Core view
Event: on April 6, China National Software And Service Company Limited(600536) announced that the company and its subsidiary Kirin software plan to invest a total of 700 million yuan (including 200 million yuan subscribed by the company, 500 million yuan subscribed by the subsidiary Kirin software, and the proportion of contribution subscribed is 14.14%). It plans to cooperate with related parties China Greatwall Technology Group Co.Ltd(000066) (the proportion of contribution is 16.16%), Huada semiconductor (the proportion of contribution is 10.10%), CLP information (the proportion of contribution is 10.10%) and Feiteng company (the proportion of contribution is 6.06%) CLP Panda (6.06%), CLP Yilian (6.06%), CLP Jinxin (4.04%), SHENSANGDA (4.04%), Ruida group (4.04%), China Zhenhua (3.64%), Chengdu Rainbow Appliance(Group) Shares Co.Ltd(003023) (3.03%), No. 6 Electronic Research Institute (2.42%) CLP financial investment (10.10% of the capital contribution) and others jointly set up China Electronic Information Innovation Industry Co., Ltd. (tentative name, hereinafter referred to as “China Telecom innovation”) and intend to sign relevant agreements. The total investment scale of China Telecom Chuang is expected to be no less than 4.951 billion yuan. The general partner is China Telecom Education (0.02% of the capital contribution). The enterprise is finally controlled by China Electronics.
China Telecom Chuang helps PKS ecology become bigger and stronger. At present, China Electronics has a relatively complete information innovation ecosystem through investment, M & A and strategic cooperation, and has formed a PKS system with CPU, operating system and security as the core. The establishment of China Telecom Chuang Beijing is to help the company combine endogenous development with external expansion, improve the industrial chain layout and further enhance its core competitiveness.
CEC’s new headquarters landed in Shenzhen, and Xinchuang industry opened the accelerator. On December 25, 2021, the headquarters of China Electronics Group officially moved to Shenzhen. China Electronics, Guangdong Province and Shenzhen signed the strategic cooperation framework agreement on accelerating the building of the core strength and organization platform of the national Internet Information Industry and the strategic cooperation agreement on jointly building the national Internet information innovation strategy highland and industrial cluster. As early as November 2012, China Electronics signed a strategic cooperation agreement with Shenzhen and announced that it would set up an international headquarters in Futian, Shenzhen. The headquarters was formed by the merger of four subsidiaries of China Electronics Import and Export Corporation, China Electronic Equipment Corporation, Sanda group and Aihua electronics. Shenzhen is the city with the fastest development of China’s electronic information industry and the richest industrial clusters. The two sides will accelerate the layout of domestic industries in Guangdong Province and Shenzhen with the main goal of building a national information innovation highland and cultivating a world-class online information industry cluster.
Industry innovation is accelerating. Since the second half of 2021, Chinese operators and financial institutions have successively released large orders for domestic server procurement. Previously, the supplementary procurement of mobile PC servers all used domestic chips, superimposed with the subsequent information innovation procurement in China Unicom, telecom and financial industries. We believe that the overall promotion rhythm of information innovation in the industry is accelerating, and the growth certainty of relevant companies in the information innovation sector is further improved this year.
Investment suggestion: in 2022, Xinchuang procurement, an industry customer represented by finance and telecommunications, is actively promoting localization procurement. CEC ecology focuses on China Greatwall Technology Group Co.Ltd(000066) , China National Software And Service Company Limited(600536) , SHENSANGDA, Qi An Xin Technology Group Inc(688561) , etc. Other information and innovation fields focus on Digital China Group Co.Ltd(000034) , Beijing Baolande Software Corporation(688058) and Dawning Information Industry Co.Ltd(603019) of Kunpeng industrial chain and haiguang industrial chain.
Risk warning: policy promotion is not as expected; The government budget fell short of expectations.
