Investment Rating - The investment rating for the company is "Buy-A" with a target price of 57.83 CNY over the next six months [5]. Core Insights - The recent release of the "Key Information Infrastructure Commercial Password Usage Management Regulations" is expected to significantly promote the password industry, clarifying regulatory responsibilities, establishing reporting timelines, and ensuring funding for security assessments [2][3]. - The company has a comprehensive range of password products from chips to complete systems, positioning it to benefit from the anticipated growth in industry demand driven by new regulations [3]. - The company is actively developing quantum-resistant password products and engaging in stablecoin-related businesses, which are seen as critical areas for future growth [4][10]. Summary by Sections Regulatory Impact - The new regulations clarify the roles of various regulatory bodies, which is expected to accelerate the development and penetration of the password industry [2]. - A specific reporting deadline for operators to report on the use and security assessments of commercial passwords is established, promoting regular evaluations and driving product sales [2]. - Financial support for security assessments is mandated, which is crucial for enhancing demand for related products [2]. Company Positioning - The company has launched several pioneering products in the password security space, including the first domestic security level three password card and machine, as well as the "SansecHSM" [3]. - The successful mass production of the self-developed password security chip XS100 and the certification of various IoT-specific chips indicate the company's strong product pipeline [3]. Future Growth Areas - The company has developed a full suite of quantum-resistant password products and is involved in pilot applications across various sectors, including finance and telecommunications [4][9]. - The company is also focusing on stablecoin applications, recognizing the importance of password technology in supporting digital currencies for cross-border payments [9][10]. - Revenue projections for the company indicate significant growth, with expected revenues of 6.65 billion CNY in 2025, increasing to 9.05 billion CNY by 2027 [10].

Group 1 - The 11th China (Shanghai) International Technology Import and Export Fair (referred to as "the Fair") will be held from June 11 to 13 at the Shanghai World Expo Exhibition and Convention Center, covering an exhibition area of 35,000 square meters [1][3] - The theme of this year's Fair is "Open Cooperation: Empowering New Quality Productivity and Sustainable Development," featuring a main exhibition area, a provincial exhibition area, and four specialized technology exhibition areas focusing on commercial cryptography, green energy, intelligent marine engineering, and consumer technology [3] Group 2 - The Hong Kong University of Science and Technology Shanghai Center (referred to as "HKUST Shanghai Center") will showcase several cutting-edge technologies, including a full-scene intelligent endoscope system and a digital meteorological service innovation laboratory, marking its debut at the Fair in 2025 [4] - HKUST Shanghai Center will present six latest research outcomes and quality projects related to artificial intelligence, robotics, and sustainable development, aiming to promote technology transfer and industry-academia collaboration in the Yangtze River Delta region [4] Group 3 - The TI (Temporal Interference) neural modulation therapy, a non-invasive brain deep stimulation technology, will be showcased, which effectively regulates neural activity and has therapeutic effects on conditions such as Parkinson's disease, insomnia, depression, and anxiety [8] Group 4 - The Shanghai Computer Software Technology Development Center, one of the first commercial cryptography testing institutions in China, will present its latest achievements, including a blockchain intelligent vulnerability detection system with a detection accuracy of 94% for high-risk items [12][15] - The center has established several key facilities, including a generative artificial intelligence quality inspection center and a quantum software technology research center, contributing to the development of industry standards in quantum computing [20] Group 5 - Shanghai CA, a leading third-party electronic certification service provider, will showcase various cryptographic products and applications, focusing on digital identity, data circulation, and cross-border trust services [21][24] - The "XINMI全栈密码服务平台" will be highlighted, which provides unified cryptographic security services based on domestic CPU capabilities, aiming to meet the core needs for data security and business compliance in the digital age [28]