Event overview: on December 27, 2021, the central network security and Information Technology Commission issued the National Informatization Plan for the 14th five year plan (hereinafter referred to as the plan) to make deployment arrangements for China’s informatization development during the 14th Five Year Plan period.
The top level sets the tone and leads the computer boom in the 14th five year plan
Top level setting of the plan – 8 aspects + 10 tasks. We believe that the plan sets the IT construction path of “informatization → digitization → intelligence” during the 14th Five Year Plan period, and many main tracks in the computer field are expected to become the focus of policy support: 1) cloud computing and aiot Hongmeng – the cornerstone of Pan Zhilian digital infrastructure; 2) Data security (Network Security) and artificial intelligence – the “shield” and “Mao” of data element system; 3) industrial software and information innovation – the “neck” link of digital productivity; 4) intelligent driving and energy Internet – the core support of industrial digital transformation (global breakthrough); 5) financial technology (digital currency), medical it, digital government – mature scenarios of digital society / government / people’s livelihood.
How to realize the blueprint of informatization planning in the 14th five year plan? The quantitative indicators are as follows: it is expected that by 2025, The penetration rate of 5g users should reach 56% (15% in 2020); the number of bandwidth access users above Gigabit should reach 60 million, nearly 10 times that of the end of 2020; the proportion of IT project investment in the total fixed asset investment of the whole society should rise from 3.5% in 2019 to 5.8% in 2025. Previously, 17 key projects have been started, including “5g innovation and application project” “Intelligent network connection” facility construction and application promotion project “,” national integrated big data center system construction project “, etc.
How to choose the track? Double engine of industrial digitization from the perspective of planning
The plan is a programmatic document for China’s information construction during the 14th Five Year Plan period and will play a positive leading role in industry development and investment. Combining the guidance of the plan with the development process of subdivided industries, we recommend two core tracks – intelligent driving and energy Internet. Both of them are the integrators of many kinds of basic supporting technologies. At the same time, they are both at the intersection of industrial policy and downstream demand. At present, they are at the starting point of the outbreak of the five-year dimension. In fact, they are the industrial twin engines of the great development of it in the “14th five year plan”.
Investment suggestions: after the adjustment in 2021, the leading companies have been fully adjusted, and the valuation advantages of second-line small market value companies are prominent. Based on the 14th five year plan, it is judged to layout along the marginal changes of subdivided tracks. Key recommendations:
1) Intelligent driving and energy it core targets: Longshine Technology Group Co.Ltd(300682) , Beijing Forever Technology Co.Ltd(300365) , Thunder Software Technology Co.Ltd(300496) , Huizhou Desay Sv Automotive Co.Ltd(002920) , Navinfo Co.Ltd(002405) .
2) Core targets of industrial software, SaaS, AI and fintech: Yonyou Network Technology Co.Ltd(600588) , Sangfor Technologies Inc(300454) , Hundsun Technologies Inc(600570) , Zwsoft Co.Ltd(Guangzhou)(688083) , Beijing Kingsoft Office Software Inc(688111) , Energy Technology Co., Ltd., Beijing Tongtech Co.Ltd(300379) , Iflytek Co.Ltd(002230) , Shenzhen Sunline Tech Co.Ltd(300348) .
Other beneficiary objects: Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Qi An Xin Technology Group Inc(688561) , Dbappsecurity Co.Ltd(688023) , Venustech Group Inc(002439) , Hithink Royalflush Information Network Co.Ltd(300033) , Beijing Supermap Software Co.Ltd(300036) , Xiamen Meiya Pico Information Co.Ltd(300188) , Dongfang Electronics Co.Ltd(000682) , Urovo Technology Co.Ltd(300531) , Winning Health Technology Group Co.Ltd(300253) , venture Huikang.
Risk tips: 1) China US science and technology game exceeds expectations; 2) Science and technology related policies are lower than expected; 3) Epidemic factors, etc.
