Guotai Junan: Government and industry demand resonate, large orders for information technology industry are entering an accelerated implementation phase.

Guotai Junan's research report stated that the information technology industry is experiencing resonance from policies and demand. The Ministry of Industry and Information Technology has introduced key policies to support the information technology industry, which is expected to accelerate the development of the industry. The recent overseas communication infrastructure explosion incident highlights the importance of independent and controllable IT supply chains, which is expected to further strengthen customer willingness to purchase information technology products and drive the industry to achieve development beyond expectations. Guotai Junan's main points are as follows: The Ministry of Industry and Information Technology has introduced key policies to support the information technology industry, which is expected to accelerate industry development. On September 20, 2024, the Ministry of Industry and Information Technology issued a notice on the "Guidelines for Equipment Renewal and Technological Transformation in Key Industries", which requires industries such as aviation, shipping, petroleum, chemical industry, steel, and pharmaceuticals that are related to the economic lifeline and people's livelihood to focus on upgrading information systems, such as computers, servers, operating systems, databases, middleware, and office software. The policy has clearly put forward the requirements for the update of information systems in key industries, which is expected to accelerate the development of the industry. Government and industry demand resonance, information technology big orders are entering an accelerated implementation period. With the continuous improvement of government and industry support policies for information technology, big orders in the field are beginning to accelerate implementation. For example, in the government sector, projects such as the transformation of governmental external networks in Fujian and the rental of cloud services for government information technology in Hangzhou have seen budget investments in the millions. In the industry sector, major projects have been initiated and allocated substantial budgets. These developments indicate that information technology products are gaining momentum and driving the industry beyond expectations. The importance of independent and controllable IT supply chains has been highlighted by a recent overseas incident, and the development of information technology is expected to exceed expectations. According to Xinhua News Agency, on September 17 and 18, there were remote-controlled collective explosions involving pagers and walkie-talkies in Lebanon, resulting in casualties and injuries. Lebanon has launched an investigation into the production, transportation, and distribution processes of the communication devices involved in the explosions, indicating a potential malicious interference in the supply chain. This incident underscores the importance of independent and controllable IT supply chains, which is expected to further enhance customer willingness to purchase information technology products and drive the industry to achieve development beyond expectations. Risk warning: Risks of tight supply of core components and insufficient IT budgets by customers.