*** It is urgent to firmly develop China’s digital economy. The digital economy has been promoted to the strategic core position. It is a strategic choice to grasp the opportunities of a new round of scientific and technological revolution and industrial reform.
The requirements and objectives are clear, and the proportion of digital economy is further increased. According to the development plan, by 2025, the added value of the core industries of the digital economy will account for 10% of GDP, the digital economy will move towards a comprehensive expander, the number of IPv6 active users will reach 800 million, the number of Gigabit broadband users will reach 60 million, the scale of software and information technology service industry will reach 14 trillion yuan, and the application penetration rate of industrial Internet platform will reach 45%. The data element market system has been preliminarily established, the digital transformation of industry has reached a new level, the level of digital industrialization has been significantly improved, and the digital economy governance system has been improved.
We will accelerate the construction of information infrastructure and continue to optimize and upgrade digital infrastructure. The plan points out that it is necessary to accelerate the deployment of Gigabit networks, promote the large-scale commercial use of 5g independent networking, prospectively lay out the basic reserves of the sixth generation mobile communication network, increase the support for 6G technology research and development, actively participate in the promotion of international standardization, accelerate the construction of satellite communication networks, promote the large-scale deployment of IPv6, and strengthen the upgrading of spatial information infrastructure, We will improve the coverage of the Internet of things in various fields, enhance the access capability of the Internet of things based on the integration of fixed and mobile technologies and the combination of width and width, promote the development of cloud network collaboration and computing network integration, and orderly promote the intelligent upgrading of infrastructure.
Determine the flow side logic and seize new infrastructure investment opportunities. We believe that after setting the tone of the digital economy, the communication industry, as a supporting industry providing data transmission for the society, will become the hardware base of the digital economy. The subsequent substantial growth of traffic is a deterministic direction, and the continuous construction and expansion of supporting infrastructure is a rigid demand, which will be highly deterministic in the next 3-5 years. Combined with the current global science and technology development trend, overseas science and technology giants have increased capital expenditure and laid out new fields, all pointing to deterministic opportunities on the flow side. The two industrial chains of Telecom side and digital communication side will benefit from the sustainable development of digital economy.
Investment suggestion: core asset operators: China Mobile 600941, China Telecom Corporation Limited(601728) 601728, China United Network Communications Limited(600050) 600050. High quality leading companies on the flow bearing side: Eoptolink Technology Inc.Ltd(300502) 300502, Suzhou Tfc Optical Communication Co.Ltd(300394) 300394, Zhongji Innolight Co.Ltd(300308) 300308. High prosperity and high growth of Internet of things: Meig Smart Technology Co.Ltd(002881) 002881, Fibocom Wireless Inc(300638) 300638, Yealink Network Technology Co.Ltd(300628) 300628. Green communication: Jiangsu Zhongtian Technology Co.Ltd(600522) 600522, Hengtong Optic-Electric Co.Ltd(600487) 600487, Shenzhen Envicool Technology Co.Ltd(002837) 002837. IDC： Guangdong Aofei Data Technology Co.Ltd(300738) 300738、 Kehua Data Co.Ltd(002335) 002335、 Beijing Sinnet Technology Co.Ltd(300383) 300383。 Communication infrastructure: Zte Corporation(000063) 000063, Fujian Star-Net Communication Co.Ltd(002396) 002396. Industrial Internet: Nancal Technology Co.Ltd(603859) 603859.
Risk tip: 5g progress does not meet expectations and trade friction intensifies
