※ Frequent policies emerge, and industrial internet becomes a focus of manufacturing transformation and upgrading
Since the release of “Made in China 2025”, the State Council, the Ministry of Industry and Information Technology, and related ministries have successively introduced a series of policies to support smart manufacturing and the integration of industrialization and informatization, vigorously promoting Internet + manufacturing, smart manufacturing, and advanced manufacturing. The “Smart Manufacturing Development Plan (2016-2020)” released in December 2016 specifically mentions building a foundation for the industrial internet. In November 2017, the State Council issued the “Guiding Opinions on Deepening the Development of Industrial Internet with ‘Internet + Advanced Manufacturing Industry'”, which is a programmatic document for regulating and guiding the development of the industrial internet in China. Recently, the National Manufacturing Power Construction Leading Group established a special working group for the industrial internet. The frequent issuance of policies indicates the country’s full attention to the transformation and upgrading of the manufacturing industry and the industrial internet. The development of the industrial internet is a long-term and ongoing task, with vast potential for imagination.
※ The industrial internet is built in three layers, providing enterprises with “data + model” services
The industrial internet is a new field, platform, and model formed by the deep integration of new generation information technology represented by the internet and industrial systems, and it is a key infrastructure for developing smart manufacturing. It is divided into three layers: network, platform, and security. The network is the foundation, the platform is the core, and security is the guarantee. The network system forms the “blood circulation system” of industrial intelligence, providing guarantees for the interconnection of internal networks within enterprises and for the ubiquitous interconnection and smooth flow of data across all links of the industrial chain. The platform system is responsible for connecting IT and OT within enterprises. The PaaS layer, which provides digital models based on microservice architecture, offers industrial enterprises “data + model” services, which is also the inherent logic of value creation through the integration of information technology and manufacturing technology. The security system is planned, constructed, and operated in sync with the platform system, bringing a large number of emerging security demands for security vendors due to the construction of the industrial internet.
※ The industrial internet releases the immense power of cloud computing, mutually promoting enterprises to go to the cloud
The industrial internet industry system is very broad, and various technologies and applications related to the digital and intelligent transformation of manufacturing enterprises can be considered part of the industrial internet. Since the industrial cloud and the construction of industrial internet platforms mutually promote each other in the actual operation of industrial enterprises going to the cloud, on one hand, the development of the industrial internet drives a large number of small enterprises to purchase SaaS and APP services; on the other hand, the development of the industrial cloud assists enterprises in gradually evolving towards platform-based industrial internet. The construction of enterprise cloud and industrial internet platforms not only supports each other in physical structure, allowing more devices to connect and promoting the construction of network infrastructure, but also mutually promotes each other at the logical level, facilitating the rapid development of cloud computing and industrial internet.
※ Investment Suggestions
Based on the three layers of the industrial internet: network, platform, and security, and considering the benefiting links and company competitiveness, we focus on recommending Youfu Network, Dongfang Guoxin, Baoxin Software, Hand Information, Kingdee International, and Qimingxingchen, and suggest paying attention to Saiyi Information, Dingjie Software, and Weishitong.
Risk Warning: The promotion and implementation of industrial internet-related policies may not meet expectations, the willingness of industrial enterprises to pay may not meet expectations, the degree of replication of industry platforms may not meet expectations, and the profitability of industrial internet platforms may not meet expectations.
Securities Research Report “Computer: Industrial Internet Series Depth II: Clarifying Concepts, Targeting”
Release Date: March 5, 2018
Report Issued by Tianfeng Securities Co., Ltd. (Licensed by the China Securities Regulatory Commission for Securities Investment Consulting Business)
Report Analyst Shen Haibing SAC Practicing Certificate No.: S1110517030001
