※ The Industrial Internet is an Inevitable Choice for the Transformation and Upgrading of Manufacturing
The Industrial Internet is the infrastructure for intelligent manufacturing. Its development has gone through several stages including cloud platforms, big data, and the Internet of Things. So far, major economies around the world have focused on platform-level projects such as the Industrial Internet, Industrial IoT, and Industrial Big Data. The essence of the Industrial Internet is to use information technology to assist industrial enterprises in achieving intelligent transformation and upgrading, fundamentally providing services to enterprises through data and models. The development of the Industrial Internet cannot simply replicate the Internet industry; it should start from understanding industry needs and utilize Industrial PaaS and Industrial SaaS to support high-quality, intelligent transformation and upgrading of industrial enterprises.
※ Policy Support and Demand-Driven, the Industrial Internet is an Important Part of New Infrastructure in Technology
In recent years, numerous policies related to intelligent manufacturing and the Industrial Internet have been introduced. Following the release of guiding documents, the development of the Industrial Internet has gradually transitioned from the initial demonstration phase to a stage guided by the state, with various innovative projects and testbed initiatives being launched. At the end of 2018, the Central Economic Conference included the Industrial Internet along with artificial intelligence and 5G in the new infrastructure construction sectors. With the ongoing emphasis on “new infrastructure in technology,” further policies in the Industrial Internet sector can be expected. The demand for the Industrial Internet from industrial enterprises has always existed, but the past inadequacies in the supply of industrial software and data products have constrained the promotion of related information products in industrial enterprises. Currently, monitoring production and improving efficiency have become the main demands of enterprises, which are also the most evident applications of the Industrial Internet platform. Since the second half of 2017, the interest in the Industrial Internet has remained high, with an increasing number of participants in the Industrial Internet platform. Some products from certain enterprises have begun to meet customer needs and solve practical problems after undergoing multiple iterations.
※ The Industrial Internet has Entered a Substantial Implementation Phase with Vast Potential
The Industrial Internet has entered a substantial implementation phase, with rapid development at both the network and platform levels. At the network level, the construction of the identification and resolution system has been rapidly promoted, and five national top-level nodes have been preliminarily established. At the platform level, regional Industrial Internet platforms driven by enterprises moving to the cloud and industry-specific Industrial Internet platforms driven by demand are both developing rapidly. Due to their scarcity, national-level cross-industry and cross-domain platforms have increased competitive advantages, and once a certain amount of data is accumulated, they are expected to achieve platform-level development, with the market space still being vast.
※ Investment Recommendations
We believe that as one of the three main themes of “new infrastructure in technology,” the Industrial Internet has been undervalued compared to 5G and artificial intelligence. From the perspective of policy strength and industrial progress, market expectations are still insufficient, and we recommend paying close attention. From the perspectives of network, platform, security, and application, we particularly recommend: Industrial Internet platform companies such as Dongfang Guoxin, Yonyou Network, Baosight Software, and Hand Information; Industrial Internet security vendors such as Qimingxing Chen; and suggest paying attention to Dongtu Technology, Saiyi Information, and Green Alliance Technology.
Risk Warning: Policy advancement may not meet expectations, profitability of industrial enterprises may decline, and willingness to pay from industrial enterprises may not meet expectations.
Research Report on Securities “Computer: Industrial Internet Series Deep Dive Part Three: Policy Support and Demand-Driven Development of the Industrial Internet from Concept to Implementation“
External Release Date: February 24, 2019
Report Issuer: 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
