Event overview:
The two sessions will be held in 2022. Looking back on the previous policy catalysis, we believe that the localization of information may replace or usher in a new business cycle, and we are optimistic about the market of Xinchuang.
In recent half a year, the policy support of multi industry information innovation has been continuous
1) reviewing the innovation policies in the past half year, we found that policies have been implemented continuously in the field of information, especially in the field of localization of subdivided industries. Finance, education, transportation, construction and other industries have relevant policy support. The industrial maturity has been continuously improved, the penetration rate has been continuously increased, the orders have continued to increase, and the industry's information and innovation prospects have become broader.
2) the National Informatization Plan of the 14th five year plan shows the trend of accelerating the penetration rate. The National Informatization Plan of the 14th five year plan, which was triggered earlier, gives quantitative indicators of specific development in many aspects such as the overall development level of informatization, digital facilities and innovation ability, indicating the determination to improve informatization.
The two elements of localization + informatization will continue to promote the localization substitution of software. As the pioneer of informatization localization substitution, Xinchuang project will continue to benefit during the 14th Five Year Plan period.
2022 will usher in the dual drive of financial industry + sinking market substitution
According to the development process of "2 + 8 + n" information innovation, the party and government information innovation started the earliest, and the follow-up focus is to sink and deepen the application to the district and county-level market (localization substitution of e-government system);
Financial innovation is the fastest in the industry, and it is expected to accelerate both in breadth (pilot scope) and depth (from edge system to core system) in 2022; Medium and long term perspective: during the 14th Five Year Plan period, the credit innovation policy is expected to increase, promote the expansion of the credit innovation application from the leading field to the whole field, and form a new pattern of the development of the credit innovation application; Catalyst: with the two sessions approaching in 2022, Xinchuang is expected to obtain a strong catalyst
Investment advice
This year, the promotion of Xinchuang may focus on financial and other subdivided industries and sinking market substitution. Looking back on the relevant policies of ICT before and after the two sessions, we believe that a new round of ICT business cycle will be ushered in under the catalysis of the two sessions.
Core recommendation: domestic middleware leader Beijing Tongtech Co.Ltd(300379) , domestic WPS leader Beijing Kingsoft Office Software Inc(688111) (jointly covered with small and medium-sized disk groups). Other beneficiaries include: 1) domestic server leader Dawning Information Industry Co.Ltd(603019) ; 2) Domestic PDF leader Fujian Foxit Software Development Joint Stock Co.Ltd(688095) ; 3) Operating system field: China National Software And Service Company Limited(600536) , Archermind Technology (Nanjing) Co.Ltd(300598) ; 4) CPU chip field: China Greatwall Technology Group Co.Ltd(000066) ; 5) GPU graphics card field: Changsha Jingjia Microelectronics Co.Ltd(300474) .
Risk tips
1. The promotion progress of Xinchuang policy is less than expected. 2. The listing of core asset enterprises is not progressing smoothly. 3. The intensification of competition in the industry leads to the decline of enterprise profitability
