On December 20, Anbang Escort (**603373), a domestic comprehensive security service provider, was listed on the main board of the Shanghai Stock Exchange. According to the initial listing announcement, the issue price of Anbang Guard is 1910 yuan shares, calculated based on the net profit before deducting non-profits in 2022, the price-earnings ratio corresponding to the issue price is 1986 times.
Funds favor value stocks with a high margin of safety. At the issuance stage, Anbang Escort was sought after by funds. According to the announcement, Anbang Guards issued a total of about 26.88 million shares, and plans to raise 4700 million, the actual raised funds 5100 million, over-raised 0400 million.
Anbang Escort has achieved good results in the issuance stage, which makes the market look forward to the company's performance after listing. In fact, the market's attention and expectation of Anbang Guardian not only stems from the issue price and price-earnings ratio indicators at the capital level, but also lies in the company's "hard core" strength in the field of security services.
According to the prospectus, Anbang Guard has formed a "3+1" plate layout focusing on "financial security services", "comprehensive security services" and "security emergency services", as well as "overseas security services", and has built a comprehensive and multi-level security service matrix. Relying on this, Anbang Escort is an industry champion, and its revenue in 2022 ranks first among domestic peers.
In recent years, the security service industry has been expanding its market space under the encouragement of national policies. The ever-expanding market space means that there are huge opportunities for Anbang to expand its business territory and enhance its brand. From the perspective of the international market, the security service industry has produced a number of giants with tens of billions of revenues. In contrast, there is a huge gap between the scale of domestic enterprises and their foreign counterparts, and the growth space is also broader. Judging from the classic investment theory and logic, Anbang Escort is in a "long slope and thick snow" track.
With the economic and social development and the continuous improvement of people's living standards, the position of public security in the happiness index of the masses has become increasingly prominent. As a comprehensive security service provider in China, Anbang Escort handed over a "high-score answer sheet".
According to the prospectus, Anbang Security provides diversified and comprehensive security services for the society, for example, a large number of the latest security technology is used to provide all-round and integrated security services for key social units such as **, banks, schools, and large-scale events such as the 19th Asian Games in Hangzhou in 2022.
In addition to security services, Anbang Security also provides sales and construction of intelligent security systems, including equipment sales and installation of financial-related security products and public safety-related security productsSecurity engineering projects mainly include Zhi'an campus, two-wheeled electric vehicle anti-theft project, future community, public safety area integration, smart prison and other security engineering projects.
In the field of security and emergency services, Anbang Escort is like a "hexagonal warrior", providing services including the management of property involved in the case and the file management of large institutions, traffic emergency services, social emergency material management and emergency rescue.
Among them, emergency rescue mainly includes emergency transportation of emergency rescue materials, emergency rescue, manpower support, materials after the completion of emergency rescue tasks, cleaning, transportation and return to storage and other related services.
It is not difficult to see that Anbang Guard's business covers many industries such as finance, education, fire protection, etc., with a wide range of business scope, and at the same time, the scenarios involved are extremely diverse, including **, campuses, communities, event venues and other social fields.
Public security is the "great power of the country", which is connected to economic and social development on the one hand, and thousands of households on the other. At the same time, public safety is also an important area, which is closely related to the vital interests of the people's lives and property. It can be said that public safety is directly related to the people's sense of gain and happiness.
Anbang Guard has built a comprehensive and multi-level security service matrix on the front line of society, and the "trinity" of civil air defense, technical defense and physical defense has built a solid social and public safety barrier, reflecting the company's responsibility as a state-owned and state-owned enterprise.
In the field of investment, Warren Buffett's theory of "long slopes and thick snow" is regarded as a guideline by value investors. Among them, "long slope" refers to the huge development space of the industry track in which a company is located, and "thick snow" refers to the company's wide and deep moat.
The security service industry is a strategic industry supported by national policies, and under the east wind of policy, the market space is huge and the prospects are broad.
The "14th Five-Year Plan" of China's security industry issued by the China Security Association is clear, vigorously developing the modern security service industry, and by 2025, the proportion of service operation revenue will increase from less than 3% to 13%. According to statistics, from 2019 to 2021, the output value of security services increased from 66 billion yuan to 90 billion yuan, accounting for an expanding share of the total output value of the security industry.
**The "Notice on Printing and Distributing the 14th Five-Year Plan for the National Emergency System" mentioned that the safety and emergency industry should be expanded and a number of large enterprise groups in the safety and emergency industry with strong competitiveness in the domestic and foreign markets should be cultivated. According to the report of the China Research Institute of Puhua, the market size of the security emergency industry will reach 1 in 202582 trillion yuan.
Big water raises big fish, and big tracks run out of big companies. From 2020 to 2022, Anbang Guard's performance has grown steadily, with operating income of 206.4 billion yuan, 219.7 billion yuan, 237.9 billion yuan, with a compound annual growth rate of 672%；Achieved net profit attributable to the parent company of 12 billion yuan, 09.3 billion yuan, 11.3 billion yuan, with a compound annual growth rate of 2146%。
According to the prospectus, Anbang Guard's revenue in 2022 ranks first among domestic listed companies and listed companies in the same industry. Compared with other peers, Anbang Escort has accumulated certain competitive advantages in terms of business sector synergy, scale, management, brand, talent and shareholder resources.
Taking the listing as an opportunity, Anbang Guard's vision is to move towards "world-class" and build itself into a leading domestic and world-class modern comprehensive security service provider with high-quality services, scientific management and good reputation.
Compared with the domestic market, the security service industry in the international market is more commercialized, and many giant companies have emerged in the capital market, such as Jeffers in the United Kingdom, with an operating income of about 616 in 20200.4 billion yuan, net profit of about 142.5 billion yuan. Sweden's Sekolida has an operating income of about 887 in 20222.4 billion yuan, net profit of about 28$7.4 billion.
Anbang Guard's operating income in 2022 is 237.9 billion yuan, net profit attributable to the parent company of 11.3 billion yuan, from the perspective of performance scale, there is a huge gap with foreign counterparts. This also means that the growth potential of Anbang Escort is huge and the growth space is broad.
In addition to deeply cultivating the domestic market, Anbang Escort also actively responds to the national "One Belt, One Road" initiative, and has successfully developed the overseas security market through consultation and joint construction with overseas Chinese-funded enterprises and institutions. With the acceleration of China's "One Belt, One Road" process, the demand for overseas security market continues to expand, which will bring greater development opportunities for Anbang Guard.
Time is the best value tester. From the perspective of market space and company moat, Anbang Guard is an enterprise with "long slopes and thick snow", and such enterprises often achieve a "snowball" of performance and valuation. Compared with overseas counterparts, Anbang Escort still has a lot of room for growth, and it is worth looking forward to how it will catch up or catch up after listing.