Cathay Pacific Junan: The government system is connected to DeepSeek, optimistic about investment opportunities in government IT and state-owned cloud

The Zhitong Finance App learned that Guotai Junan released a research report saying that recently, government departments in many places have deployed DeepSeek locally. Similar to the financial industry, the government sector also has corresponding data privacy requirements and credit innovation requirements. Local deployment or state-owned cloud deployment is the best solution. The introduction of AI technology is not a simple tool change, but a deep reshaping of government service concepts and models. As application scenarios expand, local computing power demand or the computing power demand for state-owned clouds will continue to be released, and government IT companies and state-owned cloud operators are expected to fully benefit.

Guotai Junan's main views are as follows:

Government departments in many places deploy DeepSeek locally

On February 16, the Guangzhou Municipal Affairs Service and Data Administration recently officially deployed and launched the DeepSEEK-R1 and V3 671B full-scale models on the government extranet. On the same day, Shenzhen officially provided DeepSeek model application services to departments in all districts of the city based on the government cloud environment, and government officials in many places announced that they would be connected to DeepSeek. Guotai Junan believes that similar to the financial industry, the government sector also has corresponding data privacy requirements and credit innovation requirements; local deployment or state-owned cloud deployment is the best solution.

DeepSeek's integration into government processes helps the government greatly improve efficiency and increase the demand for state-owned cloud computing power

As a key area closely related to people's lives, government services are facing an urgent need for continuous optimization and upgrading. Combining the model's black box computing power with the white box for logical judgment, and integrating local model capabilities into the existing “One Network Access” and “One Network Management”, it is expected that the efficiency of government services will be greatly improved. The introduction of AI technology is not a simple tool change, but a deep reshaping of government service concepts and models. As application scenarios expand, local computing power demand or the computing power demand for state-owned clouds will continue to be released, and government IT companies and state-owned cloud operators are expected to fully benefit.

Public data can be used as an external knowledge base, and can also be exported in combination with data elements

After the model is deployed locally, you can first attach various local knowledge bases. The government affairs system has accumulated a large amount of business data and files over the years, all of which can enhance the professional capabilities of the local DeepSeek model in the form of RAG. At the same time, such knowledge bases can also be opened to the public as data element products, empowering external model capabilities on the premise of ensuring data security, and creating new business models for government IT companies.

Recommended targets: Xindian Software (688232.SH), Taiji Co., Ltd. (002368.SZ), Digital Government Communications (300075.SZ).

Beneficiaries: Shenzhen Sanda A (000032.SZ), Yi Hualu (300212.SZ), Yunsai Zhilian (600602.SH), Radio and Television Express (002152.SZ), etc.

Risk warning: Financial IT spending falls short of expectations, and competition increases risk.