Tianrongxin, a listed company that has ranked first in the domestic firewall market for 22 consecutive years, released its annual report on April 29, with a revenue of 3.352 billion yuan in 2021, of which the revenue of network security monomer business reached 3.313 billion yuan, an increase of 36.42% year-on-year. Careful decomposition of the financial report will find that with the forward-looking layout and hard-core technology precipitation, Tianrongxin, which focuses on network security business, has made breakthrough progress in innovative fields such as data security, cloud computing, and industrial Internet security, of which the data security business revenue growth rate is as high as 192.68%; the industrial Internet business revenue is 689.77% year-on-year; and the xinchuang business revenue is 560 million yuan, accounting for more than 15%, an increase of nearly 10 times The revenue of big data and situational awareness was 389 million yuan, an increase of 20.77% year-on-year, the revenue of security cloud services increased by 36.21% year-on-year, and the revenue of cloud computing business increased by 244.02%.
There is no doubt that in the context of the era of unlimited importance of data security and network security, Tianrongxin, as a leading company in network security, will obtain historic development opportunities and rich industry dividends.
The importance of data as the fourth largest resource is becoming increasingly prominent
Data is the fourth largest resource after energy, resources, and information, and as countries implement digital strategies, the importance of data assets is becoming increasingly prominent, and data is also regarded as national sovereignty. Leaking data is not only personal information and trade secrets, but also a national security issue. From data security to national security, it's an invisible war. In the second half of 2021, the Data Security Law was officially implemented, the Several Provisions on the Safety Management of Automobile Data began to be trial-run, and the Draft measures for the Management of Industrial and Information Technology Data Security began to be drafted.
From the perspective of investment, the construction of data security is inseparable from network security vendors, so now the network security industry is in the stage of untouched and grain and grass. There are many reasons, one is that the introduction of regulations to the formal implementation of a certain buffer period; the second is that the data security solution is still in the exploratory stage, need time to polish and mature, is not realistic at present; third, from the perspective of the construction party, the network security investment in 2021 mainly comes from last year's budget, and if you really want to see large-scale investment in data security, you still need to wait until this year's budget scale.
Therefore, from the perspective of investment, investors should choose companies with forward-looking layouts in data security products or companies with strong synergy with data security. Of course, for the prospects of the network security industry, 2022 Q1 is the inflection point, because of the impact of the epidemic in 2020, the network security industry in 2021Q1 generally shows a high growth trend, if 2022Q1 continues to maintain a high base, it means that the network security industry will usher in a new turning point, and the network security company with a forward-looking layout is expected to benefit the industry's β superimposed on its own α form a Davis double-click, and Tianrongxin is one of the leaders.
As a firewall leader, Tianrongxin has a first-mover advantage in the field of security
As a leading enterprise in the field of network security in China, Tianrongxin has been in a leading position in the market share of its firewall products for a long time. The company is good at firewall business, and new businesses such as big data situational awareness business are growing well. Tianrongxin has the advantages of "one super and many strong" in the fields of localization, big data analysis, cloud security, cloud security, cloud service and security operation, data security, industrial Internet security, Internet of Vehicle security, And Internet of Things security, and is the most comprehensive network security company in China.
According to IDC data, Tianrongxin Firewall ranks first with a market share of 22.5%, and also ranks first in the overall market share of firewall products (including UTM Firewall, UTM and Tradeditive Firewall). Tianrongxin takes the next generation of firewall as the core, combines the perception ability of NETWORK-wide security components such as IDS, APT, EDR, DLP, antivirus gateway, WAF, vulnerability scanning, database auditing, etc., and realizes integrated intelligent detection. At the same time, it is shared with the big data platform and threat intelligence system to form an efficient global automated policy orchestration and real-time response, providing a full-time and global "zero" dead-end protection solution for customer networks.
In 2021, the company actively promotes the research and development of new products, and the leading company is expected to be strong
Recently, Tianrongxin released its 2021 annual financial report. 2021 is the company's complete fiscal year after the divestiture of the wire and cable business to focus on the network security business, the company's revenue and orders have maintained high growth, new business performance is eye-catching, and localization business is growing rapidly.
According to the annual report, after excluding the cable business and tongtian technology, the company's network security monomer business revenue reached 3.313 billion yuan, an increase of 36.42% year-on-year. New directions and new scenarios have formed a first-mover advantage, and the operating income of new track products such as data security, industrial Internet, xinchuang, big data, security cloud services, and cloud computing has achieved rapid growth.
Since 2021 is the first year of the "14th Five-Year Plan", government customers are mainly planning, and government customer expenditure is affected, and demand may improve in 2022. Over the past few years, due to the concentrated release of diversified security needs, the company has continued to increase investment in the past few years, affecting the profit margin in 2021. With the improvement of products and sales systems, 2022-2023 is expected to see the company's pursuit of rapid development at the same time, the expense ratio fell, and the net profit margin gradually repaired.
During the reporting period, the company further increased investment, R & D expenses increased by 47.35% year-on-year, R & D expenses are mainly used to consolidate the basic network security business, layout and improve data security, cloud computing, cloud security and security cloud services, situation awareness and other new directions and industrial Internet, Internet of Vehicles, Internet of Things and other emerging scenarios of the business technology and products. Sales expenses increased by 33.56% year-on-year, mainly for industry deep ploughing, market sinking and channel expansion, the number of sales personnel increased by 15.89%, and the number of channel sales personnel accounted for 10.91% of the number of sales personnel, laying a better foundation for further market coverage.
Data security is the foundation for the future development of big data. Because the larger the amount of data, the more important security is. With the introduction of policies and the imminent era of data security, Tianrongxin is expected to fully benefit from the layout of new products by deeply cultivating the government industry, actively promoting the reform of sales channels, and vigorously investing in research and development, which is worthy of investors' attention.