JIT(003029) 光大证券·2024-11-08 01:18Investment Rating - The report maintains a "Buy" rating for the company [4][33]. Core Insights - The company is positioned to benefit from the ongoing implementation of classified protection regulations for confidential information systems, as highlighted by the recent revisions to the "Confidentiality Law" and its implementation regulations [4][33]. - The partnership with Huawei aims to create a new ecosystem for digital security through collaborative innovation and resource integration [2][20]. - The company is transitioning from a password vendor to a comprehensive security solution provider, focusing on customized and service-oriented upgrades in key sectors [3][25]. Summary by Sections 1. Strengthening Confidentiality Defense - The classified protection of confidential information systems is crucial, with regulations categorizing systems based on the sensitivity of the information they handle [13][14]. - The revised "Confidentiality Law" emphasizes the importance of technological innovation in confidentiality and the management of information systems [16][18]. 2. Collaboration with Huawei - The strategic partnership with Huawei's data storage product line was formalized on June 3, 2024, aiming to enhance digital security services [20][21]. - The long-standing collaboration has yielded significant results across various sectors, including smart cities and government cloud services [2][22]. 3. Password as a Foundation for Digital Security Innovation - The company has been a leader in the password technology sector since its establishment in 1999, providing a range of security solutions across multiple industries [3][24]. - The focus on integrating AI with commercial password technology is expected to enhance product offerings in data security and IoT [25][27]. 4. Profit Forecast, Valuation, and Rating - The adjusted net profit forecasts for 2024-2026 are 0.19 billion, 1.33 billion, and 2.53 billion respectively, reflecting a significant decrease in growth expectations [4][33]. - The projected P/E ratios for the same period are 256, 37, and 19, indicating a potential recovery as the market adapts to new regulations [4][33].