Key investment points:
Market review and Valuation: Shenwan computer sector rose 1.03% this week (02 / 07-02 / 11), outperforming the Shanghai and Shenzhen 300 index by 0.21 percentage points, ranking 22nd in Shenwan industry; Shenwan computer sector rose 1.03% in February, outperforming the CSI 300 index by 0.21 percentage points, ranking 22nd in Shenwan industry; Shenwan computer sector fell 7.56% this year, 0.70 percentage points lower than the Shanghai and Shenzhen 300 index. In terms of valuation, as of February 11, the pettm of SW computer sector was 49.79 times, at the 20.00% quantile in recent 5 years and 30.47% quantile in recent 10 years.
Industry news: 1. According to the latest report released by IDC, the overall market size of Q3 China’s public cloud services (IAAs / PAAS / SaaS) reached US $7.188 billion in 2021. 2. It is reported that Softbank failed to sell arm to NVIDIA for $66 billion, and Softbank will receive a $1.25 billion breakup fee. Earlier, regulators in the United States, the United Kingdom and the European Union expressed serious concern about the impact of the transaction on the competitive landscape of the global semiconductor industry. Softbank seeks to split arm through IPO before the end of the year. 3. According to reports, people familiar with the matter said that Microsoft is preparing to acquire mandiant, a network security company, which is still in the negotiation stage. 4. Metaplatform, Facebook’s parent company, said on Tuesday that the company absolutely did not threaten to leave the European market and hoped to continue to make progress in dialogue with European regulators. Previously, meta said in its latest annual report that if the EU and the United States cannot reach a new agreement on data sharing, the company may close its Facebook and instagram businesses in Europe.
Zhou viewpoint: from the recent policy documents issued by the central and local governments, the importance of developing the digital economy and promoting digital transformation is further highlighted. Focus on the key areas of data transformation and software governance, focusing on the “base” of data. 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.
