According to the Intelligent Finance and Economics APP, Tianfeng Securities released a research report stating that with the landing of the top-level details of the data elements, the accelerated promotion of typical application cases, the industry is expected to undergo a qualitative change. It is suggested by Tianfeng Securities to focus on companies in the subdivided areas of the supply chain logistics that have accumulated massive data and mature data products, including Shanghai Ganglian E-commerce Holdings (300226.SZ), cosco shipping technology (002401.SZ), and Tongxing Bao (301339.SZ). They are currently at historically low valuations, recommended for attention in Q4.

Tianfeng Securities' main points are as follows:

Data elements are accelerating from 'virtual to real', with multiple typical cases in various industries already revealed.

Since the State Council proposed the 'Twenty Data Measures' in December 2022, the data element industry has developed for nearly 2 years. In terms of policies, various top-level policy documents have all been issued, led by the National Data Agency's 'Data Element X' three-year action plan and case competitions, which are accelerating. By the end of the year, 8 detailed policy documents are expected to be issued, continuously improving policy details. On the industrial side, local governments and industry companies are also accelerating the creation of typical application cases for data elements. The National Data Agency has already released two batches of typical cases, with trade circulation and transportation occupying a central position, and a total of 11 cases selected.

Supply chain logistics data has a first-mover advantage, with trade and transportation as key application directions.

Firstly, supply chain logistics data naturally possess a high degree of digitalization and large-scale circulation advantages. The trade supply chain, freight logistics, transportation, and other sectors have formed mature data industry chains, accumulating massive data resources through long-term business operations. Meanwhile, downstream application scenarios are diverse, with continually validated demands, including supply chain management and services, operational efficiency improvement, data analysis and early warning, insurance claims, etc., all having mature applications, possessing a first-mover advantage for large-scale promotion. Additionally, in February 2024, the State-owned Assets Supervision and Administration Commission of the State Council held the Central Enterprise Artificial Intelligence Special Promotion Meeting on 'AI Empowering Industrial Renewal,' targeting the logistics sector as a key area. They will build a batch of high-quality data sets, develop data governance tools, gradually provide data processing and other value-added services externally, and the supply chain logistics industry data is expected to accelerate large-scale applications.

We have sorted out mature applications and leading companies of data elements in trade circulation, marine transportation logistics, and smart transportation, as follows:

(1) Marine Transportation Logistics - Cosco Shipping Technology

The company is a subsidiary of China Ocean Shipping Group responsible for digital shipping and supply chain, smart city business. Centered around the entire lifecycle of ships, it has built a series of data products such as Ship Eye aimed at ship, port, and route analysis, forecasting, and warning. It has gathered basic data on over 0.25 million commercial ships, over 5000 ports, and over 45,000 berths worldwide. By the mid-year report of 2024, the Ship Eye platform of the company has over 0.04 million PC users, a 213% increase from the end of last year, over 0.09 million mobile users, a 38% increase from the end of last year, and over 1200 enterprise users, an 80% increase from the end of last year. The service group covers various areas such as regulation, shipping, logistics, ports, finance, and manufacturing.

(2) Trade Circulation - Shanghai Ganglian E-Commerce Holdings

Shanghai Ganglian E-Commerce Holdings is a global leader in commodity unserved, accumulating databases for 22 industry categories and over 150 segmented application databases, covering over 100 industry chains and over 8000 categories of bulk commodities. By 2023, data service revenue has reached 0.8 billion yuan. As one of the first signed companies of Shanghai Data Exchange, it has listed multiple series of products. Its Baoshan District Shanghai Ganglian Industry Chain Data Integration application is the only successful case selected by the National Bureau of Statistics among the first 20 "Data Element X" typical cases in Shanghai.

(3) Smart Transportation - Tongxing Bao

The company is a subsidiary of Jiangsu Communications Investment Group responsible for smart transportation. It has continuously expanded various related smart transportation businesses using ETC issuance as a carrier, accumulating a vast amount of traffic data. By the mid-year report of 2024, the company has developed approximately 25 million ETC users nationwide, with user coverage across all 30 provinces and municipalities. Based on the ETC scenario, it has created a series of cloud products like Dispatch Cloud, possessing high-quality information from over a million events nationwide and more traffic-related data. It is expected to be applied in smart transportation scenarios such as road network management, travel services, vehicle-road coordination, and road economic development.

Investment recommendation: With the implementation of top-level detailed rules for data elements and the accelerated promotion of typical application cases, the industry is expected to undergo a qualitative change. Supply chain logistics has matured in data accumulation and application models, potentially leading the way in large-scale applications. We recommend focusing on companies in the supply chain logistics subfields with accumulated vast data and mature data products, such as Shanghai Ganglian E-Commerce Holdings, Cosco Shipping Technology, and Tongxing Bao. They are currently at historically low valuations, recommended to be watched closely in Q4.

Risk warning: macro environment risk; policy implementation falls short of expectations; project progress speed is lower than expected.