Key investment points
Event: the central network security and Information Technology Commission printed and distributed the National Informatization Plan for the 14th five year plan, and made deployment arrangements for China’s informatization development during the 14th Five Year Plan period. The plan proposes that by 2025, the construction of Digital China will make decisive progress, and the development level of informatization will rise sharply. The digital infrastructure system is more complete, the digital technology innovation system is basically formed, the quality and benefits of digital economic development have reached the world leading level, the construction of digital society has been steadily promoted, the construction level of digital government has been comprehensively improved, the guarantee ability of digital people’s livelihood has been significantly enhanced, and the digital development environment is becoming more and more perfect.
The plan deploys ten major tasks and sets up 17 key projects such as 5g innovation and application project: the plan deploys ten major tasks around the determined development goals, one is to build a ubiquitous digital infrastructure system of Zhilian, the other is to establish an efficient data element resource system, and the third is to build an innovative development system that releases digital productivity, The fourth is to cultivate an advanced and safe digital industry system, the fifth is to build an industrial digital transformation and development system, the sixth is to build a digital society governance system of CO governance and sharing, the seventh is to build a collaborative and efficient digital government service system, the eighth is to build a universal and convenient digital people’s livelihood guarantee system, and the ninth is to expand a mutually beneficial and win-win international cooperation system in the digital field, Tenth, establish and improve a standardized and orderly digital development governance system. Focusing on the implementation of major tasks, the plan has established 17 key projects, including 5g innovation and application project, intelligent network connection facility construction and application promotion project, and national integrated big data center system construction project.
Deploying the next generation of intelligent facility system moderately in advance, and 5g application potential is expected to be fully released: the plan proposes that to promote high-quality development and improve people’s well-being, we need to accelerate the construction of digital infrastructure, deploy the next generation of intelligent facility system moderately in advance, deepen the digital and intelligent transformation and upgrading of public facilities, and promote the improvement of infrastructure capacity in an all-round way. According to the plan, by 2025, the number of Internet users in China will reach 1.2 billion, the penetration rate of 5g users will reach 56%, the number of optical fiber access users with 1000m and above speed will reach 60 million, and the number of IPv6 active users will reach 800 million. The plan puts forward three specific requirements in the “5g innovation and application project”: accelerating the construction of 5g network, cultivating 5g technology application ecology and continuously promoting 5g technology innovation. Accelerate the integration, innovation and leading application of “5g + industrial Internet”, and promote the development, utilization and application promotion of 5g in vertical industries such as energy, transportation, medical treatment, postal express and so on. We believe that during the 14th Five Year Plan period, 5g construction will be further accelerated. With the acceleration of industrialization, the application potential of 5g in various fields will be fully released.
The construction of intelligent networking facilities has been further accelerated, and the Internet of vehicles has entered a high-speed development stage: the plan requires to carry out innovative demonstration of the application of the Internet of vehicles in the construction and application promotion project of “intelligent networking” facilities. Select and build a national vehicle networking pilot area, accelerate the construction of intelligent networked vehicle road infrastructure and 5g-v2x vehicle networking demonstration network, improve the “people, vehicle, road, cloud and network” coordination ability of on-board intelligent equipment, roadside communication equipment, road infrastructure and intelligent control facilities, and realize advanced automatic driving applications above L3 level. We believe that in the Internet of things industry, the Internet of vehicles will be the fastest-growing segment scenario. It is recommended to pay long-term attention to the relevant targets of segment circuits such as intelligent Internet connected vehicles, driverless, vehicle road coordination and so on.
Recommended (covered): new infrastructure and cloud: Zte Corporation(000063) , China Telecom Corporation Limited(601728) , Beijing Highlander Digital Technology Co.Ltd(300065) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) ; electric vehicle intelligence: Thunder Software Technology Co.Ltd(300496) , Beijing Tricolor Technology Co.Ltd(603516) , Meig Smart Technology Co.Ltd(002881) ; optical module: Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) , Zhongji Innolight Co.Ltd(300308) ; IDC: Guangdong Aofei Data Technology Co.Ltd(300738)
Suggestions for attention (not covered): new infrastructure and cloud: SHENSANGDA; electric vehicle intelligence: Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ; optical module: Eoptolink Technology Inc.Ltd(300502) , Cig Shanghai Co.Ltd(603083) , Advanced Fiber Resources (Zhuhai) Ltd(300620) ; IDC: Shanghai Baosight Software Co.Ltd(600845)
Risk tip: 5g construction progress is less than expected, and policy support is less than expected.
