The 2nd World Internet Conference (WIC) will be held in Wuzhen, Tongxiang City, Zhejiang Province from Dec.16 to Dec.18. In comparison with the first WIC in 2014, this year’s WIC is marked by high level and unprecedented scale. Industrial insiders generally believe that, as internet economy has become a current trend, the conference will attract the attention from the world and significantly stimulate related industries. With the spread of the good news, relevant concept stocks in four sectors, including internet security, cloud computing, 4G and 5G, and “Internet Plus” all rallied yesterday. Notably, 73 leading stocks witnessed net inflow from block trading of more than 10 million yuan respectively, and a cumulative net inflow hitting 3,440 million yuan.
Internet security: four leading stocks jumped more than 7 pct
In the previous session, internet security stocks stand out on the two bourses, and the sector increased by 2.83 percent overall. In terms of individual share, Beijing Miteno Communication Technology Co., ltd. (300038.SZ) soared by the daily limit of 10 percent; Bluedon Information Security Technologies Co., ltd. (300297.SZ), ChengDu Westone Information Industry Inc. (002268.SZ) and Xiamen Meiya Pico Information Co., Ltd. (300188,SZ) all hiked over 7 percent, gaining 8.83 percent, 7.62 percent and 7.13 percent, respectively.
In respect of capital flow, six internet security stocks recorded net inflow from block trading of more than 10 million yuan respectively, and attracted 578 million yuan in the aggregate. Bluedon Information Security Technologies ranked the first with an amount of 324 million yuan, followed by ZTE Corporation (000063.SZ) with 88,024,600 yuan. The other four stocks are Beijing Xinwei Telecom Technology Group Co., Ltd. (600485.SH), Venustech Group Inc. (002439.SZ), Miteno Communication Technology and Beijing Teamsun Technology Co., Ltd. (600410.SH) attracted 67,552,700 yuan, 54,782,200 yuan, 24,462,000 yuan and 18,394,100 yuan, respectively. Such stocks chased by capitals are expected to continue to soar in the near term.
From the status of internet industry, data shows that China’s investment in internet security accounts for just about 2 percent of IT construction costs, leaving a room of hundreds of billions yuan in comparison with approximately 10 percent in developed countries in the West. As the formulation of internet security law is accelerated and domestic internet security demand is increased, internet security stocks are expected to embrace upbeat prospect in the long run.
Cloud computing: investment themefor 2016
Cloud computing stocks performed well in the previous trading day. Over 9 percent of individual shares in this sector surged to various degrees: Sichuan Golden Summit (Group) Joint-Stock Co., Ltd. (600678.SH) soared to the daily limit of 10 percent; Inspur Software Co., Ltd. (600756.SH) (7.77 percent), Westone Information Industry (7.62 percent), Jiang Su Etern Co., ltd. (600105.SH) (7.41 percent), Shenzhen Keybridge Communications Co., Ltd. (002316.SZ) (6.59 percent), Beijing Sinnet Technology Co., Ltd. (300383.SZ) (6.56 percent), Net263 Ltd. (6.02 percent) and Jiangsu Zhongtian Technology Co., Ltd. (600522.SH) (5.54 percent) all rose by more than 5 percent.
As to capital flow, of the 55 cloud computing shares traded in the market, Iflytek Co., Ltd. (002230.SZ) ranked the first with an inflow amount of 172 million yuan, followed by Net263 with 160 million yuan; besides, Golden Summit (Group) Joint-Stock (88,340,400 yuan), ZTE (88,024,600 yuan), Dr.peng Telecom & Media Group Co., ltd. (600804.SH) (62,269,800 yuan), United Electronics Co., Ltd. (002642.SZ)(59,117,600 yuan), Inspur Software (54,083,100 yuan), Wangsu Science & Technology Co., ltd. (300017.SZ) (51,661,200 yuan) and Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) (51,044,300 yuan) all had capital inflow from block trading of more than 50 million yuan.
