Main points:
Network security incidents occur frequently, and data security has become the top priority
On March 24, at a regular press conference, the Ministry of foreign affairs mentioned the report “prelude to cyber warfare: the NSA (apt-c-40) launched indiscriminate attacks on the world for more than ten years” released by 360. The report shows that China has long been attacked by network traffic hijacking from the United States. Such ATP attacks directly threaten the digital security of important industries and units such as the Chinese government, medical institutions, scientific research institutions, educational institutions and leading enterprises. According to the report of check point research, the global cyber attacks reached a new high in 2021, with a year-on-year increase of about 50%, of which the average number of attacks per institution in Q4 exceeded 900, and the top three in the hardest hit areas were education / research, government / military and communication institutions. In November 2021, the national Internet Emergency Center also found that it had organized to steal the source code of China’s information systems in important fields such as finance and medical treatment and sell them abroad. We believe that the current global social network attack has entered the normalization stage. With data resources becoming the core strategic resources, data has become the target of a new generation of competition and control, and the development of network security technology is becoming more and more important.
The barrel effect of network security is prominent, and systematic attack and defense will become the mainstream
Network traffic hijacking attacks mostly occur in the process of users browsing web pages, including the steps of users initiating HTTP requests, DNS resolution, server response, etc., which will pass through multi-layer devices such as user terminals, routers and operator servers. In view of the huge number of devices and uneven quality, network traffic hijacking attacks only need to attack the weakest point to achieve their purpose. Because network security is a field of barrel effect, the key is to realize all-round defense for the improvement of short board. According to the data of the information and Communications Institute, more than 50% of the downstream users of network security in China are concentrated in the three industries of government, education and medical treatment. We believe that at present, network security has not been paid attention to by the whole industry, and some users still use the past “compliant products”. In the future, China not only needs to pay attention to the data storage security of key industries, but also needs to comprehensively upgrade the software and hardware of the protection of data flow in the whole industry, so that they can cooperate with each other to achieve systematic actual attack and defense.
Digital economy ushers in a period of development, and data security is the key to ensure stable development
The 14th five year plan for the development of digital economy promotes the digital economy to the national strategic level. Data has become the core strategic resource. The application and value mining of data in various industries are improving, and the network security industry that escorts data will also become the focus of development. We estimate that the new infrastructure plan of “computing from the east to the west”, which is currently the focus of China’s development, will bring the construction of one million IDC racks, and the number of data transmission, computing and storage may rank first in the world Beijing Vastdata Technology Co.Ltd(603138) the demand for network security will grow exponentially, which is also the key to establish a data element circulation market in the future.
Investment advice
Network security: Qi An Xin Technology Group Inc(688561) , Sangfor Technologies Inc(300454) , Topsec Technologies Group Inc(002212) , Dbappsecurity Co.Ltd(688023) , Venustech Group Inc(002439) .
Fintech and Xinchuang: Grg Banking Equipment Co.Ltd(002152) , Yusys Technologies Co.Ltd(300674) , Hundsun Technologies Inc(600570) , Inspur Electronic Information Industry Co.Ltd(000977) .
Industrial software: Zhejiang Supcon Technology Co.Ltd(688777) , dingyang technology, Shanghai Baosight Software Co.Ltd(600845) , Zhejiang Heda Technology Co.Ltd(688296) .
Artificial intelligence: Pci Technology Group Co.Ltd(600728) , Iflytek Co.Ltd(002230) , Zhejiang Dahua Technology Co.Ltd(002236) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Opt Machine Vision Tech Co.Ltd(688686) .
Smart car: Thunder Software Technology Co.Ltd(300496) , Arcsoft Corporation Limited(688088) , Huizhou Desay Sv Automotive Co.Ltd(002920) , Autel Intelligent Technology Corp.Ltd(688208) , China Transinfo Technology Co.Ltd(002373) .
Risk tips
1) the epidemic situation intensifies and reduces the expenditure of enterprise informatization; 2) Fiscal and monetary policies are lower than expected;
3) the fluctuation of supply chain increases, which affects the development of science and technology industry.
