Market review and Valuation: Shenwan computer sector fell 8.50% in January, 0.88 percentage points lower than Shanghai and Shenzhen 300 index, ranking 17th in Shenwan industry; Shenwan computer sector fell 8.50% this year, 0.88 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 17th in Shenwan industry. In terms of valuation, as of January 28, the pettm of SW computer sector was 49.13 times, at the quantile of 18.04% in recent five years and 29.10% in recent 10 years.
Industry news: 1. Meta (formerly Facebook) released unaudited financial statements for the fourth quarter and the whole year of fiscal year 2021 as of December 31. 2. Mark Zuckerberg, founder of meta, said that over the past year, the company has made progress in important growth areas such as reels, business and virtual reality. In 2022, the company will continue to invest in these and other key priorities and strive to build a metauniverse. He said that personalized advertising, privacy review and artificial intelligence are also the investment priorities in 2022. 3. Alphabet (the parent company of Google) released its fourth quarter financial report of fiscal year 2021 as of December 31. 4. Amazon released its fourth quarter and full year financial results of fiscal year 2021. 5. Microsoft released the second quarter financial report of fiscal year 2022.
Zhou’s view: 1) from the recent policy documents issued by the central and local governments, the importance of developing digital economy and promoting digital transformation is further highlighted. It is suggested to seize the opportunity of China’s digital transformation, focus on the “hardware and software” base, and focus on data elements, data security, data governance and other fields. 2) The three major overseas cloud giants released results, and the cloud business continued to maintain rapid growth. Specifically, Microsoft’s 21q4 smart cloud business revenue was $18.327 billion, a year-on-year increase of 25.52%, of which azure and other cloud services revenue increased by 46%; Amazon’s 21q4aws revenue reached US $17.78 billion, a year-on-year increase of 39.54%, further accelerating the growth rate compared with Q3; Google’s 21q4 cloud revenue was $5.541 billion, a year-on-year increase of 44.64%. Cloud computing has become an important technical means to reduce costs and increase efficiency in the digital transformation of enterprises. It has the certainty of growth and is recommended to continue to pay attention. Suggestions on the subject: Cloud Computing: Yonyou Network Technology Co.Ltd(600588) (600588), Inspur Electronic Information Industry Co.Ltd(000977) (000977), Shanghai Baosight Software Co.Ltd(600845) (600845), Glodon Company Limited(002410) (002410), Beijing Kingsoft Office Software Inc(688111) (688111), etc. Artificial intelligence: Iflytek Co.Ltd(002230) (002230), Zhejiang Dahua Technology Co.Ltd(002236) (002236), Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415), etc. Securities it: Hundsun Technologies Inc(600570) (600570), etc. Network security: Qi An Xin Technology Group Inc(688561) – U (688561), Venustech Group Inc(002439) (002439), Nsfocus Technologies Group Co.Ltd(300369) (300369), etc. Xinchuang: China Greatwall Technology Group Co.Ltd(000066) (000066), China National Software And Service Company Limited(600536) (600536), Dawning Information Industry Co.Ltd(603019) (603019), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