Haitong Securities indicated that for both supply side reform and the“13th Five-year Plan”，IT innovation will serve as important impetus promoting economic development and upgrading of industrial structure. Under this background, cloud computing and big data are the two most important investment themes for 2016. Relevant leading stocks are as the following: Jiangsu HopeRun Software Co., Ltd. (300339.SZ), an undervalued IT company with advantage in core banking IT system; Beijing E-Hualu Info Technology Co., Ltd. (300212.SZ), a big data operator for government and smart transportation big data application provider; NetPosa Technologies, Ltd. (300367.SZ), a leading video big data analytic technology and smart transportation application provider; Pci-suntek Technology Co., ltd. (600728.SH), which expected to benefit from the expansion of application scenarios of facial recognition technology and sound development of smart security and protection industry; Beijing Jetsen Technology Co., Ltd. (300182.SZ), which focuses on video and audio ecosphere; Shanghai Baosight Software Co., Ltd. (600845.SH), a leading player in IDC sector and a potential industry 4.0 solution provider.
4G & 5G: focus on five stocks whose annual performances doubled
As a technologically supporting sector to the development of China’s internet industry, the communications industry represented by 4G and 5G have seen increasingly bullish prospectus. Under the background of the WIC, conceptive stocks related to 4G and 5G are rising. Individual stocks strongly soared by the daily limit of 10 percent yesterday, including Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ), Boomsense Technology Co., Ltd. (300312.SZ), Miteno Communication Technology and Huagong Tech Company Limited (000988.SZ). Additionally, other individual stocks increased by over 5 percent, such as Sunwave Communications Co., Ltd. (002115.SZ), Etern, Keybridge Communications, Zhongtian Technology, Fujian Sunnada Communication Co., Ltd. (002417.SZ) and Wuhan Yangtze Communication Industry Group Co., Ltd. (600345.SH).
In terms of capital flow, 20 conceptive stocks related to 4G and 5G recorded net capital inflow from block trading exceeding 10 million yuan respectively yesterday, and some individual stocks even saw capital inflow of higher than 50 million yuan, such as Huagong Tech (266,952,100 yuan), ZTE (88,024,600 yuan), Xinwei Telecom Technology (67,552,700 yuan), Shenglu Telecommunication Tech. (65,645,100 yuan), Sunwave Communications (57,571,700 yuan) and Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) (51,044,300 yuan).
The industrial prosperity can also be evidenced by favorable annual performances. Statistics shows that, up to yesterday, 21 conceptive stocks related to 4G and 5G have disclosed their annual performance announcements, with 13 of them reporting satisfied forecasts. It is worthy to notice that the listed companies, which are expected to have the largest net profit growth rate of over 100 percent, are set out below: Shenglu Telecommunication Tech. (169.63 percent), Dingli Corp., Ltd. (300050.SZ) (160.00 percent), Keybridge Communications (115.73 percent), Sunnada Communication (160.13 percent) and Suzhou Chunxing Precision Mechanical Co., Ltd. (002547.SZ) (100.00 percent).
Internet Plus: benefits from policies to constantly release
“Internet Plus” strategy speeds up its step to enter into various industries. Under such situation, the capital market is most optimistic about fields related to “Internet Plus”, such as internet finance, internet medical treatment, internet education and internet automobile, and once aroused a series of dramatically-bullish stocks, including Hithink RoyalFlush Information Network Co., Ltd. (300033.SZ) and Guangdong Qtone Education Co., Ltd. (300359.SZ). Market participants indicate that bullish stocks will still concentrate in the fields related to “Internet Plus” in the future.
Actually, policies continue to benefit the fields related to “Internet Plus” in recent period, which will push a faster and more stable growth for the industry and benefit future performance of related listed companies. On Dec. 14, the Ministry of Industry and Information Technology issued a notice on releasing the Action Plan (2015-2018) to fully implement the Guidelines on Positively Promoting “Internet Plus” Action by the State Council. It is learnt that related authorities, like National Health and Family Planning Commission, are carrying out top-level design, formulating specific incentives, revising and improving the existing laws and regulations, including Practicing Physicians Law and Management Regulation on Medical Institutions, to adapt to the development of internet medical treatment.
Translated by Jelly Yi and Adam Zhang
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