Core Insights - The 20th Central Committee's Fourth Plenary Session emphasizes the modernization of the national security system and capabilities, aiming to build a higher level of a safe China [2] - The founder of 360 Group, Zhou Hongyi, views this deployment as a fundamental guideline for advancing Chinese-style modernization, enabling steady progress in a complex environment towards the goal of national rejuvenation [2] Digital Security Challenges - The digital wave is creating new productive forces while also introducing unprecedented security challenges [2] - A new security paradigm necessitates establishing a digital security foundation, focusing on overcoming the "visibility" challenge posed by high-level and covert cyberattacks [2] - This requires the aggregation of global security big data and the application of artificial intelligence for in-depth analysis and correlation [2] Innovative Security Service Models - The new security framework calls for innovative security service models that provide practical, low-cost security capabilities to various industries [2] - This approach aims to offer inclusive and robust security guarantees for the new development pattern [2] AI and Future Security - While artificial intelligence empowers development, it also presents new challenges [2] - There is a need to develop secure large models and intelligent security agents to build a future-oriented security defense line [2] Commitment to Security - The company will deeply study and implement the spirit of the Fourth Plenary Session, focusing on overcoming key core technologies [2] - This commitment aims to ensure the security of critical information infrastructure and support the digital transformation across various industries [2]

Core Insights - The China-ASEAN Building Technology Expo showcased innovative achievements and future cooperation directions in the construction sector between China and ASEAN countries [1] Group 1: Event Overview - The expo was co-hosted by the Ministry of Housing and Urban-Rural Development, the Guangxi Zhuang Autonomous Region Housing and Urban-Rural Development Department, and the Guilin Municipal Government [1] - The event attracted numerous visitors, including professionals from various sectors, facilitating vibrant exchanges and consultations [1] Group 2: Company Highlights - New Intelligence Group presented its intelligent platform solutions for urban safety, demonstrating practical achievements and innovative collaborations across government, enterprise, and public sectors [1] - Liu Maoliang, Co-General Manager of New Intelligence Group, discussed the AI-driven practices aimed at addressing urban safety governance challenges, covering technology development, scenario implementation, and value transformation [1][4] Group 3: Technological Innovations - The exhibition featured a comprehensive smart safety management system that integrates "IoT perception - intelligent analysis - collaborative disposal," enabling real-time monitoring and precise identification of gas risks [2] - The safety model generates intelligent risk maps for urban safety, enhancing regulatory efficiency for government partners and closing safety loopholes for gas companies [2] - The indoor hazard identification accuracy has reached 82%, while the accuracy for third-party construction hazard identification has improved to 92% [2] Group 4: Community Engagement - The "Instant Hazard Identification" capability allows users to upload photos for AI-driven safety hazard recognition, supporting government inspections and self-checks by enterprises and residents [3] - The safety model generates a series of "Safety Smart Companions" that provide intelligent Q&A, regulatory standards consultation, and decision-making support for regulatory personnel, enterprise safety inspectors, and residents [3] Group 5: Future Directions - Liu Maoliang emphasized the potential of large models to address industry pain points and the company's commitment to assisting more industry partners in overcoming similar challenges [4]

Core Viewpoint - The China-ASEAN Building Technology Expo showcased innovative achievements and future cooperation directions in the construction sector between China and ASEAN countries [1] Group 1: Event Overview - The expo was held from September 15 to 21 at the Guilin International Convention Center, co-hosted by the Ministry of Housing and Urban-Rural Development, the Guangxi Zhuang Autonomous Region Housing and Urban-Rural Development Department, and the Guilin Municipal Government [1] Group 2: Company Highlights - New Intelligence Group presented its intelligent platform solutions for urban safety, attracting numerous professionals for discussions and consultations [3] - The company’s intelligent safety management system covers "IoT perception - intelligent analysis - collaborative disposal," enabling real-time monitoring and precise identification of gas risks [5] - The safety model developed by New Intelligence Group has achieved an indoor hazard identification accuracy rate of 82% and a 92% accuracy rate in third-party construction scenarios [7][8] Group 3: Technological Innovations - The "safety big model" integrates vast safety industry data and best practices, continuously iterating in industrial scenarios, and has received recognition for its innovative applications [6][8] - The "instant hazard identification" capability allows users to take photos for AI-based automatic hazard recognition, enhancing safety checks for government, enterprises, and residents [11] Group 4: Community Engagement - The model promotes a collaborative safety network involving all community members, empowering various roles in urban safety through intelligent tools and resources [11][13]

