Digital economy has become the key direction of recent policy deployment
1) the second issue of Qiushi magazine published Xi Jinping general secretary’s important article “constantly strengthening, optimizing and expanding China’s digital economy” on January 16, which planned the future development priorities and ideas from seven aspects.
2) on January 12, the State Council issued the “14th five year plan” for the development of digital economy, which defined the development direction of digital economy in the next five years, and put forward specific quantitative goals such as the added value of core industries of digital economy accounting for 10% of GDP and the application penetration rate of industrial Internet platform reaching 45% by 2025.
Digital industrialization focuses on key technological innovation and focuses on the speed-up of localization of basic tool chain
The plan proposes to “enhance the innovation capacity of key technologies” and “strive to improve the supply capacity of basic software and hardware”. We believe that the current localization has entered the 3.0 stage. Phase 1.0 mainly focuses on the localization of servers and PC machines, and phase 2.0 focuses on the localization of core electronic components, basic materials and production equipment. In phase 3.0, we need to focus on the basic tool chain of TMT industry in the R & D stage, that is, the localization of “basic software and hardware”. The software level takes CAD, CAE, EDA and other modeling and simulation software as the core, and the hardware level takes the scientific instrument of electromagnetic measurement as the core. The localization rate of the basic tool chain is low. With the support of the current industrial policy, the diversified demand of the enterprise supply chain and the superposition of the listing and financing of relevant enterprises, we believe that with the support of the policy, demand and capital, the localization of the basic tool chain will become the key direction of the next localization.
Industrial digitization focuses on improving quality and efficiency under data empowerment, and pays attention to the demand release of traditional industries
The plan proposes to “promote the all-round and whole chain digital transformation of traditional industries and improve total factor productivity.” We believe that the core of industrial digitization lies in the improvement of quality and efficiency of traditional industries under data empowerment, especially the directions mentioned in the policy Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) , intelligent water conservancy, intelligent manufacturing, intelligent energy, spatial informatization and so on. We believe that with the current macro-economy entering the new normal, the capital expenditure of enterprises will change from capacity expansion and channel expansion to internal quality and efficiency improvement. Digital transformation through information investment is expected to become the focus of future capital expenditure of traditional industries. Combined with the current demand changes of various industries, we believe that industrial digitization needs to focus on industries where the demand of downstream industries is at an upward inflection point, including power informatization, intelligent manufacturing and industrial Internet, aerospace informatization, water affairs and heating informatization, and the software and hardware suppliers in these industrial chains are expected to benefit.
Strengthen the security system of digital economy, and data security has become a new investment direction
The plan proposes to “establish and improve the data security governance system and study and improve the industrial data security management policy”. We believe that the “three synchronization” of information construction and network security construction is expected to drive the medium and long-term development of network security industry. Data security will become a new direction of network security industry investment. Data security construction will be divided into three stages. Stage 1.0 focuses on data object security, including database audit, DLP, document audit, etc. Phase 2.0 emphasizes data aggregation security, including the full life cycle and systematic governance framework of data represented by DSMM. The 3.0 phase focuses on data flow security, including privacy computing, federal learning, data safety island, etc.
Suggested concern
Smart car: Thunder Software Technology Co.Ltd(300496) , Huizhou Desay Sv Automotive Co.Ltd(002920) , Autel Intelligent Technology Corp.Ltd(688208) , Arcsoft Corporation Limited(688088) , Guangting information.
Industrial software: Zwsoft Co.Ltd(Guangzhou)(688083) , Zhejiang Supcon Technology Co.Ltd(688777) , Shanghai Baosight Software Co.Ltd(600845) , dingyang technology, Shanghai Hollywave Electronic System Co.Ltd(688682) .
Artificial intelligence: Iflytek Co.Ltd(002230) , Zhejiang Dahua Technology Co.Ltd(002236) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Opt Machine Vision Tech Co.Ltd(688686) , open vision technology.
Network security: Sangfor Technologies Inc(300454) , Dbappsecurity Co.Ltd(688023) , Venustech Group Inc(002439) , Nsfocus Technologies Group Co.Ltd(300369) , Qi An Xin Technology Group Inc(688561) – U.
Risk tips:
1) the epidemic situation intensifies and reduces enterprise informatization expenditure; 2) Fiscal and monetary policies are lower than expected; 3) The supply chain fluctuation increases, affecting the development of science and technology industry.
