How Has Cybersecurity Company Sangfor Seen Such High Growth in 2020?
The company's founder, Mr. He Chaoxi, worked at Huawei for two years then founded the company in 2000.
Sangfor, a Shenzhen-based cybersecurity company, has presented a little-affected business performance following the coronavirus outbreak this year. The stock retraced somewhat in recent days but still topped 75% this year. The pandemic has spurred the remote workload massively, so CIOs were first considering maintaining or increasing IT security spending. As a result, Sangfor's topline still jumped 11.91% year-on-year in 1H 2020, the lowest figure in its recorded history.
From January to March, the stock almost doubled as its stellar financials of 2019 and the market's preference for technology surged. Sangfor reported that profit increased by 25.8% to CNY 758.90 million year-on-year. The stock price waved to its historical high on July 15, hitting CNY 254.88 apiece. Since that, Sangfor has seen a small glide.
The cybersecurity sector gave differential stock performances in 2020, as sector leaders like Sangfor and Qi An Xin (688561:SH) acquired investors' preferences, upgrading their valuation. Alternatively, smaller players like Venustech (002439:SZ) and NSFOCUS (300369:SZ) did not materialize stock prices.