Security entered the warring States era

In 2010, Shanghai and Guangzhou held the World Expo and the Asian Games respectively. These two grand events led to a rapid expansion of demand in China's security market. The construction of the security system has been expanded from the state's early critical departments to today's public places, large-scale construction, finance, transportation, and communities. The market has great potential. In 2010, China’s security market share was estimated at RMB 227 billion (including exports). Last year, China’s GDP was nearly 40 trillion yuan. The security industry accounts for 0.57% of GDP. If we increase by 8%, our GDP is expected to reach 4.32 trillion yuan in 2011. Even if calculated according to 0.57%, then our country's security market share will reach more than 245 billion yuan this year. Although this algorithm has its own limitations, the growing trend of the security industry and the growing market share are obvious.

At present, the development of China's security industry has basically taken shape and is quite large. Entering the 21st century, security technology has prevented the product industry from further development. The sudden emergence of smart buildings and intelligent community construction, and the emergence of high-tech electronic products and all-digital network products have greatly promoted the vigorous development of the technical protection product market. It is an indisputable fact that China is developing into the world's largest security product market. The gradual formation of the “World Factory” has made China’s security industry a new growth point for the national economy and a rising sunrise industry. The security industry has gradually become a very important new force in China’s economic construction.

The security industry achieved a market worth 227 billion yuan for the whole year of 2010, and listed companies made great contributions. The excellent performance of security companies such as Hikvision, Dahua Group, and Dali Technology has caused stock prices to rise steadily, and investors’ confidence in the security industry has also greatly increased. The security industry is preparing for listing this year or there are not many companies that have ideas for listing. The new opportunity for multi-level and diversified development of the capital market that has emerged in the government work report has also given enterprises hope and confidence in the road to listing. A good investment and financing environment will play a catalytic role in accelerating the development of the security industry.

Since 2010, the domestic security industry has maintained a high degree of prosperity, indicating that the industry's boom has continued to increase. The profitability of the company continued to improve, and its operating income maintained a steady growth as a whole. It is expected that the domestic security industry will benefit in the long-term by benefiting from the strong pull of downstream demand, strong government support for the industry, continuous increase in the strength of industrial technology, continuous improvement in public spending power and security awareness.

The security chip industry located upstream of the industrial chain is controlled by foreign companies. The system integration industry downstream of the industrial chain is still at the initial stage of development, and the market is relatively decentralized. The hardware equipment manufacturers in the middle reaches of the industrial chain already have certain R&D technical strength and have already occupied a relatively high market share in some areas. Enterprises with brand and technological advantages in the industry are expected to further enhance market competitiveness and market concentration. Expect to improve. Security equipment manufacturers are expected to benefit most clearly from the industry chain.

Hardware equipment manufacturers will transition to security system solution providers. With the improvement of China's security application level, leading hardware equipment manufacturers in China will face the transition to system solution providers. Product line construction, product customization capabilities, and software development capabilities are the most critical factors for the transformation of equipment vendors. .

Hardware equipment manufacturers are the clearest link in the industry chain. It is recommended to focus on hardware equipment manufacturers with technological advantages and brand advantages, such as domestic leading enterprises Hikvision and Dahua. As it has a stronger transformation potential and has begun to expand overseas markets, we are relatively optimistic about its long-term development.

The security industry made remarkable achievements in the development of the industry. The security industry participated in the “Safe City” construction project. In the areas of intelligent transportation, prisons, justice, education, public security, water conservancy, electric power, hospitals, and shopping malls, it achieved extraordinary development in industrialization. which performed.

1, security video surveillance industry long-term good. First of all, the security demand grows rapidly with the development of economy and the improvement of living standards. The technical prevention means dominated by video surveillance gains good development opportunities. Secondly, video surveillance reduces dependence on air defense and is in line with the general trend of economic development and industrial upgrading. Once again, intelligent monitoring based on video capture and intelligent computing will become the prelude to the launch of the Internet of Things.

