Market performance review: at the beginning of this month, due to the external uncertainty factors such as the sharp rise in the price of oil and other raw materials caused by the continuous conflict between Russia and Ukraine, the market adjusted significantly. On March 16, the financial stability and Development Commission of the State Council held a special meeting to stabilize market sentiment. However, due to the tense epidemic situation in some parts of China, there is great pressure on steady economic growth, superimposed with the Fed’s interest rate hike, the market risk appetite is difficult to repair in the short term, and the market continues to fluctuate. From March 1 to March 31, the Shanghai stock index fell by 6.07%, the CSI 300 index fell by 7.84%, the CSI 500 index fell by 7.71%, and the gem index fell by 8.02%. During this period, the computer industry index fell by 11.59%, 3.75 percentage points behind the CSI 300 index, ranking 27th among the 31 Shenwan industries.
At present, after a sharp correction this year, the overall valuation level of the computer industry has been relatively low, and some subdivided fields begin to have long-term configuration value. In addition to the industrial software and cloud computing industry chain we have always suggested to pay attention to, the cost performance of the network security industry has also begun to appear. Although the government and small and medium-sized enterprise network security project expenditure has been reduced due to macroeconomic pressure and land financial tightening, and the continuous and repeated epidemic in some parts of China has led to the extension of project delivery cycle, which has a certain impact on the performance of the industry last year. However, we believe that the long-term trend of the industry will not change. On the one hand, various cyber attacks in the recent conflict between Russia and Ukraine once again remind us that network security is deeply bound with national security. In the future, under the background of China’s vigorous development of digital economy, the construction of network security industry will become a crucial link. In recent years, the national top-level design level has attached great importance to it, various support policies have been issued, and relevant laws and regulations have been continuously improved, It is expected that the market scale of the industry will continue to grow rapidly in the future. On the other hand, the current industry competition pattern in the Chinese market remains stable, major manufacturers have a solid market position in their respective advantageous fields, and continue to strengthen investment in emerging technologies. In the future, as the macroeconomic uncertainty becomes clearer, the expectations of industry leading enterprises are expected to reverse. It is suggested to pay attention to: Venustech Group Inc(002439) , Nsfocus Technologies Group Co.Ltd(300369) , Sangfor Technologies Inc(300454) , Topsec Technologies Group Inc(002212) , etc.
Risk tips
The deterioration of the international political situation; The implementation of relevant support policies is less than expected; The macroeconomic situation was less than expected.
