For the first time, the importance of digital economy continued to increase
In the 2022 government work report, it is proposed to promote the development of Digital Economy: strengthen the overall layout of Digital China construction. Build digital information infrastructure, promote the large-scale application of 5g, promote the digital transformation of industries, and develop smart cities and digital villages. Accelerate the development of industrial Internet, cultivate and expand digital industries such as integrated circuits and artificial intelligence, and improve the innovation and supply capacity of key software and hardware technologies. Improve the governance of digital economy, release the potential of data elements, and better enable economic development and enrich people’s lives. In addition, it also proposed to “strengthen the construction of digital government, promote the sharing of government data, further reduce all kinds of certificates, expand the scope of” inter provincial general handling “, and basically realize the exchange and mutual recognition of electronic certificates”. On January 12, 2022, the “14th five year plan” for the development of digital economy was issued. On January 16, the general secretary of Xi Jinping published an important article “constantly strengthening, optimizing and expanding China’s digital economy” in Qiushi magazine, emphasizing the development of digital economy. In recent months, China’s digital economy has risen to an unprecedented strategic position. This government work report describes the digital economy in separate sections for the first time, and the degree of attention continues to increase. Most provinces and two sessions have also made layout plans for the digital economy. On February 18, China’s “East digital West” project was officially launched, and the process of digital industrialization and industrial digitization is expected to accelerate.
“Increase the deduction proportion of R & D expenses” is beneficial to science and technology enterprises
In the government work report, it is proposed to deeply implement the innovation driven development strategy in 2022 and strengthen the innovation incentive of enterprises. Promote the development of venture capital, innovate scientific and technological financial products and services, and improve the specialization of scientific and technological intermediary services. We will strengthen the implementation of the policy of adding and deducting R & D expenses, increase the proportion of adding and deducting scientific and technological small and medium-sized enterprises from 75% to 100%, implement tax incentives for enterprises to invest in basic research, and improve policies such as accelerated depreciation of equipment and appliances and income tax incentives for high-tech enterprises. This policy will encourage science and technology enterprises (including computer software enterprises) to increase R & D investment and technological innovation, and promote the development of enterprises and industries.
The digital economy is expected to become one of the important drivers of steady growth and attach importance to relevant investment opportunities
The growth target of China’s GDP in 2022 is 5.5%, which is the upper limit of market expectation. Steady growth will be made. As an important part of new infrastructure, digital economy is expected to become one of the key investment directions of the government. It is suggested to pay attention to investment opportunities in relevant segments: 1) Xinchuang: China National Software And Service Company Limited(600536) , China Greatwall Technology Group Co.Ltd(000066) , Dawning Information Industry Co.Ltd(603019) , Beijing Baolande Software Corporation(688058) ; 2) Digital government affairs: Beijing Egova Co.Ltd(300075) , Fujian Boss Software Corp(300525) , new point software; 3) Industrial Internet: Yonyou Network Technology Co.Ltd(600588) , Shanghai Baosight Software Co.Ltd(600845) , Beijing United Information Technology Co.Ltd(603613) , Longshine Technology Group Co.Ltd(300682) ; 4) Fintech: Hundsun Technologies Inc(600570) , Yusys Technologies Co.Ltd(300674) , Global Infotech Co.Ltd(300465) , Shenzhen Sunline Tech Co.Ltd(300348) , Lakala Payment Co.Ltd(300773) ; 5) Information security: Qi An Xin Technology Group Inc(688561) , Sangfor Technologies Inc(300454) , Dbappsecurity Co.Ltd(688023) , vide information; 6) Industrial software: Zwsoft Co.Ltd(Guangzhou)(688083) , Kelun electronics, Digiwin Software Co.Ltd(300378) , Zhejiang Supcon Technology Co.Ltd(688777) , etc.
Industry rating and investment strategy
We are optimistic about the development prospect of digital economy under the background of steady growth and give the computer industry an “overweight” rating.
Risk tips
Repeated outbreaks and macroeconomic downside risks; The risk that the digital economy policy and development progress are lower than expected; The risk that the performance of relevant companies is lower than expected, the risk of intensified competition, etc