2, video surveillance industry both offensive and defensive. On the one hand, along with the peak construction period of high-speed railways, urban rails, expressways, and urban intelligent transportation infrastructure, the high growth of the industry has been confirmed, and the growth of the performance of listed companies is highly certain and has a high margin of safety. On the other hand, the video surveillance industry is closely related to hot topics such as the construction of the Internet of Things and 3G mobile video surveillance. The space that can be expanded in the future is extremely broad and full of offensive. The five trends of networking, intelligence, high-definition, civilian use, and integration put higher demands on the technical strength and comprehensive capabilities of product suppliers and integrators, which helps the industry to reshuffle the market share of leading companies with strong R&D strength. .

3. In recent years, with the rapid expansion of enterprises, the degree of industrial concentration has been significantly improved, and backbone enterprises in the industry have gradually formed. Statistics of 500 security companies sample survey shows that in 2005 the average corporate employees reached 120 people, with more than 30 million yuan in fixed assets. Among them, 32 companies have met the standards of national large and medium-sized enterprises. Although the number of enterprises only accounts for 6.4% of the total number of surveys, 49% of them are employed, 54% of which are fixed assets, and 52% are realized. Profits and taxes account for more than 45%.

Compared with other industries, domestic security companies have entered the Capital Warring States era. Compared with other industries, the number of listed companies in the security industry is very small, and the time to enter the capital market is also very short. At present, there is no security block in the stock market, and listed security companies are only classified into electronic manufacturing. However, in recent years, China’s security companies have entered the capital market faster and faster, and it is an indisputable fact that after the listing of companies, the value of their investments is viewed by investors. Among listed companies, more and more companies have expanded their business to the security field.

Of the listed companies involved in the security industry, Dr. Peng was the first to enter the capital market. Dr. Chengdu Peng Peng Telecommunications Media Group Co., Ltd. formerly known as Dr. Chengdu Peng Technology Co., Ltd., Chengdu Gongyi Metallurgical Co., Ltd., was established in January 1985. On January 3, 1994, the company's shares were listed on the Shanghai Stock Exchange. Its predecessor was a metallurgical enterprise. The company is currently engaged in telecom value-added services, network monitoring, and network media business. It has an independent research and development, production, procurement and sales system, and has independent and complete business and independent management capabilities. The predecessor of Xinmao Technology was also officially listed in 1997. Xinmao Technology, formerly known as Tianda Tiancai and G Xinmao, is the original Tianjin University Tiancai Information System Engineering Center, Tianjin University's packed tower new technology company and Tianjin Huatong High-Tech Company on the basis of overall restructuring, from Tianjin University, The seven joint-stock companies such as China Ships Co., Ltd. jointly initiated and established a joint-stock company by means of fund-raising. Security engineering design and construction and security monitoring and the production of anti-theft alarm products and equipment are just one of its corporate activities. In 2000, Zhaowei Technology was listed on the Beijing Tianlong Co., Ltd. and in 2002 Xiangxiang Post Technology was listed on the Shenzhen Stock Exchange. In addition, listed companies involved in the security field include Tellhow Technology and Viagra. The main business of these listed companies is different from that of traditional security companies. These companies have different industry backgrounds. Enterprises from different fields mostly expand their business areas into the security industry because they are optimistic about the development prospects of the security industry.

