The Zhitong Finance App learned that Galaxy Securities released a research report saying that on January 4, 17 departments including the National Data Administration jointly issued the “Data Elements ×” Three-Year Action Plan (2024-2026). The “Action Plan” is a refinement of the top-level design of data elements. It is expected to accelerate the construction of data element infrastructure and enable the industry to release the application value of data elements, focusing on listed companies in the industrial chain: 1. Central enterprises state-owned background data operators: E-Hualu (300212.SZ), Shenzhen Sanda A (000032.SZ), Yunsai Zhilian (600602.SH), and Radio and Television Transport (002152.SZ). 2. Data resource holders: Shanghai Steel Union (300226.SZ), Aerospace Hongtu (688066.SH), Zhongke Xingtu (688568.SH). 3. Data element application providers: Chaotu Software (300036.SZ), Zhongke Jiangnan (301153.SZ), Yinzhijie (300085.SZ), Jiuyuan Yinhai (002777.SZ), Guoxin Health (000503.SZ).

The main views of Galaxy Securities are as follows:

Incident: On January 4, 17 departments including the National Data Administration jointly issued the “Data Elements ×” Three-Year Action Plan (2024-2026)” (hereinafter referred to as the “Action Plan”).

The top-level design has been further refined and improved, and the development of the data element industry is on the right track. The Action Plan emphasizes four basic principles, including adhering to demand leadership, focusing on practical results, piloting first, key breakthroughs, effective markets, promising government, open integration, and safety and order, and clarifies the work goals until the end of 2026. We believe that the “Action Plan” is no more than a month between the draft solicitation of comments and publication, which fully reflects the importance that the National Data Administration attaches to data element infrastructure and institution-building. There is an urgent need for data elements to empower the economy to improve quality and efficiency. The three major aspects of data element supply, circulation, and application will usher in vigorous development, which is expected to open up a blue ocean of trillion-dollar industries.

Focus on the scenario-based implementation of 12 industries to give full play to the multiplier effect of data elements. The “Action Plan” selects 12 industries and fields, including industrial manufacturing, modern agriculture, trade circulation, transportation, financial services, scientific and technological innovation, cultural tourism, health care, emergency management, meteorological services, urban governance, green and low carbon, etc., to promote the multiplier effect of data elements and unleash the value of data elements. We believe that this time, the “Action Plan” focuses more on actual application scenarios in the industry. The data has characteristics such as increasing marginal benefits, low marginal costs, and easy replication. It acts on different subjects, and when combined with different factors, can produce varying degrees of scale multiplier effects. Industries such as industrial manufacturing, financial services, technological innovation, and trade circulation are expected to take the lead. The reason is that such industries: 1) are more sensitive to market changes and pay more attention to data-driven decision-making methods; 2) they have a high degree of marketization, abundant accumulation of data resources, and a first-mover advantage in the application of data elements; 3) they have a high degree of digital transformation, and data elements exert significant multiplier effects. These industries are expected to take the lead in unlocking value and expanding new space for economic growth through the three methods of data openness, sharing, and trading.

Public data licensing operations are expected to be liberalized, and data operators will play an important role. The Action Plan proposes: 1) improving the data resource system; 2) increasing the supply of public data resources; 3) guiding enterprises to open up data. 4) Improve the standard system; 5) Strengthen supply incentives. We believe that central state-owned enterprises and local government data resources are more economically valuable, and that public data licensing and operation policies are expected to be introduced in the future. Data operators play an important role in promoting market-based allocation of data elements, focusing on three types of vendors: 1) central enterprise background data element operators: top-level design considers overall development and security; 2) local state-owned background data operators: involving the establishment of local “data finance” institutional mechanisms; 3) data holders: data resource endowments in segmented fields are strong.

Investment advice

The “Action Plan” is a refinement of the top-level design of data elements, which is expected to accelerate the construction of data element infrastructure and enable the industry to release data element application value, focusing on listed companies in the industrial chain: 1. Central enterprises state-owned background data operators: E-Hualu, Shenzhen Sanda A, Yunsai Zhilian, Radio and Television Transport; 2. Data resource holders: Shanghai Steel Union, Aerospace Hongtu, Zhongke Star Map; 3. Data element applications: Chaotu Software, Zhongke Jiangnan, Yinzhijie, Jiuyuan Yinhai, and Guoxin Health.

Risk warning

Technology research and development progress falls short of expectations risk; supply chain risk; risk of policy advancement falling short of expectations; risk of consumer demand falling short of expectations; risk of industry competition increasing risk.