The importance of digital economy development in the 14th five year plan is highlighted. The State Council issued the “14th five year plan” for the development of digital economy, which defined the guiding ideology, basic principles, development objectives, key tasks and safeguard measures for promoting the healthy development of digital economy during the 14th Five Year Plan period. According to the plan, during the “14th five year plan” period, the contribution of digital core industries to GDP will be increased from 7.8% to 10%, and the digital economy will develop in an all-round way. The continuous upgrading of information and communication infrastructure has brought significant marginal changes; The IT industry in various vertical fields will develop and deepen under the guidance of policies; The application and format of emerging industries will be cultivated, stimulate new economic growth vitality and drive the all-round development of industries.
The localization trend bears the brunt, and the industry has made remarkable progress. The implementation of it localization in the industry represented by finance has accelerated, and breakthroughs have been made in some core scenarios and business fields. Since 2021, industrial orders have been gradually implemented. In 2022, the scope of localization is expected to be further expanded and the process is expected to be accelerated, involving the transformation and replacement of the overall software and hardware system, driving the development of financial it in the next three years. The financial industry is a key area for the promotion of it localization. Compared with the government market, the product technology requirements are higher, and the continuous expansion of pilot institutions and business scope indicates that the domestic technology ecology is gradually mature, and the localization sector as a whole has entered the fast lane of development.
Xinchuang ecology is expected to stimulate the industrial chain and radiate new opportunities. Domestic processors have accelerated their maturity, and the ecology of Kunpeng, Haiguang and other products has continued to grow. Kunpeng series products are Huawei’s processors authorized based on ARM architecture and independently developed and designed. Kunpeng 920 is the industry-leading leader in the field of ARM processors and domestic chips. Around Kunpeng, Huawei has created a domestic software and hardware ecology, covering server, PC, operating system, database, OA, ERP and other links. It is one of the important promoters in the process of it localization. In finance It has been continuously applied in telecommunications and other fields. Recently, Kunpeng products have won large-scale orders for projects of financial institutions such as Bank Of Communications Co.Ltd(601328) , Agricultural Bank Of China Limited(601288) . Haiguang CPU products have been commercialized and applied in the fields of finance, telecommunications, Internet, education, transportation, etc. in the second half of the year, its No. 3 and No. 4 CPU new products have been verified and developed. At the same time, the company’s DCU products have been produced in small quantities to continuously strengthen the performance and meet the needs of localization. With the development support of China’s upstream semiconductor industry, Xinchuang ecology is expected to drive the domestic IT industry chain and improve its outlook accordingly.
Investment suggestion: “digital economy” is an important promotion direction of national policies and promotes the prosperity of the overall industry sector. We are optimistic about the industrial chain development opportunities brought by localization as the core. We suggest paying attention to the core manufacturers of domestic IT sector: Digital China Group Co.Ltd(000034) , Bringspring Science And Technology Co.Ltd(300290) , Thunder Software Technology Co.Ltd(300496) , Beijing Vastdata Technology Co.Ltd(603138) , Beijing Tongtech Co.Ltd(300379) , Beijing Baolande Software Corporation(688058) , Sinosoft Co.Ltd(603927) , Dawning Information Industry Co.Ltd(603019) .
Risk tip: the progress of policy promotion and implementation is less than expected; The development and application of technology are not as expected; The purchase demand of downstream customers is lower than expected.
