Data and algorithm security supervision is further strengthened, and third-party data security manufacturers with good political literacy and technical reserves welcome industrial opportunities. On January 19, the nine ministries and commissions jointly issued a document to regulate the development of platform enterprises. Following the promulgation and implementation of the anti-monopoly law and other laws, they once again focused on the compliant operation of Internet enterprises, emphasizing the prevention of excessive data collection, combating black market data trading, big data killing and other abuses. On the premise of strictly protecting trade secrets such as algorithms, support third-party institutions to carry out algorithm evaluation, guide platform enterprises to improve the transparency and interpretability of algorithms, and promote algorithm fairness. Platform enterprises are required to deeply implement the network security level protection system, explore and carry out data security risk situation monitoring and notification, and establish an emergency response mechanism. Pay attention to the investment opportunities of Westone Information Industry Inc(002268) and other first mover data security manufacturers with good shareholder background and complete solutions. Data security will become the most explosive direction of the network security industry in 2022!
With a clear attitude, strengthen the supervision of C-end Internet enterprises and encourage B / g-end computer companies to expand and strengthen the profound industrial opportunities behind the digital economy! Antitrust’s strong supervision on the business expansion and business model of C-end Internet manufacturers is in sharp contrast to the “14th five year plan” for digital economy development, which encourages B / g-end manufacturers to expand and strengthen the digital economy. The main operating costs of computer companies include management expenses, R & D expenses and other personnel expenses. In the past, giants have continuously expanded their enterprise boundaries with the advantages of capital, data and talents Increasing the operation cost of the IT industry and the supervision and antitrust with data and algorithms as the core may have a profound impact on the pattern of China’s IT industry, and pay attention to the long-term benefit opportunities of B / g-end enterprises.
Data and algorithm security has become the core of Internet enterprise supervision, which will have a far-reaching impact on its profitability, business model and growth boundary. The personal information protection law, data security law and antitrust law constitute the three pillars of Internet supervision. The industry governance is still evolving, and there is still uncertainty about the impact on its business model and profitability. Sorting out the direction of data security supervision may be beneficial to understanding the investment in the Internet industry. The personal security law is similar to the European general data protection regulations (gdpr) in the framework of ensuring user privacy, requiring Chinese companies to ensure compliance in data storage and processing. On the cost side, Internet enterprises will make more investment to meet compliance requirements. On the business side, the original extensive operation loopholes such as “excessive data collection” and “consumer price discrimination” will be cracked down, and the regulatory power will be used to offset the inhibitory effect of capital pursuit of non-compliance income and super platform on market competition. In 2020, the anti-monopoly law was revised. At the end of the year, the central economic work conference proposed to prevent the disorderly expansion of capital. In 2021, the data security law and the personal information protection law and other policies have been implemented. In October, the Internet Information Office publicly solicited opinions on the measures for data exit security assessment (Draft for comments). It is expected that with the strengthening of users’ awareness of privacy and security, The spontaneous demand for data security of Internet manufacturers is urgent.
The overweight of regulatory policies and the accelerated application of big data drive the development of data security. The short-term 10 billion market is dominated by technical service revenue, and the long-term SaaS operation revenue is expected to reach 100 billion. We pay attention to the leaders in the field of data security Westone Information Industry Inc(002268) . Recently, data security law, customs protection regulations, personal information protection law and other laws and regulations have been intensively issued and implemented. Only from the perspective of privacy computing, a component of data security, Gartner predicts that more than 80% of Companies in the world will face at least one data protection regulation focusing on privacy in 2023, In 2024, the expenditure on privacy driven data protection and compliance technology will exceed US $15 billion worldwide. With the implementation of the data security law and the rapid development of the data trading market, KPMG expects that China’s data security technical services are expected to reach 10 billion in 2023. With the cloud of IT architecture, it will leverage 100 billion of data security SaaS operating revenue in the long term.
The opinions emphasizes cracking down on monopoly and unfair competition in the field of platform economy. In the past, giants have continuously expanded their enterprise boundaries by virtue of their advantages in capital, data and talents. Antitrust may have a profound impact on China’s IT industry pattern and pay attention to the long-term benefit opportunities of B / g-end enterprises. 1) For TOC enterprises, the impact of giants on the competitive pattern of subdivided fields by virtue of traffic advantages may be gradually improved. Typically, such as the third-party financial market, the competitive pressure faced by China stock market news and Hithink Royalflush Information Network Co.Ltd(300033) may be reduced; 2) In the competition with giants, some tob and tog enterprises often face the pressure of traffic interface, talent competition and channel promotion investment. The real implementation of antitrust will benefit the leading enterprises in many subdivided fields to a certain extent, such as Beijing Kingsoft Office Software Inc(688111) , Hundsun Technologies Inc(600570) , Glodon Company Limited(002410) ; 3) AI is entering the industrialization stage from the past algorithm competition. Manufacturers expand application scenarios through “self research + M & a”, such as Baidu Apollo open platform architecture to feed its driverless ecology. Tesla accumulates road measurement mileage through “autopilot + shadow mode”, accelerates the deployment speed of robotaxi applications, and is rapidly building barriers. Antitrust policy is expected to promote ecological diversity, Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Thunder Software Technology Co.Ltd(300496) and Iflytek Co.Ltd(002230) benefit to a certain extent; 4) It service providers will welcome broader development space. Taking the cloud computing security market as an example, Chinese IAAs manufacturers have different understanding of cloud ecology from overseas giants. They tend to establish their own security service system and continuously improve the self-sufficiency rate of standardized cloud security products. Under the background of antitrust, consumers have more choices, At the same time, the mixed cloud trend will provide broader development space for cloud security products of independent third-party manufacturers.
Investment main line:
Data security: Westone Information Industry Inc(002268) , Qi An Xin Technology Group Inc(688561) , Dbappsecurity Co.Ltd(688023) , Sangfor Technologies Inc(300454) , Topsec Technologies Group Inc(002212) ; AI： Thunder Software Technology Co.Ltd(300496) 、 Huizhou Desay Sv Automotive Co.Ltd(002920) 、 Iflytek Co.Ltd(002230) 、 Hangzhou Hikvision Digital Technology Co.Ltd(002415) ； Cloud Computing: Yonyou Network Technology Co.Ltd(600588) , Beijing Kingsoft Office Software Inc(688111) , Glodon Company Limited(002410) , Shanghai Baosight Software Co.Ltd(600845) ; Financial it: China stock market news, Hundsun Technologies Inc(600570) , Hithink Royalflush Information Network Co.Ltd(300033) , Shenzhen Sunline Tech Co.Ltd(300348) ; Government informatization: Beijing Egova Co.Ltd(300075) , Xindian software, Pansoft Company Limitid(300996) , Linewell Software Co.Ltd(603636) .
Risk tips: industry competition intensifies the risk; The policy strength is less than the expected risk; Macroeconomic risks.
