Important trends in the industry this week:
China Mobile Intelligent home gateway products are intensively purchased, and the development of Gigabit broadband is advancing rapidly
On January 28, China Mobile announced the centralized procurement of smart home gateway products (the first batch) from 2022 to 2023. The first part purchased a total of 20.9525 million smart home gateway products, including 6.8 million GPON dual band WiFi, 5.2275 million GPON dual band WiFi, and 892 million GPON no WiFi 50000 units. The second part purchases a total of 5.35 million smart home gateway products, including 4 million 10g GPON WiFi and 1.35 million 10g GPON WiFi free.
2021 is the turning point of China's Gigabit broadband development. In March 2021, the Ministry of industry and information technology announced the action plan for coordinated development of "dual Gigabit" networks (2021-2023), in which the goal of the first stage is to exceed 10 million Gigabit broadband users by the end of 2021. According to the statistical bulletin of communication industry in 2021, there are 34.56 million users with access rate of 1000Mbps and above, a net increase of 28.16 million over the end of last year, far exceeding the goal of the action plan. We believe that operators may accelerate the construction of Gigabit broadband in 2022.
Investment view this week:
Looking forward to 2022, we will focus on the track of high prosperity and the target of low / undervalued value + reversal logic. Recently, we will enter the stage of intensive disclosure of performance forecast, focusing on the target of exceeding the expectation in the annual report / first quarter report, as well as the high-quality target of matching valuation and performance growth. Key focus: applications in subdivided fields such as communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and industrial Internet have entered the stage of accelerated development, and the growth logic is clear. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. It is suggested to pay attention to: Internet of things / smart car, optical fiber cable / submarine cable, military communication, main equipment, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the marine and new energy sectors have full potential, and the business cycle of optical fiber and optical cable is opened), Hengtong Optic-Electric Co.Ltd(600487) (dual drive of marine + optical fiber and optical cable), Jiangsu Etern Company Limited(600105) (optical communication recovers, and the automobile harness opens the incremental space). It is suggested to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise simultaneously);
3. Optical module & optical device: Zhongji Innolight Co.Ltd(300308) (global digital communication optical module leader), Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) , Broadex Technologies Co.Ltd(300548) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Hebei Sinopack Electronic Technology Co.Ltd(003031) , T&S Communications Co.Ltd(300570) , Cig Shanghai Co.Ltd(603083) ;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / Internet of vehicles: key recommendations: Skyworth Digital Co.Ltd(000810) (Intelligent cockpit + metauniverse VR, combined coverage of household appliances), Shenzhen Topband Co.Ltd(002139) (intelligent controller + energy storage), Fibocom Wireless Inc(300638) , Hanwei Electronics Group Corporation(300007) (combined coverage of machinery), Queclink Wireless Solutions Co.Ltd(300590) , Quectel Wireless Solutions Co.Ltd(603236) , Willfar Information Technology Co.Ltd(688100) (combined coverage of machinery), Meig Smart Technology Co.Ltd(002881) , Cubic Sensor And Instrument Co.Ltd(688665) (combined coverage of machinery); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Shenzhen Neoway Technology Co.Ltd(688159) , Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendations: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix), Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the potential of ocean and new energy sector is full, and the business cycle of optical fiber and cable is started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: key recommendations: Kehua Data Co.Ltd(002335) (joint coverage of power and new technology), Runjian Co.Ltd(002929) (leading private communication network management and maintenance, key breakthroughs in photovoltaic operation and maintenance), Beijing Sinnet Technology Co.Ltd(300383) . It is suggested to pay attention to: Unisplendour Corporation Limited(000938) , Shenzhen Envicool Technology Co.Ltd(002837) , Guangdong Aofei Data Technology Co.Ltd(300738) , Beijing Highlander Digital Technology Co.Ltd(300065) (UDC), Shanghai Athub Co.Ltd(603881) ;
IV. military communication & Beidou: communication is a serious weakness in the field of national defense informatization. The penetration rate of ultrashort wave and area width can be improved. It is suggested to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ;
V. digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) .
Risk warning: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the speed of downstream application recommendation is lower than expected, and the risk of trade war is uncertain.
