The state owned assets supervision and Administration Commission of the State Council recently issued the guidance on central enterprises to accelerate the construction of a world-class financial management system, requiring central enterprises to accelerate the construction of a world-class financial management system. Through the efforts of about five years, the financial management level of central enterprises has significantly jumped to a new level. Through the efforts of about 10-15 years, The vast majority of central enterprises have established a world-class financial management system suitable for world-class enterprises, and the financial management level of a number of central enterprises ranks in the forefront of the world. The main content of the guiding opinions is the “1455” framework, that is, around one goal, promote four changes, strengthen five functions and improve five systems; Emphasizing the transformation of digital intelligence and “great wisdom moving to the cloud”, it is required to realize the transformation of financial operation mechanism from process driven to process driven and data driven based on the new generation of information technology and digital technology.
Grasp the digital economy and expand the market space several times
Under the digital economy strategy, enterprise digitization is an important starting point. The guidance issued by SASAC for central enterprises this time shows the firmness of the policy level in promoting enterprise informatization construction. From a narrow perspective, central enterprises are directly affected by the guiding opinions
The guidelines will effectively accelerate relevant information Investment: only for central enterprises that are highly sensitive to the guiding opinions, taking ERP, the core software of financial management, as an example, through penetration measurement, it is conservatively estimated that the market space brought by central enterprises to achieve their goals alone is about 51 billion yuan, and the neutral market space is about 73 billion yuan, As a reference, the overall space of China’s ERP in 2019 is about 30 billion yuan. Taking the central enterprises as the benchmark, state-owned enterprises and private enterprises may follow the pace of accelerating the construction of informatization and digital intelligence, judge that there are several times of expansion opportunities in the overall ERP market space, and the subsequent enterprise informatization field is expected to usher in a 5-10-year business cycle.
Safety is the foundation, and domestic manufacturers share the feast
In this round of construction cycle of digital intelligence of central enterprises and enterprises, domestic manufacturers may enjoy the market exclusively. At present, China’s high-end ERP market is still dominated by overseas manufacturers, with SAP and Oracle accounting for half of the share. However, financial management is the central link of enterprise management, and its security is self-evident. The localization of management software is one of the core contents of enterprise digital intelligence. However, the recent suspension of services by Oracle and other manufacturers to Russia undoubtedly sounded an alarm for Chinese enterprises again. Policies encourage superimposed event catalysis, and the replacement process is expected to accelerate the release of the market. In this process, domestic enterprise management software manufacturers may become the only beneficiaries. It is suggested to pay attention to Yonyou Network Technology Co.Ltd(600588) , which has been deeply cultivated in the field of enterprise management software for many years, has the advantage of customer structure and has been fully reflected on the order side, as well as the investment opportunities of other high-quality domestic enterprise software management companies.
Risk tips
1. The policy promotion is not as expected;
2. Macro economy affects downstream it expenditure.
