Market review and Valuation: Shenwan computer sector fell by 1.55% this week (03 / 14-03 / 20), 0.61 percentage points lower than Shanghai and Shenzhen 300 index, ranking 13th in Shenwan industry; Shenwan computer sector fell 8.22% in March, 1.33 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 21st in Shenwan industry; Shenwan computer sector fell 13.80% this year, 0.15 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 20th in Shenwan industry. In terms of valuation, as of March 18, the PE TTM of SW computer sector was 44.61 times, at the quantile of 7.06% in recent 5 years and 17.87% in recent 10 years.
Industry news: 1. According to the news of the central bank on the 18th, the central bank, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, foreign exchange administration and Zhejiang Provincial People’s government issued opinions on financial support for the high-quality development of Zhejiang and the construction of a demonstration area of common prosperity. It is proposed to promote the high-quality and coordinated development of various mobile payment products such as unified mobile payment app and bank app in the banking industry; Promote government departments to integrate resources and jointly build mobile payment convenience scenarios. Support qualified banks and non bank payment institutions in Zhejiang to provide domestic mobile payment services for overseas individuals. Support eligible regions to carry out digital RMB pilot projects. 2. Kingdee International Software Group released the annual performance report for 2021. The annual revenue was 4.174 billion yuan, a year-on-year increase of 24.4%, of which the cloud business revenue increased by 44.2% year-on-year to about 2.758 billion yuan, accounting for about 66.1% of the revenue, and the traditional software and other revenue decreased by 2% year-on-year. The current loss attributable to equity holders of Kingdee company is about 302 million yuan, which is narrowed compared with the loss of 335 million yuan in the same period last year; Net operating cash inflow was 661 million yuan, an increase of 39.6% year-on-year. 3. It is reported that arm, a British chip company, revealed this week that it plans to cut 12% to 15% of its workforce worldwide, with a maximum of 1000 people. 4. Intel announced on the 15th that it will invest 17 billion euros in the eastern German city of Magdeburg to build its supercomputer manufacturing plant in Europe. 5. Recently, Stanford University released the report of artificial intelligence index report 2022.
Zhou viewpoint: from the recent policy documents issued by the central and local governments, the importance of the digital economy will be further highlighted and is expected to become one of the important driving points for steady growth this year. It is suggested that investors seize the opportunity of China’s digital transformation, focus on the “hardware and software” base, and focus on data elements, data security, data governance and other fields. Suggestions on the subject matter: securities asset management it: Hundsun Technologies Inc(600570) ( Hundsun Technologies Inc(600570) ), etc. Cloud Computing: Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) ), Inspur Electronic Information Industry Co.Ltd(000977) ( Inspur Electronic Information Industry Co.Ltd(000977) ), Shanghai Baosight Software Co.Ltd(600845) ( Shanghai Baosight Software Co.Ltd(600845) ), Glodon Company Limited(002410) ( Glodon Company Limited(002410) ), etc. Xinchuang: Dawning Information Industry Co.Ltd(603019) ( Dawning Information Industry Co.Ltd(603019) ), China Greatwall Technology Group Co.Ltd(000066) ( China Greatwall Technology Group Co.Ltd(000066) ), China National Software And Service Company Limited(600536) ( China National Software And Service Company Limited(600536) ), etc. Network security: Venustech Group Inc(002439) ( Venustech Group Inc(002439) ), Qi An Xin Technology Group Inc(688561) -u ( Qi An Xin Technology Group Inc(688561) ), Nsfocus Technologies Group Co.Ltd(300369) ( Nsfocus Technologies Group Co.Ltd(300369) ), etc. Artificial intelligence: Iflytek Co.Ltd(002230) ( Iflytek Co.Ltd(002230) ), Zhejiang Dahua Technology Co.Ltd(002236) ( Zhejiang Dahua Technology Co.Ltd(002236) ), Hangzhou Hikvision Digital Technology Co.Ltd(002415) ( Hangzhou Hikvision Digital Technology Co.Ltd(002415) ), etc. Intelligent automobile: Thunder Software Technology Co.Ltd(300496) ( Thunder Software Technology Co.Ltd(300496) ), Huizhou Desay Sv Automotive Co.Ltd(002920) ( Huizhou Desay Sv Automotive Co.Ltd(002920) ), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
