Key investment points
Event: on January 12, the State Council issued the "14th five year plan" for the development of digital economy, proposing that by 2025, the added value of core industries of digital economy will account for 10% of China's GDP, and by 2035, the development level of digital economy will be among the highest in the world. Meanwhile, the general secretary of Xi Jinping published an important article "constantly strengthening, optimizing and expanding China's digital economy" in the second issue of Qiushi magazine on January 16, pointing out that compared with the world's digital economy powers, China's digital economy is large but not strong, fast but not excellent. We should give full play to the advantages of Beijing Vastdata Technology Co.Ltd(603138) and enrich application scenarios, and promote the deep integration of digital technology and real economy, Strengthen, optimize and expand China's digital economy.
Heavy Policies occur frequently, highlighting the significance of the digital economy. On December 8, 2021, the national development and Reform Commission and the Ministry of industry and information technology jointly issued the implementation plan on invigorating industrial economic operation and promoting high-quality industrial development, focusing on the layout of a number of new infrastructure projects in 5g, gigabit optical network and other fields, and start the construction project of integrated big data center hub nodes and the infrastructure network improvement project of small and medium-sized cities in central and Western China as soon as possible. Liu Wenqiang, vice president of China Electronics and Information Industry Development Research Institute, and Yu Xiaohui, President of China information and Communication Research Institute, successively published and interpreted "focusing on key points, overcoming difficulties, breaking through blocking points, stable operation and high-quality development of industrial economy" and "giving play to the role of a new engine of digital economy, invigorating industrial operation and helping high-quality development".
The core output value of digital economy has increased to 10%, and the development level ranks among the forefront. In 2020, the added value of China's core industries of digital economy will account for 7.8% of China's GDP, and the world's largest optical fiber and 4G network will be built. The proportion of optical fiber users will exceed 94%, and the penetration rate of mobile broadband users will reach 108%. By 2025, the added value of core industries in the digital economy will account for 10% of GDP, the number of IPv6 active users will increase from 460 million to 800 million, the number of Gigabit broadband users will increase from 6.4 million to 60 million, the scale of software and information technology service industry will increase by 71.6% to 14 trillion, the application penetration rate of industrial Internet platform will increase from 14.7% to 45%, and the national online retail sales will increase by 44.6% to 17 trillion yuan, The scale of e-commerce transactions increased from 37.21 trillion to 46 trillion, and the scale of real name users of online government services doubled to 800 million. By 2035, China will strive to rank among the top in the world in terms of the development foundation of digital economy and the development level of industrial system.
The information network infrastructure has been optimized and upgraded, and the Internet of things has enabled the high-quality and healthy development of the digital economy. The plan puts forward four principles and eight key tasks, requiring optimization and upgrading of digital infrastructure, construction of intelligent digital information infrastructure around high-speed ubiquitous, integration of heaven and earth, cloud network integration, etc., and forward-looking layout of 6G network technology research and development. Specifically, 1) promote the expansion and speed-up of optical fiber network to realize the full coverage of gigabit optical fiber in cities and key towns. 2) Accelerate the large-scale deployment of 5g network, improve the coverage level of the Internet of things in industries, agriculture, emergency management and other fields, and enhance the IOT access capability of solid mobile integration and wide narrow combination. 3) Promote the large-scale deployment and application of IPv6, and deepen the IPv6 transformation of network and application. 4) Accelerate the upgrading of space information infrastructure and build global satellite communication, satellite remote sensing, satellite navigation and positioning systems.
Investment suggestions: we believe that the plan further emphasizes the importance of digital economy, defines the development objectives for digital economy, puts forward four principles and eight key tasks to ensure the healthy development of digital economy, and suggests paying attention to operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; Equipment manufacturer: Zte Corporation(000063) , Fiberhome Telecommunication Technologies Co.Ltd(600498) ; Optical fiber cable: Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) , Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) ; Optical module: Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) , Accelink Technologies Co.Ltd(002281) ; IDC： Shanghai Baosight Software Co.Ltd(600845) 、 Guangdong Aofei Data Technology Co.Ltd(300738) 、 Shanghai Athub Co.Ltd(603881) ； Internet of things: chuangyao technology, Quectel Wireless Solutions Co.Ltd(603236) , Espressif Systems (Shanghai) Co.Ltd(688018) , Meig Smart Technology Co.Ltd(002881) , Queclink Wireless Solutions Co.Ltd(300590) , Fibocom Wireless Inc(300638) ; Sensors: Hanwei Electronics Group Corporation(300007) , Cubic Sensor And Instrument Co.Ltd(688665) , Raytron Technology Co.Ltd(688002) ; Power Internet of things: Leaguer (Shenzhen) Microelectronics Corp(688589) , Willfar Information Technology Co.Ltd(688100) ; Satellite communication: Shanghai Huace Navigation Technology Ltd(300627) , Guangzhou Haige Communications Group Incorporated Company(002465) , China Satellite Communications Co.Ltd(601698) , China Spacesat Co.Ltd(600118) etc.
Risk tip: Sino US trade friction risk; Covid-19 epidemic recurrence risk; Industry competition intensifies risks, etc.
