On February 17, 2022, according to Xinhua news agency, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration recently jointly issued a document agreeing to start the construction of National Computing hub nodes in Beijing Tianjin Hebei, the Yangtze River Delta, Guangdong Hong Kong Macao Dawan District, Chengdu Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, Zhangjiakou cluster and other 10 national data center clusters are planned. 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.
The project of “counting East and counting West” was officially launched, and the promotion speed of new infrastructure of digital economy is expected to exceed expectations. 1) At present, a new round of scientific and technological revolution and industrial reform are reshaping the global economic structure, and computing power is the core productivity of the digital economy. According to the report of the national development and Reform Commission, as of February 2022, the scale of China’s data center has reached 5 million standard racks and the computing power has reached 130eflops. It is expected that it will still grow rapidly at a rate of more than 20% every year. What does not match the increasing demand for computing power is that China’s data computing power is not evenly distributed in the East and West. In the future, the western region needs to undertake more computing power demand in the east to realize the national integrated layout and optimal allocation of resources. 2) To this end, the “counting from the east to the west” project has been fully launched, and 8 hubs and 10 data center clusters are planned to be built to meet the needs of different types of data processing in the East and West, and ensure the green, energy-saving and healthy development of the data center. According to the report of Shanghai Securities News, the annual investment volume of the “counting from the east to the west” project may reach hundreds of billions of yuan, and the pulling effect on Civil Engineering, it equipment manufacturing, information and communication, basic software, green energy supply and other related industries may reach 1:8. On the basis of the specific promotion, according to the associated press report, the first super large data center of the Kwai Tai will be located at the “East West counting” Inner Mongolia hub node landing, and China Mobile will also combine “east to west” to promote the transformation of the computing power infrastructure and backbone transmission network. 3) Since the end of 2021, with the release of several top-level policy documents, the strategic position of digital economy has reached an unprecedented height. From a comprehensive judgment, digital economy is of great significance. It is a strategic choice to grasp the new opportunities of a new round of scientific and technological revolution and industrial reform, and is expected to become an important driving force for the high-quality development of China’s economy; Among them, it infrastructure is the bottom base of the digital economy, and its development importance ranks in the forefront. Leading manufacturers such as servers and data centers are expected to benefit from the core. This time, the “Eastern digital computing and Western computing” project was officially launched in an all-round way, giving a national integrated layout plan for computing infrastructure. As the first starting point of digital economy, we expect that the “Eastern digital computing and Western computing” has implemented the realization path of China’s digital economy development, and the promotion speed of subsequent digital economy is expected to continue to accelerate.
The strategic position of digital economy is unprecedented and is expected to become an important driving force for China’s economic development. 1) On January 12, 2022, the State Council issued the notice of the 14th five year plan for the development of digital economy. By 2025, the added value of China’s core industries of digital economy should increase from 7.8% to 10% of GDP; On January 15, Qiushi published an article Xi Jinping General Secretary: constantly strengthening, optimizing and expanding China’s digital economy. The two top-level documents confirm that China’s strategic position of digital economy has reached an unprecedented height and is expected to become an important starting point for high-quality and stable economic growth and development. 2) According to the guidelines of the 14th five year plan for the development of digital economy, we expect that information network infrastructure, data security, industrial digital transformation, Huawei Xinchuang and other industries are expected to develop by leaps and bounds.
Investment object:
It infrastructure: Dawning Information Industry Co.Ltd(603019) , Inspur Electronic Information Industry Co.Ltd(000977) , Shanghai Baosight Software Co.Ltd(600845) , Beijing E-Hualu Information Technology Co.Ltd(300212) , Unisplendour Corporation Limited(000938) etc. Huawei Xinchuang: Beijing Vastdata Technology Co.Ltd(603138) , Digital China Group Co.Ltd(000034) etc
Data element application and data security: Westone Information Industry Inc(002268) , Dbappsecurity Co.Ltd(688023) , Qi An Xin Technology Group Inc(688561) , Sangfor Technologies Inc(300454) and other industrial Digitization: Longshine Technology Group Co.Ltd(300682) , Iflytek Co.Ltd(002230) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Beijing Kingsoft Office Software Inc(688111) , Glodon Company Limited(002410) , Beijing Shiji Information Technology Co.Ltd(002153) , Guangzhou Sie Consulting Co.Ltd(300687) , Beijing United Information Technology Co.Ltd(603613)
Risk warning: policy promotion is not as expected; Financial expenditure is lower than expected; Macroeconomic risk