Core Viewpoint - The security industry is transitioning from a rapid integration model of general large models to a specialized and in-depth development phase, necessitating the creation of dedicated vertical large models tailored for the security field [1][3]. Industry Trends - The exploration of large models in the security sector has shifted significantly from an initial model that combined general large models with security knowledge bases and tools to a more specialized approach [3]. - The unique characteristics of the security field demand higher technical requirements, including the deep transformation and absorption of high-value professional data and the localization of expert experience [3][4]. Methodology - The "fast and slow thinking" methodology is central to 360's approach, categorizing security tasks into "fast thinking" and "slow thinking" tasks to redefine the capabilities of large models [5]. - "Fast thinking" corresponds to intuitive judgments based on vast training data, while "slow thinking" involves complex reasoning tasks that require factual knowledge and external tools [5]. Practical Breakthroughs - 360 has focused on various security tasks, aiming for specialized models that outperform general large models in practical effectiveness [6]. - The first phase involved exploring vertical model structures and training methods tailored to specific security tasks, achieving a 99.42% accuracy rate in endpoint behavior analysis [6]. - The second phase introduced a "multi-expert collaborative (CoE)" large model architecture to address the challenges of multi-model collaboration and application costs [6]. - The third phase involved the development of the RL-LoRA training framework in collaboration with Berkeley BAIR, significantly reducing training costs and improving efficiency [7]. Intelligent Agent Development - 360's intelligent agent practice has evolved through two phases, focusing on the precise implementation of complex expert experiences and enhancing autonomous decision-making capabilities [8]. - The first phase utilized a workflow platform to integrate expert experiences with large model capabilities, achieving results comparable to human experts [8]. - The second phase involved the creation of a "Monte Carlo associative tree intelligent agent," enabling strategic thinking and dynamic problem-solving capabilities [8].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - The company reported a revenue of 7.52 billion yuan for 2024, a year-on-year decline of 1.86%, and a net profit attributable to shareholders of 197 million yuan, down 0.49% year-on-year. The non-recurring net profit was 76 million yuan, a significant drop of 31.32% year-on-year [2][3]. - The company is focusing on AI and cloud services, with a new upgrade aimed at supporting large model enterprises. The introduction of the "Deep Security GPT" and the upgraded cloud services are expected to enhance operational efficiency and market competitiveness [2][7]. Financial Summary - **Revenue Forecast**: The company is projected to achieve revenues of 75.20 billion yuan in 2024, 84.13 billion yuan in 2025, and 93.74 billion yuan in 2026, with growth rates of -1.9%, 11.9%, and 11.4% respectively [3][8]. - **Net Profit Forecast**: The net profit is expected to be 197 million yuan in 2024, 346 million yuan in 2025, and 449 million yuan in 2026, with year-on-year growth rates of -0.5%, 75.6%, and 29.9% respectively [3][8]. - **Earnings Per Share (EPS)**: The EPS is projected to be 0.47 yuan in 2024, 0.82 yuan in 2025, and 1.06 yuan in 2026 [3][8]. - **Valuation**: The target price is set at 160 yuan for 2025, based on a price-to-sales ratio of 8x [2][3]. Market Position - The company has a total market capitalization of 50.44 billion yuan and a circulating market value of 33.27 billion yuan. The total share capital is approximately 4.22 billion shares, with a net asset value per share of 19.53 yuan [4][8].