17. August 2021 | 12:32 CET
Deutsche Telekom, Quantum eMotion, Bechtle - The next big thing
The lockdowns due to the Corona pandemic and working from home were a ready-made meal for cybercriminals. The rapid build-up of new technology such as laptops, software or networks caused significant security gaps that hackers used to increase their activities. The damage to the German economy is considerable. At an estimated EUR 220 billion in 2020, it is twice as high as in previous years. An end to this trend is not expected. However, more and more young technology companies are emerging that want to participate in the billion-euro cybersecurity market. Be there from the start.
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ISIN: DEUTSCHE TELEKOM ADR 1 | US2515661054 , Quantum eMotion Corp | CA74767K1030 , BECHTLE AG O.N. | DE0005158703
Large corporations also affected
It is not only small and medium-sized companies that offer a playground for computer hackers through emerging security vulnerabilities. The latest example is Deutsche Telekom's subsidiary, T-Mobile USA. According to a report by the news site Motherboard, Vice Media claims that hackers have stolen over 100 million data records and are offering them on the darknet in exchange for Bitcoin. Although the post on the forum does not mention T-Mobile itself, the person selling the data reportedly told Vice Media that the data came from T-Mobile servers. The stolen data allegedly includes Social Security numbers, phone numbers, names, addresses and driver's license information. A T-Mobile spokesperson confirmed the suspicion, but further details on the extent could not be provided at this time.
Deutsche Telekom, on the other hand, made positive headlines last week with the publication of its 2nd quarter figures. The US investment bank Goldman Sachs left the Bonn-based Company on its "Conviction Buy List" and reiterated its price target of EUR 26.00. The trend in the T-Share remains on track.
A quantum leap in the billion-euro market
Cybersecurity and protection against online threats are gaining increasing importance in today's digitally changing landscape. Accelerated by COVID-19, the need for better cybersecurity is further exacerbated by increased cybercrime cases as seen across all industries. According to Statista, the global cybersecurity market will increase from USD 167.1 billion in 2019 to USD 248.26 billion in 2023 at a growth rate of 10.4% per year.
In addition, new technologies such as autonomous driving, the Internet of Things, and the new 5G networks require secure connections and encryption techniques. The current method, which generates hard-to-crack numbers using random generators, is reaching its security limits with the advent of quantum computers with infinite computing power. Based on quantum random number generation (QRNG), publicly traded Quantum eMotion is developing the next generation of cryptographic solutions in collaboration with the University of Sherbrooke and the École des Technologies Supérieures in Canada. Quantum eMotion's target markets are 5G and IoT applications.
In this context, the patent-protected technology based on quantum electron tunneling stands out for its high performance and versatility of applications and its small footprint and very low energy consumption. Currently, development is underway on a portable QRNG USB-type that provides easy-to-use but robust hardware protection for any number of IT systems and online services and delivers a portable hardware security module. The second product is a CMOS chip integrated into QRNG that, despite its minimal size, can provide the reliability, speed and scalability needed to serve the growing market of IoT devices.
Despite the technical advantages in developing the smallest, most reliable and robust hardware components that exploit the built-in unpredictability of quantum mechanics, Quantum eMotion, with a market capitalization of EUR 19.14 million, lags significantly behind peer companies. Due to this, a sale to a larger player does not seem out of the question in the future.
Bechtle continues to trend upwards
The share of the IT system house Bechtle has performed brilliantly over the past 10 years. Whereas in 2011, shares could still be snatched up at a price of around EUR 4.00, the current price is EUR 58.50. The positive development was reflected in the recently announced quarterly figures. Due to the global supply bottlenecks on the IT market and the continuing restrictions due to the pandemic, demand for high-performance IT solutions and services remains high in all business areas. Sales in the second quarter rose by 9.3% to EUR 1.43 billion, while pre-tax profit grew by 39.8% to EUR 81.2 million. For the year as a whole, management remains highly optimistic and expects a "very significant" increase in earnings.
The issue of cybercrime has become even more important since the Corona pandemic. New technologies are also increasing the urge for network security. Quantum eMotion is developing the next level on a novel basis. Despite a hacker attack on the US subsidiary, Deutsche Telekom remains a buy, as does Bechtle AG.