Still waters flow deep and are ready to go. 1) Market review: in the past year (2021.1.1-2022.1.28), the growth of the computer industry was at a medium low level among all industries, and the performance of Huawei software industry chain was outstanding. 2) Institutional position: the position level of the industry has been steadily improved, and the concentration has further decreased. 3) Industrial capital accumulation: the sector has ushered in a wave of repurchase, and equity incentives and executive holdings have emerged intensively. 4) Leading Valuation: most companies are at a low level, and the historical quantile highlights the configuration value of the computer sector.
Digital economy carries the “banner” of the computer industry. *** Under the general trend of building a digital economy, new urban and rural digital infrastructure is expected to become a new main line of informatization. Financial it is expected to become the “leader” of digital economy under the triple catalysis of business cycle, digital RMB and financial information innovation.
Smart cars and AI: the “brain” of digital economy. The architecture reform of intelligent vehicles has jumped from “mechanical definition – hardware definition” to “software and hardware common definition – ecological definition”. Smart cars will be mass-produced in 2022, and the intelligent “highlight moment” is coming. Moreover, from 2022 to 2025, the main engine factory will adopt the “hardware embedding” method, resulting in the gradual spread of models with automatic driving ability, the penetration rate will also accelerate, and the “intelligence” of vehicles will enter a new era.
Domestic digital base: the “root and bone” of digital economy. The core keywords of industry information innovation and digital base localization are “Huawei’s base” and “central enterprise’s market”, and the most flexible direction is domestic database. With the arrival of the tide of localization, database, as one of the most important basic software products, has development potential. At the same time, driven by the innovation of AI and cloud technology, it is expected to create opportunities for upgrading in the civil field.
Cloud and SaaS: the “aorta” of digital economy. Cloud computing is an important theme for the development of science and technology industry in the future. Under the trends of enterprise digital transformation, leading enterprises going to sea and the emergence of new downstream demand, SaaS industry has ushered in high-level and long-term development opportunities. 2022 may be an important turning point for the long-term development of China’s enterprise SaaS market.
Investment suggestions: strong policy support and institutional positions at the bottom of history are the most important core advantages of the computer sector. The “center” (Digital Government), “brain” (smart car and AI), “root bone” (domestic digital base), “blood” (Financial IT), “main vein” (cloud and SaaS) and other directions of the digital economy are mainly recommended Navinfo Co.Ltd(002405) , Iflytek Co.Ltd(002230) Yonyou Network Technology Co.Ltd(600588) , Xindian software, Beijing Kingsoft Office Software Inc(688111) , Beijing Shiji Information Technology Co.Ltd(002153) , Glodon Company Limited(002410) , Beijing Supermap Software Co.Ltd(300036) , B-Soft Co.Ltd(300451) , Beijing Tongtech Co.Ltd(300379) .
Risk warning: the release rhythm of downstream demand is less than expected; The landing process of new technology industry is less than expected; The progress of business model reform is less than expected.
