects in China, and has accumulated 40 + customers from central state organs and ministries and commissions. The customer resources cover industries and fields such as government, military, military industry, finance, energy and telecommunications, with rich industry experience; The company's technical strength related to information security is excellent, and its technical level has been recognized by the industry; The company is one of the earliest and most qualified enterprises in the same industry. The company will make full use of many years of experience in password technology to launch data security compliance intelligent control platform and related data security products as soon as possible. In the future, data security business will become one of the industrial pillars of the company's key development and provide new growth power for the company.
Investment suggestion: as the cornerstone of future digitization, the information security industry has ushered in huge room for improvement in its related markets, and is expected to enter a period of rapid growth in the next five years. As a leading enterprise in China's electronic certification industry, the company will fully benefit from market development; The long-term layout of the company is about to enter a wide harvest period. We predict that the net profit of the company from 2021 to 2023 will be RMB 140 / 180 / 260 million, corresponding to PE of 37 / 28 / 20x. If the impact of equity incentive expenses of RMB 19 / 28 / 13 million is excluded, the company's reference net profit from 2021 to 2023 is RMB 160 / 21 / 270 million, corresponding to PE of 32 / 24 / 19x. There is a large room for rise in the valuation of the benchmarking company. The target price of RMB 40.67 is given by integrating the absolute valuation and relative valuation results. "Buy" rating is given for the first time.
Risk tip: major changes have taken place in industrial policies, the development of digital economy is less than expected, and the market competition is intensified.
