Three Six Six (601360): The layout of government and enterprise security business is worth looking forward to

Three Six Six (601360): The layout of government and enterprise security business is worth looking forward to

We recently studied 360 and exchanged information on the company’s current situation and future development.

The view is as follows: The advertising business will remain steady and increase.

Since 18 years, the company’s advertising revenue has shown a structural change. Traditional display and search advertising have declined. However, PC- and mobile-end information flow advertising has grown strongly, and its revenue share has increased. The trend is expected to continue in the future.

Since the first quarter of 19th, the growth rate of the overall advertising market has declined, and the company’s advertising business has also been affected to a certain extent. It is possible to maintain the current state in the future, but it is difficult to achieve large-scale growth in the industry.

杭州桑拿网 The gaming business will focus on head games.

Under the influence of supervision and other factors in 18 years, the follow-up will focus on the operation and agency of a game. In the past, it mainly used mobile games and page games, and then used the resources of 360PC.

The company has sufficient cash in hand and good operating cash flow.

In 19Q1, the company’s book cash exceeded 15 billion. In 18 years, its operating cash flow was close to 4 billion.

Currently, Dingzeng has raised 10.8 billion in the final review stage.

In the future, the company will exert its efforts on the C-end. This year will also be the first year of the government and enterprise market. The company will expand the government and enterprise security business in the future.

Qi Anxin previously had a deep binding with the company. In 2016, the company was its strategic shareholder, and 360 was licensed for free brand technology and data.

After the equity transfer of Qi Anxin is completed, the company enters the government and enterprise market and will expand its expenditures by 2B, 2G.

360’s advantages are mainly reflected in big data security. With the largest “white hat” legion in the Eastern Hemisphere, it pays more attention to threat-driven, security-driven and offensive and defensive capabilities.

The company has initially completed the construction of the organizational structure. The company will discuss cooperation with relatively large local governments. The focus is on seizing the big orders. The company first wins the government or city contract and gives it to the ecological company to do its core security business.

Company profit forecast and investment grade: We estimate that the company’s net profit for 2019-2021 will be 39, 43, and 51 trillion, respectively, and the corresponding EPS will be 0.

59, 0.

65 and 0.

75 yuan.

The current anniversary corresponds to a PE value of 37, 33 and 29 times in 2019-2021.

The first coverage was given a “Recommended” rating.

Risk warning: The advertising market is worse than expected, and the government and enterprise security business is worse than expected.