Sealand: "AI + Manufacturing" Policy released or may drive the release of industrial software demand.

Sealand released a research report stating that on January 7, 2025, the "Special Action Plan for 'Artificial Intelligence + Manufacturing'" was issued. The report believes that with the continuous advancement of policies, domestic leading enterprises will accelerate the layout of industrial large models/industrial intelligent bodies, potentially driving the rapid advancement of artificial intelligence in enabling industrial software innovation, and promoting the development of a new type of industrialization. With the dual driving forces of localization and intelligence, combined with continuous reinforcement of domestic policies, Chinas industrial software industry is expected to enter a period of rapid development. Based on this, the "recommendation" rating for the computer industry is maintained. Key points from Sealand include: The "Plan" aims to create a thousand industrial intelligent bodies, overcoming bottlenecks in industrial software and algorithm tools. The "Plan" indicates that by 2027, China's key core technologies for artificial intelligence will achieve secure and reliable supply, with the industry scale and empowerment level ranking among the best in the world. Efforts will be made to promote the deep application of 3-5 general large models in manufacturing, forming specialized and fully covered industry large models, launching 1000 high-level industrial intelligent bodies, creating 100 high-quality industrial data sets, promoting 500 typical application scenarios, nurturing 2-3 globally influential ecological companies and a group of specialized small and medium-sized enterprises, creating a group of application service providers who are familiar with both intelligence and industries, and selecting 1000 benchmark enterprises. The report believes that the "Plan" emphasizes systematic research and deployment of basic theories, key technologies, and general platforms for development, orderly promotion of high-level intelligent computing facility distribution, aiming to overcome bottlenecks in industrial software, algorithm tools, etc.; highlighting deep integration of scenarios, focusing on core links such as research and development design, production and manufacturing, creating demonstration factories and benchmark scenarios, developing new intelligent body formats, and accelerating the implementation of AI; focusing on industrial ecological construction, proposing the cultivation of system solution providers and industrial clusters, and improving support systems such as standards, safety, and talent. AI covers the entire flow of the manufacturing industry, with the industrial AI penetration rate leading the way in the next three years reaching 60%. According to the research institute of 36Kr, the value of artificial intelligence in the manufacturing industry mainly lies in the commercial and industrial aspects. AI can cover all aspects of the manufacturing industry process, improving the efficiency of each aspect and mining data information generated in each individual aspect, enabling overall forecasting, production, management, and decision-making, achieving refined management and helping companies reduce costs and increase efficiency. Data from the Ministry of Industry and Information Technology show that after intelligent transformation, the research and development cycle of the manufacturing industry is shortened by about 20.7%, the production efficiency increases by about 34.8%, the defect rate decreases by about 27.4%, and carbon emissions are reduced by about 21.2%. According to Xinhuanet Co., Ltd. citing IDC's research, the proportion of Chinese industrial enterprises applying large models and intelligent bodies increased from 9.6% in 2024 to 47.5% in 2025. China Academy of Information and Communications Technology also predicts that the penetration rate of industrial AI will reach 60% in the next three years. AI + manufacturing market prospects are broad, and the industrial software market is expected to exceed 500 billion yuan by 2029. According to data cited by the research institute of 36Kr from Bizwit, the market size of AI applications in the Chinese manufacturing industry is estimated to be around 5.6 billion yuan in 2023. Starting from 2019, the market size growth rate will continue to be above 40%, and the market size is expected to reach 14.1 billion yuan by 2025. According to data from the Prospective Industry Research Institute citing the Ministry of Industry and Information Technology, the revenue from industrial software products in China was 282.4 billion yuan in 2023, a year-on-year increase of 12.3%; in the coming years, as national policies are gradually implemented and China's modern industrialization process accelerates, the scope and depth of industrial software applications will expand, and the industry will continue to maintain steady growth. It is predicted that by 2029, the revenue from industrial software products in China will exceed 500 billion yuan. China's industrial Internet industry will drive trillions of industrial value-added. According to the "China Industrial Internet Industry Economic Development Report (2024)," it is estimated that the core industry value-added scale of China's industrial Internet in 2024 will be 1.53 trillion yuan, an increase of 10.65% compared to 2023; the penetration industry value-added scale will be 3.48 trillion yuan, an increase of 4.70% compared to 2023; the total scale of industrial Internet industry value-added will reach 5.01 trillion yuan, an increase of 6.45% compared to 2023, accounting for 3.81% of GDP, with a stable and increasing role in driving the economy. Focus on individual stocks AI + manufacturing: Shanghai Baosight Software, Digiwin Co., Ltd., Nancal Technology, Hand Enterprise Solutions, Nanjing Sciyon Wisdom Technology Group, Zhejiang Supcon Technology Co., Ltd., Hangzhou Arcvideo Technology Co., Ltd .; AI + design: ZWSOFT, Shanghai Suochen Information Technology, Gstarsoft Co., Ltd., Empyrean Technology, Primarius Technologies, Wondershare Technology Group; AI + management: UFIDA Software, KINGDEE INT'L, Servyou Software Group, INSPUR DIGI ENT, Ygsoft Inc., Yunding Technology, etc. Risk warning: Downstream demand affected by the economy; AI development is below expectations; Uncertainty in the development of AI applications due to laws and regulations; Intensified market competition; Escalation of Sino-U.S. competition; Poor performance of related companies.