Core view
The sector index fell 3.8% last week, weaker than the overall market. The theme of electronic certificates with good early performance was significantly adjusted, while the main line of digital currency performed better in the second half of the week. We maintain our previous view that the sector is relatively optimistic in terms of valuation and policy expectations, but the recent covid-19 epidemic in China will bring short-term disturbance to the performance of some companies in the first quarter.
Since March, the national epidemic prevention and control has faced great pressure, and the project negotiation, project delivery and acceptance progress of some computer companies have been affected to a certain extent. We collected information through various channels and learned that some companies, especially those with strong tog business attributes, had some impact on their project implementation and confirmation. However, most companies reported that the impact of the epidemic on revenue growth in the first quarter was only at the single digit percentage level. In addition, some enterprises have increased the proportion of online work in the past two years, or the epidemic in their region and core business area is not serious, and the growth in the first quarter has not been affected. These companies include Beijing United Information Technology Co.Ltd(603613) , Zhejiang Heda Technology Co.Ltd(688296) , Hefei Gocom Information Technology Co.Ltd(688367) , Shanghai Weaver Network Co.Ltd(603039) , Dawning Information Industry Co.Ltd(603019) , etc.
The callback of leading cloud computing enterprises is relatively sufficient, and the business continues to advance. Since the beginning of 2020, with the downward trend of the valuation system in China’s foreign markets, the valuations of overseas SaaS companies and Chinese cloud computing companies have experienced a significant correction. We believe that the fundamentals of relevant enterprises are still solid, the quadratic growth curve of some companies is expected to open this year, and the stock price has a good attraction at present. It is recommended that investors pay attention to it.
Industrial digitization is expected to accelerate. The government work report mentioned “promoting the digital transformation of industry”. We believe that industrial Internet platform companies deserve attention, and digital leaders in subdivided industries such as power and coal mining will also usher in a cycle of business acceleration.
“New urban construction it” is not only a steady growth, but also a support for optimizing people’s livelihood. The government work report mentioned the construction of municipal infrastructure. Recently, the national development and Reform Commission will also organize the pilot work of leakage prevention and control throughout the country. This is the first time to support the intelligent construction of local water affairs with central financial funds. We believe that leakage control in the water industry and intelligent energy-saving transformation in the heating industry are important components of “new urban construction”, and relevant companies are expected to accelerate their development.
The promotion of Xinchuang is worth looking forward to. Previously, the information and innovation work of governments at and above the prefecture level has come to an end. This year, we will see the acceleration of information and innovation in the industry and the launch of information and innovation work in e-government system. We believe that the whole information and innovation industry is expected to usher in a new business cycle. In addition to the development of e-government system and e-government system, we also think it is worth looking forward to the development of e-government system.
Investment proposal and investment object
Leading companies of cloud computing: recommend leading digital office companies Beijing Kingsoft Office Software Inc(688111) ( Beijing Kingsoft Office Software Inc(688111) , increased holdings), recommend focusing on leading digital architecture companies Glodon Company Limited(002410) ( Glodon Company Limited(002410) , not rated), recommend focusing on Kingdee International (00268, not rated).
Industry digitalization direction: recommend Industry Internet platform provider Beijing United Information Technology Co.Ltd(603613) ( Beijing United Information Technology Co.Ltd(603613) , buy), recommend paying attention to power informatization manufacturer Ygsoft Inc(002063) ( Ygsoft Inc(002063) , not rated), coal mine intelligent participant Hefei Gocom Information Technology Co.Ltd(688367) ( Hefei Gocom Information Technology Co.Ltd(688367) , not rated).
It field of new urban construction: recommend Zhejiang Heda Technology Co.Ltd(688296) ( Zhejiang Heda Technology Co.Ltd(688296) , buy) as the leader of intelligent water supply. It is suggested to pay attention to the leading enterprise of intelligent heating: Runa Smart Equipment Co.Ltd(301129) ( Runa Smart Equipment Co.Ltd(301129) , not rated).
In the field of Xinchuang: recommend the leader of Xinchuang server Dawning Information Industry Co.Ltd(603019) ( Dawning Information Industry Co.Ltd(603019) , buy). In addition, it is recommended to pay attention to the leader of OA industry Shanghai Weaver Network Co.Ltd(603039) ( Shanghai Weaver Network Co.Ltd(603039) , not rated).
Localization of industrial software: recommend Zwsoft Co.Ltd(Guangzhou)(688083) ( Zwsoft Co.Ltd(Guangzhou)(688083) , buy).
Risk tips
The implementation of the policy is less than expected; The development of digital infrastructure is less than expected; The acceleration of industrial digitization is less than expected; The promotion of Xinchuang is less than expected.
