Important trends in the industry this week:
Ministry of industry and information technology: the growth rate of Internet access traffic during the Spring Festival holiday has exceeded 20% for three consecutive years (Communication World)
The Spring Festival of the year of the tiger 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, 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.
Lightcounting: in 2021, Chinese optical device manufacturers accounted for half of the country (c114 communication network). Recently, lightcounting, a market research organization in the optical communication industry, released the latest market report. The report 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. The figure below illustrates how the market share of Chinese suppliers has increased from 15% in 2010 to just over 50% in 2021.
Investment view this week:
Recently, due to market adjustment, the long-term allocation value of Listed Companies in the communication field has been highlighted. Looking forward to 2022, focus on the high boom track and the low / undervalued value + reversal logic target. Recently, it has entered the stage of intensive disclosure of performance forecast, focusing on the higher than expected targets in the annual report / first quarter report and the high-quality targets 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.
