Leading software industry is expected to take advantage of the rise

The executive meeting of the State Council yesterday studied and deployed policies and measures to further encourage the development of the software industry and the integrated circuit industry. This means that following the release of the “Policy to Encourage the Development of the Software Industry and the Integrated Circuit Industry” (ie “Document 18”) in 2000, the state’s support policies have continued to increase.

The meeting made it clear that "encouraging and supporting companies to reorganize cross-regional mergers and acquisitions, and strengthen the integration of industrial resources." Analysts believe that this statement is proposed for the first time, which means that the industry leaders are expected to receive key support.

Industry leaders will obviously benefit Zhao Xiaofan, deputy director of the China Software Industry Association, said frankly that the biggest problem in China's software industry is still not getting rid of the pattern of small, scattered and chaotic. To this end, cultivating leading enterprises has become one of the main goals of the development plan for the software and integrated circuit industries in the next five years. According to the information learned by this reporter, during the “12th Five-Year Plan” period, it is planned to cultivate 10 software companies with annual revenues exceeding RMB 10 billion, and the industry concentration is expected to further increase.

At the 2010 China IC Industry Promotion Conference held recently, Xiao Hua, Director of the Electronic Information Department of the Ministry of Industry and Information Technology, also clearly stated that industrial policies should be adjusted in real time according to the state of industrial development. In the industry's initial stage, the policy of inclusiveness should be used, and The industrial structure and policies should be tilted, focusing on cultivating domestic leading enterprises and outstanding enterprises.

Analysts pointed out that the clear support policy will significantly promote the development of related listed companies. Specifically, there is ample room for the development of leading companies that are engaged in nuclear high-profile projects, including China Software, Neusoft Group, and Inspur Information. Among them, China Software is building an important platform for nuclear high-grade projects based on its successful bidder software, and is building a leading domestic software company in the future. At present, the winning software server operating system has used hundreds of sets in the national "Jin'an Project" and "Golden Audit Project" to achieve product substitution for foreign companies. Its operating system brand "Sinopec Puhua" and the National Defense Science and Technology University "Galaxy unicorn" formally merged. According to company insiders, the winning software is expected to further open the military market.

Neusoft Group, China's largest provider of IT solutions and services, its software and systems integration business grew rapidly in the first three quarters of 2010, an increase of 14% year-on-year, accounting for 80% of the company's operating revenue. In addition, the company announced on the 11th that it would acquire 73.14% of Wanghai Kangxin, which is an important provider of application software products for the healthcare industry in China. This move is of great significance for the expansion of the company's medical service business. The business segment is also considered to be the entry of the company. Cloud computing entry point.

Segment market prospects can be divided into two major categories of software industry, namely software products and software services. With the encouragement of “18 Document” and other related policies, after 10 years of development, the proportion of software service industry in the software industry has increased from less than 25% in 2001 to nearly 50%. Shen Yinuo Guo Yinji analyst pointed out that to adapt to the domestic software companies from product to service transition trend, sub-sectors of software service companies more investment value.

According to statistics from the Ministry of Industry and Information Technology, from January to November last year, revenue from information technology consulting services and information technology value-added services were 110.7 billion yuan and 166.6 billion yuan, respectively, a year-on-year increase of 38.8% and 37.5%, respectively, higher than the industry-wide revenue growth rate of 8.8. And 7.5 percentage points. System integration and support services revenue reached 268.4 billion yuan, a year-on-year increase of 27.3%, and the growth rate was 7.8 percentage points higher than the same period of 2009. Software services accounted for 45.2% of total revenue.

Shanxi Securities analyst Gao Fei told reporters that in 2010 the Ministry of Industry and Information Technology subdivided the software technology service sub-sectors into information technology value-added services and information technology consulting and management services and carried out separate statistics. It can also be seen from this point that the scale of software technology services is continuously expanding. . It is expected that the software technology service sub-sector will become the core driving force for accelerating the development of the software industry.

Gao Fei pointed out that among listed companies, Guanglianda is a professional software supplier for the construction industry, NavInfo is a leading company in the field of GIS applications, and Shiji Information is a software provider for the tourism hotel industry. These industries have monopolistic advantages in the subdivided industries. Listed companies will fully enjoy the rapid development of the industry's achievements, the future earnings composition is expected to diversify.

On the other hand, given that high-end equipment has been listed as one of the strategic emerging industries to be vigorously developed by the state, the supporting core software and other areas are more attractive. The threshold of technology, R&D funds, etc. in this field is relatively high. Once a strong position in the industry is formed, it is difficult to be surpassed. It can be said that the “moat” of the listed company is broader.

According to the "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries," the high-end equipment manufacturing industry mainly includes four parts: the aviation industry, space satellite applications, rail transportation equipment, marine engineering equipment, and intelligent manufacturing equipment. Hong Ying Securities analyst Hu Ying pointed out that during the development of China's equipment manufacturing industry, the high-end manufacturing industry will inevitably need to be assisted and strengthened by informatization. Industrial software, as the core control component of the equipment manufacturing industry, will play an increasingly important role. Listed companies in this field include Chuanda Zhisheng (Air Traffic Control Automation System and Air Traffic Control Simulator) and Highland Signal (Navigation Navigation System Solution Provider).

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