The sector index fell 3.8% last week, with only thematic directions such as digital currency performing better. As the epidemic has not yet shown positive changes, the market’s pessimism towards the sector has not decreased. We believe that the policy and demand side of the whole year are still positive, so it is suggested that investors can make a certain layout for the deterministic direction of the whole year. In addition, in the context of the epidemic, the operation in the first quarter will be the core and focus of the market. Overall, we expect smart cars, geographic informatization, smart coal mines, smart water and some leading cloud computing companies to have good performance. Investors can actively pay attention to the high bid increase in the first quarter.
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, and the secondary growth curve of some companies is expected to open this year. Investors are advised to pay attention to it.
Industrial digitization is expected to accelerate. The government work report mentioned “promoting industrial digital transformation”. We believe that industrial Internet platform companies deserve attention, and the digital leaders of subdivided industries such as electric power and coal mine will also usher in the 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 puts forward 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.
Real 3D China Construction will usher in the peak of development, and geographic information enterprises are expected to benefit. In February this year, the notice on comprehensively promoting the construction of real 3D China issued by the general office of the Ministry of natural resources further defined the construction objectives, construction tasks, construction division and construction requirements of real 3D China. Geographic information enterprises with strong comprehensive strength and deep understanding of the industry are expected to obtain greater opportunities.
Investment proposal and investment object
Cloud Computing: we recommend leading digital office Beijing Kingsoft Office Software Inc(688111) ( Beijing Kingsoft Office Software Inc(688111) , overweight), and we suggest paying attention to leading digital architecture Glodon Company Limited(002410) ( Glodon Company Limited(002410) , not rated) and Kingdee International (00268, not rated), a leader in cloud management software.
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 the leader of intelligent water supply Zhejiang Heda Technology Co.Ltd(688296) ( Zhejiang Heda Technology Co.Ltd(688296) , buy), and pay attention to the leading enterprise of intelligent heating Runa Smart Equipment Co.Ltd(301129) ( Runa Smart Equipment Co.Ltd(301129) , not rated).
Geographic information field: recommend Piesat Information Technology Co.Ltd(688066) ( Piesat Information Technology Co.Ltd(688066) , buy), pay attention to Beijing Supermap Software Co.Ltd(300036) ( Beijing Supermap Software Co.Ltd(300036) , not rated), Geovis Technology Co.Ltd(688568) ( Geovis Technology Co.Ltd(688568) , not rated).
Risk tips
The implementation of policies is less than expected, and the progress of R & D is less than expected.