In July 2005, China Security Technology Co., Ltd. (CSST) acquired Shenzhen Jiuding Group and landed on the Nasdaq OTCBB market. In the ensuing three years, CSST set off a merger frenzy in China's security industry: the acquisition of Shenzhen Chuangguan Intelligent Network Technology Co., Ltd. with a consideration of RMB 40 million; and the acquisition of Shanghai Chengfeng with a consideration of RMB 120 million on August 29, 2006; December 28, 2006 250 million acquisition of Shenzhen Hongtianzhi, 80 million acquisition of Wuhan Hengyi; April 10, 2007 acquisition of Changzhou Mingjing and Hangzhou Tianshi; and acquisition of Advanced Video, Shenzhen Horn, and Ailian on June 28, 2007. Beijing Guanlin and Shenzhou Technology Co., Ltd. subsequently joined CSST's strategic alliance. In 2009, CSST once again started the capital machine and acquired Shanghai Nanxiao Fire Engineering Equipment Co., Ltd., Daqing Langmo Optoelectronics Technology Co., Ltd., Xi'an Xulong Electronic Technology Co., Ltd., Tianjin Tongfang Technology Engineering Co., Ltd., and Shanghai Yongan Security Alarm System. Co., Ltd., Beijing Security System Emergency Maintenance Service Center and 6 other companies. With its strong capital strength, CSST quickly became a super security aircraft carrier based on a large security strategy through mergers and acquisitions. The strong financial support of CSST's successful listing and its legendary experience of rapidly growing into a super security aircraft carrier by virtue of its strong capital operation capability have enabled Chinese security companies to deeply appreciate the magical power of the capital market and inspired the impulse and confidence of many security companies in the market. .

Subsequently, Dali Technology was listed on February 18, 2008; on May 20th of the same year, Dahua was successfully listed; on May 28, 2010, Hikvision was successfully listed. In less than three years, in this relatively unpopular emerging industry, Hangzhou has created three listed companies. Among them, Hikvision ranked the top of the Zhejiang-stock market with a market value of 39.9 billion yuan (the closing price on August 31, 2010).

A good industrial environment promotes industrial development, and the overall strength has increased. In recent years, on the one hand, domestic social security monitoring, smart buildings, large public places, factories and enterprises, shopping malls, and new communities have increased substantially. More and more demand points have been added. For many years of market cultivation and promotion, in addition to industries with strong traditional security requirements such as finance and public security, emerging security applications such as transportation, electricity, parks, and hospitals have also witnessed rapid growth in monitoring demand; residents’ income has increased, consumption levels and structure have taken place. With greater changes, people’s awareness of self-protection has also changed, so that the demand for security products continues to increase. On the other hand, the implementation of major projects such as the “emergency system”, “peace society”, “safe city”, “3111” project, the Olympics, and the World Expo promoted by the government has also effectively promoted public security and social security products. The warming of demand.

With the gradual progress of the "Safe City" to prefecture-level cities, counties, and towns, the voice of "Peaceful Rural Areas" and "Security and Security to the Countryside" has gradually increased. With the improvement of the concept of rural consumption and the gradual increase of the consumption base, the government of our country continues to increase the overall development of urban and rural areas, strengthens the strategic goal of the basis of agricultural and rural development, strengthens rural infrastructure construction, increases investment in the construction of rural production and living facilities, and promotes industrialization. With the in-depth implementation of policies for urbanization and modernization of agriculture and rural areas, rural areas will gradually become another emerging market for the security industry.

In 2008, the national launch of the four trillion revitalization plan, transportation infrastructure accounted for a considerable proportion. According to China’s recent high-speed railway planning, by 2012, China will construct 42 passenger dedicated lines with a total mileage of 13,000 kilometers. The country will form a “four vertical and four horizontal” railway rapid passenger transportation channel. Most of the major cities in the eastern, central and western regions are Into the plan. This will result in an all-encompassing increase in demand for monitoring in almost all traffic sub-sectors such as railway hubs and along railway lines, civil aviation hubs, along highways, and rapid urban traffic. In February 2010, the State Council continued to promulgate the top ten industry revitalization plans, among which the equipment manufacturing and electronic information industry revitalization plans are closely related to the security industry, and will also provide strong support for the development of the security industry.

Conclusion: The growth rate of the security industry in 2010 is a very big change. With the intensification of market competition, the degree of industry concentration is getting higher and higher. The growth rate of a few large companies in the industry is much higher than the overall industry development speed. Security The industry has ended its hegemony and entered the Warring States period.