\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 360 360 Security Technology Inc(601360) )
Internet leader with built-in "network security" attribute. The company builds an Internet Ecosystem driven by core security technology, with security products and service system as the carrier and commercial business as the guarantee. We have been deeply engaged in the Internet security industry for more than ten years to build "free anti-virus" into a business form of great security ecology and all-round protection. "Free security products + commercial realization" brings three-dimensional growth in revenue, user base and traffic entrance. Internet security products are the main carrier for the company to serve the majority of Internet users. With free security products, the company has accumulated rich market experience and data in terminal security; Based on security products, it has continuously expanded information acquisition products including 360 navigation and 360 search, and content products represented by information flow product.
The Internet attribute enables the network security track, and the security business of government and enterprises has opened the second steady growth curve. Internet security products are the main carrier for the company to serve the majority of Internet users. Based on security products, the company has broadened the scope of the company's Internet business services; With the strategy of providing free services, while attracting many users, enhance the accurate grasp of user portraits, and improve user stickiness and the company's ability to commercialize accurate services. At the same time, actively try business innovation and transformation, and take the security assistance of government and enterprises as the second growth curve. In 2019, the company released government enterprise security strategy 3.0, starting from national key cities, key industries and key infrastructure industries, and layout the "government + enterprise" market through self construction, investment and M & A.
"360 safety brain" enables the safety of government and enterprises, constructs a four-tier process system, and faces the 60 billion star sea. The company's government enterprise security business includes several fist products such as local security brain and terminal security, as well as safe operation and services. The company has built a four-layer response process centered on the safety brain, covering the whole ecology. The company released the Chinese standard safety brain in 2022. The similar composition between cities promotes the coverage speed of "urban safety brain". According to the company's bid winning cases, since the company launched the government enterprise security business in 2019, the maximum bid winning amount of a single project in all bid winning projects is 446 million, the minimum amount is 10 million, the average amount is 181 million, and the median value is 236 million. Combined with 297 prefecture level cities in China, the overall market space is about 60 billion yuan.
"Internet Security + government and enterprise security" two wheel drive, "basic disk" superimposes "high growth". The large number of users, traffic and data brought by Internet business has effectively promoted the rapid growth of the company's network security business. According to the company's 2021 annual report, the revenue from security business and other businesses was about 1.381 billion, a year-on-year increase of 70.91%. In 2021, security and other businesses accounted for 12.72% of the company's revenue, nearly doubling year-on-year growth compared with 6.96% in 2020.
Investment suggestion: it is estimated that the company will achieve a revenue of RMB 12.665/14.565/15.876 billion and a net profit attributable to the parent company of RMB 1.077/11.85/1.298 billion in 22-24 years. The current market value corresponds to 53 / 48 times of PE in 22-23 years. Considering that the company is turning to the network security track in an all-round way, we believe that the company has the dual attribute of "Internet + network security", which is scarce in the industry. Considering the future incremental space of the market, we believe that the company has broad growth space. For the first coverage, give a "recommended" rating.
Risk warning: the risk of repeated epidemic; Digital transformation is less than expected; The increased demand for project customization brings the risk of decline in gross profit margin.
