Core view
The sector rose 1.0% last week and continued to rebound. We maintain the previous view that the current valuation of the sector is at a low level in recent years. It is expected that in the future, with the gradual passing of the epidemic and the implementation of policies and projects in some fields, the structural market of the computer sector is worth looking forward to. We believe that this year, as the second year of the 14th five year plan, more informatization and digital construction projects will be accelerated from this year. Combined with this year’s macro environment, we are relatively optimistic about the direction of digital government, digital village, informatization of central enterprises, infrastructure it and so on. In addition, from the perspective of marketization, industrial Internet, smart cars and other fields have high growth momentum, which also deserves the attention and attention of investors.
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.
There is a good certainty between digital government and digital village. From the past historical experience, the government’s informatization and digital construction has gradually entered the stage of promotion at the provincial and municipal level. We believe that the digital government projects included in the National College projects, such as the real scene three-dimensional China Construction, will have better policy promotion and financial guarantee. In addition, digital village is not only the strategic direction of rural revitalization, but also an important part of Building Digital China. Driven by relevant policies, the construction of digital village is expected to accelerate during the 14th Five Year Plan period, and relevant companies are expected to benefit.
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 quadratic growth curve of some companies is expected to open this year, and the stock price has a good attraction at present. It is recommended that investors pay attention to it.
“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
Industry digitalization direction: recommend the industry internet platform provider Beijing United Information Technology Co.Ltd(603613) ( Beijing United Information Technology Co.Ltd(603613) , buy). It is recommended to pay attention to the power it leader Ygsoft Inc(002063) ( Ygsoft Inc(002063) , not rated) and coal mine intelligent participant Hefei Gocom Information Technology Co.Ltd(688367) ( Hefei Gocom Information Technology Co.Ltd(688367) , not rated).
Digital government and digital village: recommend Piesat Information Technology Co.Ltd(688066) ( Piesat Information Technology Co.Ltd(688066) , buy), and focus on Xiamen Meiya Pico Information Co.Ltd(300188) ( Xiamen Meiya Pico Information Co.Ltd(300188) , buy), Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) ( Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) , not rated), Beijing Supermap Software Co.Ltd(300036) ( Beijing Supermap Software Co.Ltd(300036) , not rated).
In terms of leading cloud computing companies: recommend Beijing Kingsoft Office Software Inc(688111) ( Beijing Kingsoft Office Software Inc(688111) , overweight), and pay attention to the leading digital architecture company Glodon Company Limited(002410) ( Glodon Company Limited(002410) , not rated).
It is recommended to be the leading enterprise in the field of urban construction (it is recommended to be the leading enterprise in the field of water supply).
Risk tips
The implementation of policies is less than expected, and the progress of R & D is less than expected.
