The computer industry leader has underestimated the value of high growth, which has reached the value allocation range:
We selected six leading companies in the industry for analysis. In a comprehensive view:
The share price has been equivalent to that in early 2020, and the valuation level has been significantly reduced, at an all-time low.
In recent years, the revenue and net profit of leading enterprises have maintained a high growth of more than double digits, with stable gross profit margin and healthy cash flow.
In 2022, the digital economy has become a policy hotspot, and digital transformation has become a “compulsory course” for enterprises. In the medium and long term, the trend of digital economy, digital transformation and domestic substitution will continue. With the support of multiple substantive benefits, the high prosperity of the industry will continue.
China has multiple advantages such as Beijing Vastdata Technology Co.Ltd(603138) , rich application scenarios and broad market space. Under the background of digitization, localization and legalization, China has the soil to cultivate large market value companies. Leading enterprises with high product maturity and strong combat effectiveness have the first mover advantage.
Investment advice
While the valuation dropped sharply, the policy continued to improve (the industry information and innovation accelerated, and the digital economy rose to the national strategy), and the demand remained strong (under the background of digital transformation, the investment in enterprise digital construction maintained growth); Rapid growth of enterprises (leading enterprises will maintain double-digit growth in 2021, and there is broad growth space in the medium and long term).
We believe that computer leading enterprises have reached the value allocation range.
Beneficiary objects: Yonyou Network Technology Co.Ltd(600588) , Beijing Kingsoft Office Software Inc(688111) , Hundsun Technologies Inc(600570) , Glodon Company Limited(002410) , Thunder Software Technology Co.Ltd(300496) , Sangfor Technologies Inc(300454) .
Risk warning: market systemic risk; Policy support is less than expected; Sino US game emergencies; Epidemic factors; Intensified market competition, etc.
