Key investment points:
Market review and Valuation: Shenwan computer sector fell 3.63% this week (04 / 25-05 / 01), 3.71 percentage points lower than Shanghai and Shenzhen 300 index, ranking 24th in Shenwan industry; Shenwan computer sector fell 17.03% in April, 12.14 percentage points lower than CSI 300 index, ranking 31st in Shenwan industry; Shenwan computer sector fell 31.11% this year, 12.41 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 29th in Shenwan industry. In terms of valuation, as of April 29, the PE TTM of SW computer sector was 37.11 times, at the 0.00% quantile in recent 5 years and 5.86% quantile in recent 10 years.
Industry news: 1. Huawei released its operating results in the first quarter of 2022, achieving sales revenue of 131 billion yuan, down 13.9% from 152.2 billion yuan last year; During the same period last year, the net profit margin was 11.4%. 2. Intel announced the first quarter results of fiscal year 2022. Intel's revenue in the first quarter was $18.4 billion, down 7% from $19.7 billion in the same period last year; The net profit was US $8.1 billion, an increase of 141% compared with us $3.4 billion in the same period last year. 3. Amazon released the results of the first quarter financial report as of March 31, 2022. Amazon cloud technology's operating profit in the first quarter was US $6.52 billion, a year-on-year increase of 57%; The operating profit margin was 35.3%, 30.8% in the same period last year and 29.8% in the previous quarter. 4. Microsoft announced its financial results for the third quarter of fiscal year 2022 (as of March 31), with revenue of US $49.4 billion, a year-on-year increase of 18%; The net profit was US $16.7 billion, a year-on-year increase of 8%. Microsoft attributed much of the quarter's growth to cloud computing related businesses. The revenue of its server and cloud services sector increased by 29%, while Microsoft cloud increased by 32%, reaching a total of $23.4 billion. 5. Alphabet (the parent company of Google) released the first quarter financial report of fiscal year 2022 as of March 31. In the first quarter, the Google cloud business revenue of the Google division of alphabet was $5.821 billion, compared with $4.047 billion in the same period last year.
Zhou viewpoint: from the recent policy documents issued by the central and local governments, the importance of the digital economy will be further highlighted and is expected to become one of the important driving points for steady growth this year. It is suggested that investors seize the opportunity of China's digital transformation, focus on the "hardware and software" base, and focus on data elements, data security, data governance and other fields. Suggestions on the subject matter: securities asset management it: Hundsun Technologies Inc(600570) ( Hundsun Technologies Inc(600570) ), etc. Cloud Computing: Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) ), Inspur Electronic Information Industry Co.Ltd(000977) ( Inspur Electronic Information Industry Co.Ltd(000977) ), Shanghai Baosight Software Co.Ltd(600845) ( Shanghai Baosight Software Co.Ltd(600845) ), Glodon Company Limited(002410) ( Glodon Company Limited(002410) ), etc. Xinchuang: Dawning Information Industry Co.Ltd(603019) ( Dawning Information Industry Co.Ltd(603019) ), China Greatwall Technology Group Co.Ltd(000066) ( China Greatwall Technology Group Co.Ltd(000066) ), China National Software And Service Company Limited(600536) ( China National Software And Service Company Limited(600536) ), etc. Network security: Venustech Group Inc(002439) ( Venustech Group Inc(002439) ), Qi An Xin Technology Group Inc(688561) -u ( Qi An Xin Technology Group Inc(688561) ), Nsfocus Technologies Group Co.Ltd(300369) ( Nsfocus Technologies Group Co.Ltd(300369) ), etc. Artificial intelligence: Iflytek Co.Ltd(002230) ( Iflytek Co.Ltd(002230) ), Zhejiang Dahua Technology Co.Ltd(002236) ( Zhejiang Dahua Technology Co.Ltd(002236) ), Hangzhou Hikvision Digital Technology Co.Ltd(002415) ( Hangzhou Hikvision Digital Technology Co.Ltd(002415) ), etc. Intelligent automobile: Thunder Software Technology Co.Ltd(300496) ( Thunder Software Technology Co.Ltd(300496) ), Huizhou Desay Sv Automotive Co.Ltd(002920) ( Huizhou Desay Sv Automotive Co.Ltd(002920) ), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
