Qixingxingchen (002439) 2019 Third Quarterly Report Review: Revenue Growth Season-by-Quarterly Boosts Industry Prosperity and Continues to Assist

Qixingxingchen (002439) 2019 Third Quarterly Report Review: Revenue Growth Season-by-Quarterly Boosts Industry Prosperity and Continues to Assist

The core point of view is benefiting from the growth of the company’s core business brought by the increased tolerance of industry demand. We are optimistic that the company, as an industry leader, will continue to benefit from downstream demand and market share.

Maintain 2019 EPS forecast of 0.

74/0.

89/1.

06 yuan, corresponding to PE45 / 38 / 31X, maintain “Buy” rating.

   Performance is in line with expectations, and revenue growth has increased quarter by quarter.

The company achieved revenue of 15 in the first three quarters of 2019.

8.3 billion, +21 a year.

57%; net profit attributable to mother 0.

97 ppm, at least -17.

93%; deduct non-net profit 0.

78 ‰, +239 per year.

18%; the company’s growth rate of non-deduction is better than that of non-maintained, mainly due to the impact of the recognition of investment income of subsidiaries in the same period last year.

  By quarter, the company achieved revenue of 7 in Q3.

01 ten percent, +24.

77%, income growth has gradually improved.

  On the expense side, the sales / management / R & D expense ratios in the first three quarters were 27.

63% / 7.

24% / 27.

74%, compared with -1 in the same period last year.

78% /-1.

27 pieces / -2.

60pcts, the company’s cost optimization results are significant.

   Waiting for insurance 2.

0 drives industry demand and the company’s core product market share leads the expected full return.

May 13th, waiting for insurance 2.

0 is officially released and implemented at least in December this year. It is expected that the medium and long-term will lead to an increase in information security 上海夜网论坛 investment.

According to the latest data released by CCID, the company’s market share of IDS / IPS, UTM, SOC, data security and other products has ranked first for many years, reaching 16 in 2018.

6%, 21.

4%, 23.

5%, 9.

9%.

The company strives to fully benefit from such guarantees2.

Expansion of industry demand brought by 0.

   Security services and result-oriented overall solutions have become a development trend, and the prospects for security operations are promising.

On September 27, the “Guiding Opinions on Promoting the Development of the Cyber Security Industry (Consultation Draft)” drafted by the Ministry of Industry and Information Technology proposed that the concept of “security as a service” is advocated for the characteristics of cyber security with strong professionalism, fast technology and difficult applicationTo encourage network security companies to shift from providing security products to providing security services and solutions.

As a total solution for the security operation business, the company has now formed more than 20 city-level security operation centers in the country, and the new operation business orders in the first half of this year exceeded 100 million US dollars.

We expect the company’s security operations center business to continue to advance, with orders expected to reach $ 400 million.   Risk factors: equal insurance 2.

0 Landing was less than expected; industry competition intensified; the construction of security operation centers was less than expected.

   Investment suggestion: Benefiting from the expansion of the industry’s demand for tolerance and the growth of the company’s core business, we are optimistic that the company, as an industry leader, will continue to benefit from downstream demand and market share.

We maintain our EPS forecast for 2019-2021.

74/0.

89/1.

06 yuan, corresponding to PE45 / 38 / 31X, maintain “Buy” rating.