Market review and Valuation: this week (01 / 17-01 / 21), Shenwan computer industry rose 4.40%, outperforming the Shanghai and Shenzhen 300 index by 3.29 percentage points, ranking second among Shenwan 31 industries; Shenwan computer sector rose 1.32% in January, outperforming the CSI 300 index by 4.58 percentage points, ranking fifth in Shenwan industry; Shenwan computer sector rose 1.32% this year, outperforming the Shanghai and Shenzhen 300 index by 4.58 percentage points, ranking fifth in Shenwan industry. In terms of valuation, as of January 21, the pettm of SW computer sector was 54.26 times, 42.97% in recent 5 years and 48.24% in recent 10 years.
Industry news: 1. The people’s Bank of China held a meeting of the leading group for the construction of payment service environment of Beijing Winter Olympic Games and a video conference of the working group for the pilot of digital RMB Beijing Winter Olympic Games. 2. Zou LAN, director of the financial market department of the people’s Bank of China, said that as of December 31, 2021, there had been more than 8.0851 million digital RMB pilot scenarios, 261 million personal wallets and a transaction amount of 87.565 billion yuan. 3. According to the Ministry of industry and information technology, in 2021, there were more than 40000 Enterprises above Designated Size in the national software and information technology service industry, with a cumulative software business revenue of 9499.4 billion yuan, a year-on-year increase of 17.7% and a two-year compound growth rate of 15.5%. In 2021, the total profit of the software industry was 1187.5 billion yuan, a year-on-year increase of 7.6%, and the two-year compound growth rate was 7.7%. 4. According to Gartner’s latest forecast, global IT expenditure is expected to reach US $4.5 trillion in 2022, with a year-on-year increase of 5.1%; China’s it expenditure is expected to exceed US $540 billion, an increase of 7.89%. 5. The European Parliament passed the digital services law on the 20th local time with 530 votes in favor, 78 against and 80 abstentions.
Zhou viewpoint: from the recent policy documents issued by the central and local governments, the importance of developing the digital economy and promoting digital transformation is further highlighted. It is suggested to seize the opportunity of China’s digital transformation, focus on the “hardware and software” base, and focus on data elements, data security, data governance and other fields. Suggestions on the subject: Cloud Computing: Yonyou Network Technology Co.Ltd(600588) (600588), Inspur Electronic Information Industry Co.Ltd(000977) (000977), Shanghai Baosight Software Co.Ltd(600845) (600845), Glodon Company Limited(002410) (002410), Beijing Kingsoft Office Software Inc(688111) (688111), etc. Artificial intelligence: Iflytek Co.Ltd(002230) (002230), Zhejiang Dahua Technology Co.Ltd(002236) (002236), Hangzhou Hikvision Digital Technology Co.Ltd(002415) (002415), etc. Securities it: Hundsun Technologies Inc(600570) (600570), etc. Network security: Qi An Xin Technology Group Inc(688561) – U (688561), Venustech Group Inc(002439) (002439), Nsfocus Technologies Group Co.Ltd(300369) (300369), etc. Xinchuang: China Greatwall Technology Group Co.Ltd(000066) (000066), China National Software And Service Company Limited(600536) (600536), Dawning Information Industry Co.Ltd(603019) (603019), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Technology advancement is less than expected; Intensified industry competition, etc.
