360 Security Technology (SH:601360) Ge Long Hui·2025-12-23 02:32Core Viewpoint - The company, 360, has been recognized as the "Outstanding AI Application Enterprise of the Year" and its CEO Zhou Hongyi as the "Outstanding Leader of the Year" at the annual "Golden Award" selection by Gelonghui, indicating a successful transition from a traditional internet security company to an AI application platform [1] Group 1: AI Strategy and Growth - The company has established a dual strategy of "AI + Security," integrating AI technology deeply into its security business while enhancing the credibility of AI products through its security capabilities [3][4] - The global AI investment is surging, with IDC projecting a total investment of $315.8 billion in AI IT by 2024, and the Chinese market expected to grow at a compound annual growth rate (CAGR) of 35.2% over five years [3] - The company’s AI applications are focused on practical implementations rather than competing directly with major players on model size, emphasizing a more grounded approach to AI development [5] Group 2: AI Product Development - The company has developed its own large model, "360 Zhinao," which ranks among the top domestic models in comprehensive capabilities, particularly excelling in mathematical reasoning [6] - The "Nano AI Search Super Intelligent Agent" is a flagship product that leverages multi-platform information and model collaboration to execute complex tasks, positioning the company favorably in the AI search market [8] - The company’s internet value-added services generated revenue of 1.379 billion yuan in 2024, with a significant year-on-year growth of 253.25% in value-added services [9] Group 3: Security Business and Digital Transformation - The company has a strong foundation in security, having covered 1.5 billion terminals globally, and is expanding its offerings to include AI-driven security solutions for government and enterprise clients [10] - The introduction of the "360 Security Intelligent Agent" has been recognized in multiple core areas of security operations and compliance, showcasing the company's commitment to enhancing its digital security capabilities [10][11] - The company has secured contracts worth over 300 million yuan for AI and digital security projects, highlighting its strong B-end implementation capabilities [12] Group 4: Financial Performance and Future Outlook - The company reported a revenue of 2.241 billion yuan in Q3 2025, reflecting a year-on-year growth of 16.88%, indicating a significant improvement in financial performance [13] - The company is expected to achieve revenues of 8.637 billion yuan, 9.695 billion yuan, and 10.918 billion yuan from 2025 to 2027, with corresponding growth rates of 8.7%, 12.2%, and 12.6% [13] - The company maintains a high R&D expense ratio of nearly 40%, significantly above the industry average, which is expected to solidify its technological advantages [13]