Key investment points:
Market review and Valuation: Shenwan computer sector rose 1.38% this week (05 / 16-05 / 20), 0.85 percentage points lower than Shanghai and Shenzhen 300 index, ranking 23rd in Shenwan industry; Shenwan computer sector rose 0.42% in May, 1.11 percentage points lower than the CSI 300 index, ranking 25th in Shenwan industry; Shenwan computer sector fell 30.82% this year, 13.36 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st in Shenwan industry. In terms of valuation, as of May 20, the pettm of SW computer sector was 38.41 times, at the 1.57% quantile in recent 5 years and 7.81% quantile in recent 10 years.
Industry news: 1. The CPPCC National Committee held a special consultation meeting on “promoting the sustainable and healthy development of digital economy”. Liu He, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, pointed out that the global digital economy is showing new characteristics such as intelligence, quantization and cross-border integration. We should strive to adapt to the all-round changes brought about by the digital economy, fight for key core technologies, support the sustainable and healthy development of the platform economy and the private economy, handle the relationship between the government and the market, support digital enterprises to be listed in the capital markets outside China, promote competition with openness and innovation with competition. 2. Tencent holdings released the first quarter financial report of 2022. According to the financial report, the company’s revenue in the first quarter was 135.5 billion yuan, flat year-on-year; The net profit was 23.4 billion yuan, a year-on-year decrease of 51%. Under non international financial reporting standards, the net profit was 25.5 billion yuan, a year-on-year decrease of 23%. 3. According to the latest report on the tracking of China’s public cloud service market (the second half of 2021) released by International Data Corporation (IDC), the overall market size of China’s public cloud services (IAAs / PAAS / SaaS) reached US $15.13 billion in the second half of 2021. In the next five years, China’s public cloud market will continue to grow at a compound growth rate of 30.9%. It is expected that by 2026, the market scale will reach US $105.76 billion, and the global share of China’s public cloud service market will increase from 6.7% in 2021 to 9.9%. 4. According to Bloomberg, apple showed its upcoming AR / VR device to board members last week, indicating that the device is in an advanced development stage and may debut in the near future. Apple has also accelerated the development of software running on the head display, which is expected to be called “reality OS” or ROS for short.
Zhou viewpoint: the overall profit of industry 22q1 is under pressure, and the performance of subdivided sectors is differentiated. It is suggested that investors should pay close attention to the policy orientation (Digital Economy) – the fields with clear technology evolution trend (Automotive intelligence, AI, financial technology, industrial Internet, cloud computing, etc.), and select the relevant targets with core competitiveness in the subdivided fields from bottom to top and the valuation has been gradually adjusted to a relatively reasonable position. For example, if Inspur Electronic Information Industry Co.Ltd(000977) , Thunder Software Technology Co.Ltd(300496) ( Thunder Software Technology Co.Ltd(300496) . SZ), Hundsun Technologies Inc(600570) ( Hundsun Technologies Inc(600570) . SH), Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) . SH), Shanghai Baosight Software Co.Ltd(600845) ( Shanghai Baosight Software Co.Ltd(600845) . SH), Dawning Information Industry Co.Ltd(603019) ( Dawning Information Industry Co.Ltd(603019) . SH), Qi An Xin Technology Group Inc(688561) -u ( Qi An Xin Technology Group Inc(688561) . SH), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
