According to the CITIC Construction Investment Research Report, the Ministry of Finance will hold a press conference, which is expected to promote the development of computer and other technology industries. Highlights include: 1) promising to meet annual budget targets to strongly support economic development; 2) increasing support in key areas to support scientific and technological innovation; 3) supporting local authorities to resolve hidden debts and clear up arrears to enterprises. Currently, revenue in the computer sector is rising steadily, gross margin is under slight pressure, cost control is more effective under fine management, and profit decline is narrowing. It is expected that as the industry continues to reduce costs and increase efficiency, combined with strengthened fiscal policies, sector profits will continue to pick up, and the scissor gap in revenue and profit growth will be released simultaneously. Investment suggestions: 1) valuation repair+pro-cyclical Hakuba targets; 2) mutual fund and brokerage IT; 3) expected reversal of IT companies; 4) the direction of localization, acceleration of party, government and industry innovation, and the direction of fiscal IT and government procurement of IT; 5) related industry chain enterprises catalyzed by recent events in Huawei and Tesla.

According to the CITIC Construction Investment Research Report, the Ministry of Finance will hold a press conference, which is expected to promote the development of computer and other technology industries. Highlights include: 1) promising to meet annual budget targets to strongly support economic development; 2) increasing support in key areas to support scientific and technological innovation; 3) supporting local authorities to resolve hidden debts and clear up arrears to enterprises. Currently, revenue in the computer sector is rising steadily, gross margin is under slight pressure, cost control is more effective under fine management, and profit decline is narrowing. It is expected that as the industry continues to reduce costs and increase efficiency, combined with strengthened fiscal policies, sector profits will continue to pick up, and the scissor gap in revenue and profit growth will be released simultaneously. Investment suggestions: 1) valuation repair+pro-cyclical Hakuba targets; 2) mutual fund and brokerage IT; 3) expected reversal of IT companies; 4) the direction of localization, acceleration of party, government and industry innovation, and the direction of fiscal IT and government procurement of IT; 5) related industry chain enterprises catalyzed by recent events in Huawei and Tesla.