Report summary
I. China Mobile launched the public centralized acquisition of base station antennas in 2022. China Mobile launched the public centralized purchase of base station antennas in 2022, and will purchase a total of 486148 base station antennas. The base station antennas purchased this time are divided into 4 categories and 17 models, including urban and rural base station antennas, high-speed rail antennas, lens antennas and special scene antennas. Among them, urban and rural base station antennas mainly include: high gain fa / D dual frequency electrically adjustable smart antenna and fa / D dual frequency electrically adjustable smart antenna, with a total of 86400 antennas. High speed rail antennas include “2 + 2 + 2 + 8” high-speed rail smart antennas, with a total of 19400. Lens antennas include “2 + 2” 1800 / FA dual frequency lens antenna and “2 + 2 + 4” 1800 / fa / D triple frequency lens antenna, with a total of 9500. Special scene antennas include: high-rise 900-d full frequency two port vertical large angle antenna, high-rise 900-d full frequency two port horizontal large angle antenna, high-rise 1800-d broadband two port vertical large angle antenna, high-rise 1800-d broadband two port horizontal large angle antenna, high-rise 900 / 1800-d dual frequency four port vertical large angle antenna, high-rise 900 / 1800-d dual frequency four port horizontal large angle antenna Tunnel 900-d full frequency 2-port antenna, elevator 900-d full frequency 2-port antenna, outdoor distribution system 1800-d broadband antenna (including spotlight camouflage) (8dbi), outdoor distribution system 1800-d broadband antenna (including spotlight camouflage) (11dbi), outdoor distribution system 900-d dual port broadband antenna (including spotlight camouflage), outdoor distribution system 900 / 1800-d four port dual frequency antenna (including spotlight camouflage), A total of 376000. We believe that the antennas purchased this time are mainly 4G antennas, with a total purchase budget of 590 million. Relevant antenna manufacturers are expected to benefit. Attention: Tongyu Communication Inc(002792) , Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) .
II. Ministry of industry and information technology: during the Spring Festival in 2022, the Internet access traffic increased by 22% year-on-year. The Ministry of industry and information technology released a report that the 2022 Spring Festival coincides with the opening of the Winter Olympic Games, with a strong festival atmosphere. The new digital lifestyle fully covers all kinds of social, entertainment and consumption scenes. Driven by this, the 7-day mobile Internet access traffic during the Spring Festival holiday reached 4.349 million TB (1TB = 1024gb), an increase of 21.7% compared with the 7-day Spring Festival in 2021, with a growth rate of more than 20% for three consecutive years.
Among them, January 31 and February 1, the first two days of the new year, are the peak periods, and the mobile Internet access traffic on that day is 589000 TB and 654000 TB respectively, with a year-on-year increase of 18.2% and 18.6%. At the same time, the substitution of mobile Internet services for calls and text messages has further emerged. The billing time of mobile phones nationwide during the seven-day Spring Festival holiday totaled 53.17 billion minutes, down 3% compared with the seven-day Spring Festival last year; The number of mobile text messages sent across the country was 20.75 billion, down 2.1% from the seven days of the Spring Festival last year, of which the number of mobile text messages sent on January 31 and February 1 was 3.87 billion and 2.95 billion respectively.
We believe that the data of the Ministry of industry and information technology shows that China’s traffic continues to grow, which will drive the infrastructure expansion of the communication industry, and the demand for data center and transmission network expansion is still strong. It is suggested to pay attention to the optical module related companies: Zhongji Innolight Co.Ltd(300308) , Suzhou Tfc Optical Communication Co.Ltd(300394) .
III. 5g + 8K technology brings the Olympic events close at hand. The Beijing Winter Olympics adopted 5g + 8K technology to broadcast the opening ceremony and the event, which is also the first large-scale application of 8K technology in the world. At the same time, AI, cloud computing, VR / AR, naked eye 3D and other cutting-edge technologies have also been fully applied. The enterprises that promote the application of these technologies jointly contribute to the strength of communication to build a Winter Olympic event with “empty brightness, romance, high scientific and technological content and modern sense”.
Complement each other, 5g promotes the development of 8K UHD video industry. 8K is the highest standard of current video display technology, also known as ultra-high definition video. Its definition is 4 times that of 4K and 16 times that of 1080p. It can bring a more real and shocking experience effect to the audience. It is the mainstream direction of display technology in the future. However, 8K video has strict bandwidth requirements, requiring at least 130mbps of transmission bandwidth. The peak transmission rate of 4G network can only reach 100Mbps. Therefore, only the experience rate based on 5g network can ensure the quality of video return. China has built and opened a total of 1.425 million 5g base stations, and built the world’s largest 5g network, covering all prefecture level cities, more than 98% of County cities and 80% of township towns. 5g provides the network capability of large bandwidth, large connection and low delay. At the same time, combined with the characteristics of MEC and network slicing, it brings new opportunities for the development of 8K, VR and other ultra-high definition video technologies. With the completion of the deployment of 5g network and the continuous evolution of UHD video industry, 5g will drive the leap and improvement of UHD video industry applications. We believe that with the completion of 5g network deployment, 5g downstream applications are about to burst, and VR / AR, ultra-high definition video, Internet of things and industrial Internet related industries are expected to burst. Suggested attention: Quectel Wireless Solutions Co.Ltd(603236) , Optowide Technologies Co.Ltd(688195) .
Industry highlights
\u3000\u30001. Huawei ranked first in PCT patent applications for five consecutive years
On February 10, 2022, the World Intellectual Property Organization (WIPO) released a report that in 2021, global innovative enterprises and individuals overcame the interference of covid-19 epidemic and promoted the organization’s global intellectual property services such as patents, trademarks and designs to a new record.
