Last week, the sector index continued to fall by 4.8%. The performance of the digital infrastructure sector was relatively good, while the performance of other main lines was poor: mainly because 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 left layout for the deterministic direction of the whole year.
This week, some companies disclosed the forecast of the first quarter report. From the disclosure, the growth in the first quarter was basically not affected by the epidemic, and most companies still achieved steady and rapid growth: we still expect smart cars, military informatization, smart coal mines, smart water and some leading cloud computing companies to have good performance, and investors can actively pay attention to the high bid increase in the first quarter report. However, the current market is pessimistic about the fundamentals of the second quarter, and the subsequent changes deserve further attention.
There is a good certainty between the party and government information innovation and the digitization of central enterprises and key industries. This year’s complex and changeable macro situation has a certain impact on the operation of many industries. However, we believe that the party, government and information innovation at the county and township level has good policy certainty, while the digital construction of central enterprises, state-owned enterprises, finance, energy and other key industries is less affected by the macro economy. These fields have good certainty this year.
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 secondary growth curve of some companies is expected to open this year, and the stock price is currently at a low level. It is recommended that investors 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
Investment proposal and investment object
In terms of Xinchuang and digitalization of central state-owned enterprises: recommend Beijing Kingsoft Office Software Inc(688111) ( Beijing Kingsoft Office Software Inc(688111) , overweight), and pay attention to Ygsoft Inc(002063) ( Ygsoft Inc(002063) , not rated), Pansoft Company Limitid(300996) ( Pansoft Company Limitid(300996) , not rated), Shanghai Weaver Network Co.Ltd(603039) ( Shanghai Weaver Network Co.Ltd(603039) , not rated), Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) , buy), Beijing Seeyon Internet Software Corp(688369) ( Beijing Seeyon Internet Software Corp(688369) , not rated).
Leading companies in cloud computing: it is recommended to pay attention to the leader of digital architecture Glodon Company Limited(002410) ( Glodon Company Limited(002410) , not rated) and Kingdee International (00268, not rated), the leader of cloud management software.
Industrial digitization direction: recommend industrial Internet platform Beijing United Information Technology Co.Ltd(603613) ( Beijing United Information Technology Co.Ltd(603613) , buy), and pay attention to coal mine intelligent participants 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).
Risk tips
The digital upgrading of state-owned enterprises is less than expected; Industrial digital upgrading is less than expected; The development of “new urban construction it” is less than expected
