Event overview: the State Council issued the “14th five year plan” for the development of digital economy, which defined the guiding ideology, basic principles, development objectives, key tasks and safeguard measures to promote the healthy development of digital economy during the 14th Five Year Plan period.
The development of digital economy has accelerated, moving towards a period of comprehensive expansion in 15 years and a period of prosperity and maturity in 25 years. Looking back on the 13th Five Year Plan period, China’s digital economy development strategy has begun to take effect. In 2020, the added value of core industries of digital economy will account for 7.8% of GDP. The plan puts forward eight quantitative indicators for the development of digital economy in the 14th five year plan. It aims to increase the added value of core industries of digital economy to 10% of GDP in 25 years. At the same time, it puts forward quantitative indicators in terms of IPv6 active users, Gigabit broadband users, software and information technology service industry scale. By 2025, we will achieve the goals of preliminary establishment of data element market system, industrial digital transformation to a new level, and significant improvement of digital industrialization level; In 2035, we will strive to form a unified, fair, orderly competition, mature and complete modern market system of digital economy, and the development level of digital economy will be in the forefront of the world.
Accelerate the construction of information network infrastructure, and the communication sector welcomes all-round benefits. The plan focuses on the four major information network infrastructure optimization and upgrading projects, 1) promoting the expansion and speed-up of optical fiber network; 2) Accelerate the large-scale deployment of 5g network; 3) Promote IPv6 scale deployment and application; 4) Accelerate the upgrading of spatial information infrastructure. Improve the coverage level of the Internet of things in industrial manufacturing, agricultural production, public services, emergency management and other fields, and enhance the Internet of things access capability of solid mobile integration and wide narrow combination. We will promote the development of cloud network collaboration and computing network integration, accelerate the construction of a national integrated big data center system with collaborative computing power, algorithms, data and application resources, and continue to promote the construction of a green digital center.
Industrial digital transformation is moving to a new level, and the construction of gigabit optical network is expected to accelerate. In terms of industrial digitization, it has planned seven key industry digital transformation and upgrading projects, carried out industrial digital transformation and application demonstration, and accelerated the innovation and development of industrial Internet. The goal is to increase the application penetration rate of industrial Internet platform from 14.7% to 45% in 20-25 years; Vigorously develop Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) , intelligent water conservancy and intelligent logistics; Accelerate the digital transformation in business, finance and energy. Accelerate the deployment of gigabit optical fiber network and continue to promote the construction of a new generation of optical transmission network with super large capacity, super long distance and intelligent dispatching; The target is to increase the number of Gigabit broadband users from 6 million to 60 million in 20-25 years. According to the data of the Ministry of industry and information technology, the number of Gigabit users has reached 33.86 million in November 21, and the number of 100m users is 496 million. Considering the strong demand for 100m to replace Gigabit, we believe that the number of Gigabit users in 25 years is more than 60 million.
Investment suggestions: in terms of sectors, operators in the field of industrial digitization have the advantages of cloud network integration, with emphasis on China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; The digital economy needs the support of the underlying digital infrastructure. The main equipment mainly recommends Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Huagong Tech Company Limited(000988) , the optical module mainly recommends Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) , the Internet of things mainly recommends Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Shenzhen Neoway Technology Co.Ltd(688159) , and IDC recommends paying attention to Beijing Sinnet Technology Co.Ltd(300383) , Guangdong Aofei Data Technology Co.Ltd(300738) , Kehua Data Co.Ltd(002335) ; The field of smart home benefits from the construction of gigabit optical network. It is recommended to pay attention to Hangzhou Anysoft Information Technology Co.Ltd(300571) , Sichuan Tianyi Comheart Telecom Co.Ltd(300504) ; It is suggested to pay attention to Shanghai Huace Navigation Technology Ltd(300627) in the field of Satellite Internet; It is suggested to pay attention to 3Onedata Co.Ltd(688618) , Beijing Inhand Networks Technology Co.Ltd(688080) in the field of industrial Internet.
Risk tip: the implementation of the policy is not as strong as expected; The demand of downstream industries is lower than expected.
