\u3000\u3 Guocheng Mining Co.Ltd(000688) 561 Qi An Xin Technology Group Inc(688561) )
Event overview
Qi An Xin Technology Group Inc(688561) 419 held the R & D platform strategy conference. Qi Xiangdong, chairman of the company, announced that the existing eight R & D platforms such as “Kunpeng”, “Noah” and “Dayu” have entered the state of full mass production to help enterprises solve the problems encountered in digitization. In the future, under the platform strategy, all R & D platforms will be opened to ecological partners in succession.
The eight platforms were completed and put into operation, and the business was carried out to reduce costs and increase efficiency
Since 2017, the company has adhered to the “strong R & D” strategy and built a product R & D platform. By the end of 2021, the company has basically completed eight R & D platforms. Through the R & D platform, the company can use the “LEGO” method for product project development: the R & D team integrates the functional modules on the platform to form products. Such development mode is conducive to reducing the company’s dependence on R & D personnel and shortening the project duration. According to the performance forecast of the company in 2021, the revenue of the company’s data security and privacy protection products (including cloud security products) exceeded 1.1 billion yuan, with a year-on-year increase of more than 50%, which is the result of the platform R & D strategy.
Open platform enables digitalization, creates ecology and improves market share
Digital enterprises usually encounter five major problems: 1) the “enclosure curse” of burning money to subsidize users; 2) The “Curse of human efficiency ratio” in which the growth rate of personnel exceeds the growth rate of revenue; 3) Overseas experience is not acclimatized to the “imported curse”; 4) Standardized products cannot meet the “Curse of standardization” of personalized needs; 5) It is difficult to upgrade iterations and lacks the “upgrade curse” of continuous innovation. Because of the high trial and error cost of b-end business, five major problems have become a stumbling block to the development of Chinese tob enterprises. According to the data of venture state, Chinese tob technology enterprises account for 5% of the total market value of technology enterprises, while the United States accounts for 50%. The company’s eight R & D platforms can effectively deal with the five magic spells: 1) speed up R & D through the platform, reduce trial and error costs, and solve the “enclosure curse”; 2) Reduce repeated development through the platform, save manpower and solve the “Curse of human efficiency ratio”; 3) Solve the “imported curse” through the company’s local data and experience; 4) Solve the “Curse of standardization” through the modular production of the platform; 5) Reduce the upgrade cost through the expansion ability of the platform, and realize smooth iteration to solve the “upgrade curse”. The company is expected to announce detailed eco partner certification standards at this year’s BCS conference and open the platform access application channel. We believe that in the future, due to factors such as overseas scale reduction and China’s epidemic, the operation of science and technology enterprises will pay more attention to cost control, and the five major problems will be more prominent. Open platform interface is conducive to digital enterprises to expand their business at low cost. Due to the compatibility problem, after using the company’s R & D platform, ecological partners have the power to purchase the same series of network security equipment, which is conducive to the company to further improve the market share. According to the data of prospective industry institute in 2020, in the field of network security equipment, Qi An Xin Technology Group Inc(688561) city occupies the second place, accounting for 21.3%, and there is still a large room for improvement. The increase of market share will also help the company build a more comprehensive and systematic attack and defense and improve the competitiveness of products.
In the era of digital economy, network security is becoming more and more important
The 14th five year plan for digital economy marks that China has entered the era of digital economy. According to the calculation of the school of public administration of Tsinghua University, the scale of digital economy is expected to reach 50% of GDP during the 14th Five Year Plan period. As network security plays a role in ensuring the safe operation of data related industries and is an essential part of the digital economy, its industrial scale will also rise. The state has also promulgated a series of policies to ensure the expenditure of Chinese government and enterprises on network security. For example, the regulations on the protection of key infrastructure put forward high requirements for the network security of telecom operators, electric power, water conservancy and other infrastructure, boosting the network security expenditure momentum of relevant institutions. According to IDC data, China’s network security related expenditure is expected to reach US $21.5 billion in 2025, with a five-year compound growth rate of about 20.5%.
Investment advice
Qi An Xin Technology Group Inc(688561) in the past, the R & D investment in the platform was high, and the market share of the network security industry remained the first. It is qualified to realize the large-scale growth of revenue and profit in the future. Under the catalysis of policies such as “counting from the east to the west”, the demand for network security products and services continues to release. At the same time, the platform strategy is conducive to the company’s development ecology and expand its customer base. We expect the company to achieve revenue of RMB 5.81118137/11.397 billion from 2021 to 2023, with a year-on-year increase of 39.6% / 40.0% / 40.1%; The net profit attributable to the parent company was -552105/383 million yuan, with a year-on-year increase of – 65.2% / 119.1% / 263.9%, maintaining the “buy” rating.
