Key investment points:
Market review and Valuation: this week (01 / 04-01 / 07), Shenwan computer industry fell 2.50%, 0.11 percentage points lower than Shanghai and Shenzhen 300 index, ranking 21st among Shenwan 31 industries; Shenwan computer sector fell 2.50% in January, 0.11 percentage points lower than Shanghai and Shenzhen 300 index, ranking 21st in Shenwan industry; Shenwan computer sector fell 2.50% this year, 0.11 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 21st in Shenwan industry. In terms of valuation, as of January 7, the PE TTM of SW computer sector was 52.08 times, at the quantile of 30.27% in recent 5 years and 39.94% in recent 10 years.
Industry news: 1. The 2022 National Science and technology work conference was held in Beijing in the form of video. The meeting pointed out that ten aspects of work will be focused in 2022. 2. The Party committee of Shanghai economic informatization work and the municipal economic informatization Committee held a meeting to plan the industry and informatization work in 2022. 3. The digital RMB (pilot version) app has been put on the shelves in major android app stores and Apple App Stores. According to the official introduction, the digital RMB (pilot version) app is the official service platform of China’s legal digital currency – Digital RMB for individual users. It provides the opening and management of digital RMB personal wallet, and the exchange and circulation services of digital RMB. 4. Recently, the national Internet information office and other 13 departments jointly revised and issued the measures for network security review, which will come into force on February 15, 2022. 5, Tesla CEO musk said in Twitter that the price of Tesla FSD will rise to $12 thousand in January 17th.
Zhou’s point of view: it is suggested to grasp the opportunities of China’s digital development and pay attention to the fields with high prosperity and growth certainty. In the medium and long term of cloud computing, SaaS penetration increases and upstream servers recover in the short term. Focus on Inspur Electronic Information Industry Co.Ltd(000977) (000977), Shanghai Baosight Software Co.Ltd(600845) (600845), Glodon Company Limited(002410) (002410), Beijing Kingsoft Office Software Inc(688111) (688111), Yonyou Network Technology Co.Ltd(600588) (600588), etc. Artificial intelligence enables enterprises to reduce costs and increase efficiency. The scenes of automatic driving and education continue to deepen, and the potential market is huge. Pay attention to Iflytek Co.Ltd(002230) (002230), Zhejiang Dahua Technology Co.Ltd(002236) (002236), Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415), etc. Securities it benefits from capital market reform, dividend release, incremental space can be expected, pay attention to Hundsun Technologies Inc(600570) (600570), etc. There are frequent favorable policies for network security, increasing demand in emerging security markets, and paying attention to Qi An Xin Technology Group Inc(688561) – U (688561), Venustech Group Inc(002439) (002439), Nsfocus Technologies Group Co.Ltd(300369) (300369), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
