Venus Star (002439): Netan leading both economic and growth

Venus Star (002439): Netan leading both economic and growth

Based on the advantages of traditional security products, Netan leading companies with both cost-effectiveness and growth have gradually developed three strategic emerging businesses: safe city operations, cloud security, and industrial control security.

Scale, as the company accounts for a relatively large number of government and enterprise customers, it is expected to benefit in depth.

0 and safe and reliable construction; reconstruction, and through the emergence of operating service models, the industry ecology may shift to overall solution competition.

We believe that compliance with the new industry format and the expansion of the overall scale of the industry coupled with the ecological transformation, the company is expected to fully enjoy the industry’s expanded tolerance and market share to increase the dual dividend.

The company’s EPS for 2019-2021 is expected to be 0.

80/1.

01/1.

26 yuan, the first coverage, given a “buy” rating, target price of 35.

30-38.

51 yuan.

Spontaneous demand and compliance demand are driven by two wheels. The information security market with a vast network security market is mostly concentrated in party and government, special industries, and state-owned enterprise customers. This part of demand is often closely related to budget and policy requirements.

We believe that the demand cycle of government and enterprise 南宁桑拿 customers is upwards and equal protection2.

0 and other security policy drivers are strong.

In addition to compliance requirements, voluntary security requirements continue to expand.

First, frequent attack incidents accelerate the release of network security requirements. Second, new business forms represented by cloud computing, the Internet of Things, and the Industrial Internet are booming, further opening up the incremental market space.

CCID Consulting predicts that by 2021, the size of China’s cyber security market will grow to 926.

800 million, a three-year compound growth rate of 23.

twenty four%.

The industry pattern is fragmented, and the emergence of operational service models may benefit the titled companies. The narrow product chain of the traditional network security market has created a relatively fragmented industry pattern, with market participants each having their own strengths.

In the short term, due to the centralized declaration of information security companies of the science and technology board, state-owned assets have entered the security vendors one after another, and market competition may intensify.

In the long run, the rapid development of smart cities, government clouds, and private clouds has created security needs for cloud tenants, and security vendors have begun to emerge with solutions and operational services to meet customer needs.

It is not only the traditional security product market, the improvement of solutions and operational services, but also the threshold for market competition. It has long been better than the leading players in technology and comprehensive strength.

Based on general-purpose security products, Qixingchen strives for urban security operations. We believe that the company has two main focuses.

Aspect 1: The company’s market share in the four major market segments of IDP, UTM, SOC and data security products has remained the industry’s first for many years, and government and enterprise customers account for a relatively high proportion, or help it become equal insurance, special industry market increaseThe most beneficial target.

Aspect 2: Urban security operation business is a package of security services that the company has specially developed for the construction and operation of smart city informatization. It is the company’s focus in the next 3-5 years.

Last year this business order amount was about 1.

500 million, realized income of 50 million.

As of the first half of this year, the company has signed 23 urban operation projects, and we expect that the city’s operating income will gradually increase by more than 100%.

In the long term, we believe that Qixingxingchen is expected to enhance its long-term competitiveness and market share through the rapid development of urban operation business.

Target price of 35.

30-38.

51 yuan, the first coverage given a “buy” rating. We expect the company’s EPS in 2019-2021 to be 0.

80/1.

01/1.

26 yuan, PE is currently expected to be 34/27/22 times.

With reference to comparable net security companies, the 19-year PE average is 46 times, and we give 44-48 times PE in 19, corresponding to a target price of 35.

30-38.

51 yuan, the first coverage given a “buy” rating. Risk warning: Sino-US trade escalation; increased customer security spending; changes in technology stock returns; risk of goodwill impairment; risk of reduction