Market review and Valuation: Shenwan computer sector rose by 1.25% this week (02 / 14-02 / 20), outperforming Shanghai and Shenzhen 300 index by 0.17 percentage points, ranking 18th in Shenwan industry; Shenwan computer sector rose 2.30% in February, outperforming the Shanghai and Shenzhen 300 index by 0.38 percentage points, ranking 23rd in Shenwan industry; Shenwan computer sector fell 6.40% this year, 0.55 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 20th in Shenwan industry. In terms of valuation, as of February 18, the pettm of SW computer sector was 48.46 times, at the quantile of 14.51% in recent 5 years and 26.76% in recent 10 years.
Industry news: 1. Recently, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration jointly issued a notice agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong and Macao Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters. So far, the overall layout design of the national integrated big data center system has been completed, and the “counting from the east to the west” project has been officially launched. 2. AMD, a semiconductor design company, said it had completed the acquisition of Xilinx, a large programmable chip manufacturer, with a transaction value of about $50 billion. 3. According to the US IT website the register, Intel will open the soft core and hard core licensing of x86 architecture, so that customers can mix x86, arm, risc-v and other different cpuip cores in Intel’s customized design chips. 4. Mobileye, Intel’s autonomous driving division, announced on Monday that it plans to launch an autonomous electric shuttle bus in the United States with its partners in 2024. 5. Intel expects full year adjusted earnings per share of $3.50 and $3.44. It is estimated that the adjusted gross profit margin of the whole year will be 52%, and it is expected to be 52.1%; It is still predicted that the annual capital expenditure will be US $27 billion and is expected to be US $26.93 billion.
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. 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. 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.
