Haitong Securities International·2025-04-10 08:31Investment Rating - The report maintains an "Overweight" rating for the computer sector, indicating a positive outlook for investment in this industry [3][17]. Core Insights - The US tariff policy has increased global supply chain uncertainty, particularly affecting high-tech industries like new-generation information technology. However, the impact on the computer sector is manageable due to its low foreign revenue exposure [3][17]. - The computer sector's foreign revenue is approximately 12%, with total revenue rising from RMB 0.89 trillion in 2019 to RMB 1.21 trillion in 2023. Foreign revenue increased from RMB 113.1 billion to RMB 145.9 billion during the same period [3][17]. - The report identifies several recommended stocks for investment, including Empyrean Technology, Dameng Data, and Beijing Kingsoft Office Software, among others. Beneficiaries of the sector's growth include China National Software & Service and Dawning Information Industry [3][17]. Sector Overview - The computer sector consists of 362 listed companies, with 36 companies reporting foreign revenue exceeding RMB 500 million in 2023. The top five companies by foreign revenue are Hangzhou Hikvision Digital Technology, Ninestar Corporation, Zhejiang Dahua Technology, Digital China, and Inspur Electronic Information Industry [3][17]. - The report highlights that the foreign revenue percentage of total revenue for the computer sector has shown a fluctuating upward trend from 2019 to 2023, with percentages of 11.20%, 11.96%, 10.80%, 11.49%, and 12.05% respectively [3][17]. Company-Level Insights - In 2023, 41 companies had foreign revenue exceeding 30%. The top five companies by foreign revenue percentage include Shenzhen Tvt Digital Technology, Zhuhai Raysharp Technology, Wondershare Technology, Fujian Foxit Software Development, and *ST YouShu, with foreign revenue percentages of 96%, 94%, 91%, 89%, and 88% respectively [3][17]. - The report provides a detailed table of recommended stocks with earnings per share (EPS) forecasts and price-to-earnings (PE) ratios, indicating a generally favorable outlook for these companies [15][17]. Regional Opportunities - The "Belt and Road" initiative presents significant market opportunities for Chinese digital enterprises. The global ICT product trade is accelerating, with China's ICT product exports to the USA accounting for 16.05% of total exports, indicating vast market potential [3][17].