In 2021, 277500 international patent applications were submitted through the Patent Cooperation Treaty (PCT), a year-on-year increase of 0.9%, a record high. The number of patent applications submitted through the PCT treaty ranks the first in the international cooperation list, with a year-on-year increase of 90000, ranking the third in a row.
The countries with the largest number of PCT patent applications after China are the United States (59570 applications, + 1.9%), Japan (50260 applications, – 0.6%), South Korea (20678 applications, + 3.2%) and Germany (17322 applications, – 6.4%).
From the perspective of enterprises, a total of 13 Chinese enterprises ranked among the top 50 PCT international patent applicants. Among them, Huawei ranks first with 6952 applications, ranking first for five consecutive years, and the number of applications is far ahead. Qualcomm ranked second with 3931 applications.
Among other Chinese enterprises, oppo ranked sixth with 2208 applications; BOE ranked seventh with 1980 applications. Zte Corporation(000063) was promoted by 3 places, ranking 13th, with 1493 applications.
Ping An technology, vivo, Dajiang, Ruisheng acoustics, Wuhan Huaxing optoelectronics, Shenzhen Huaxing optoelectronics, Tencent, byte beating and Xiaomi also entered the top 50.
\u3000\u30002. Dell’Oro: global data center capital expenditure will reach $350 billion by 2026. According to the latest report released by Dell’Oro group, a market research company, global data center capital expenditure is expected to reach $350 billion by 2026. The company predicts that the data center expenditure of super large-scale cloud service providers will double in the next five years, thus driving market growth.
Other important contents of this five-year forecast report on data center IT capital expenditure include: by 2026, global data center capital expenditure is expected to increase by 10%; Driven by the adoption of the new server CPU platform and accelerated computing, the capital expenditure on servers is expected to exceed that in other areas; Edge computing is expected to account for 8% of total data center infrastructure spending by 2026.
\u3000\u30003. Lightcounting: in 2021, Chinese optical device manufacturers accounted for half of the country. Lightcounting pointed out that in 2021, Chinese optical device and module manufacturers reached a milestone: the sales revenue of China’s top ten suppliers exceeded that of western competitors. How did the market share of Chinese suppliers increase from 15% in 2010 to slightly more than 50% in 2021.
China’s telecom service providers’ stable investment in optical network infrastructure created a US $2 billion Chinese market for Chinese optical module suppliers in 2021. Wireless prequel and FTTx transceivers and Bosa accounted for a large part of the sales of optical devices deployed in China. With the completion of this round of 5g and 10g FTTx deployment, lightcounting expects that the optical modules used in the cloud data center and the network between them will dominate China’s optical demand.
Although Chinese chip suppliers have made significant progress, they still lag behind western competitors for 2-3 years in the development of high-speed (50g and above) components. China’s lack of supply of 200g, 400g and 800g optical devices may limit the deployment of these products in China in the next five years. In addition, the US sanctions against Huawei may also affect the deployment strategy of Chinese service providers. Since Huawei cannot obtain the latest ASIC manufacturing technology required for relevant DSP and other products, CSP may delay the deployment of 400g technology. In the past decade, China has completed a large number of upgrading projects, creating sufficient network bandwidth buffer for Chinese CSP to continue to deploy 100 / 200g optical systems in the next year or two. All the above factors have led to a decline in the forecast of China’s optical device demand in the next five years.
Recommended this week: 5g construction leader [ Zte Corporation(000063) ]; US sanctions upgrade domestic substitution acceleration and warming of super SIM card sales [ Unigroup Guoxin Microelectronics Co.Ltd(002049) ]; Benefiting from the rapid growth of intelligent controller industry [ Shenzhen Topband Co.Ltd(002139) ]; [ Fibocom Wireless Inc(300638) ] and [ Shenzhen Neoway Technology Co.Ltd(688159) ] of Internet of things module; Beidou industry solution leader [ Shanghai Huace Navigation Technology Ltd(300627) ]; Benefit from the explosion of energy storage and charging charges [ Longshine Technology Group Co.Ltd(300682) ].
Long term recommendation: 5g main equipment and infrastructure: Zte Corporation(000063) ; Optical communication: Suzhou Tfc Optical Communication Co.Ltd(300394) , Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) , Accelink Technologies Co.Ltd(002281) , Broadex Technologies Co.Ltd(300548) ; Advanced Fiber Resources (Zhuhai) Ltd(300620) ； Optowide Technologies Co.Ltd(688195) , Juguang technology; Radio frequency: Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) ; Benefit flow explosion: Fujian Star-Net Communication Co.Ltd(002396) , New Guomai Digital Culture Co.Ltd(600640) , Wangsu Science & Technology Co.Ltd(300017) ; Internet of things segment: Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Meig Smart Technology Co.Ltd(002881) , Hanwei Electronics Group Corporation(300007) , Queclink Wireless Solutions Co.Ltd(300590) . IDC direction: Beijing Sinnet Technology Co.Ltd(300383) , Shanghai Athub Co.Ltd(603881) , Shanghai Baosight Software Co.Ltd(600845) , Guangdong Aofei Data Technology Co.Ltd(300738) ; 5g messages: Montnets Cloud Technology Group Co.Ltd(002123) , Zjbc Information Technology Co.Ltd(000889) , Wutong Holding Group Co.Ltd(300292) ; Industrial Internet: Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ; Intelligent controller: Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Topband Co.Ltd(002139) . Energy storage is related to new energy: Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) , Kehua Data Co.Ltd(002335) , Longshine Technology Group Co.Ltd(300682) .
Risk tips
(1) systemic risk caused by the unexpected decline of the market;
(2) focus on the uncertainty risk of promoting relevant matters of the company.
