Core view
At the end of the fourth quarter of 2021, the market value of the shares held by the communication section fund showed an upward trend, and the investment value gradually appeared. By the end of the fourth quarter of 2021, the net asset value of public funds had reached 24.9 trillion yuan, a month on month increase of 6.24% over the end of the third quarter. At the end of the fourth quarter of 2021, the stock market value of shenwanyi communication sector fund with heavy positions was 38.958 billion yuan, and the month on month growth rate of position market value reached 33.59%. The communication industry accounted for 1.05% of the market value of the fund’s heavy holdings, with a month on month increase of 0.22pct. The communication sector rose steadily in the fourth quarter of 2021, and the investment value gradually appeared.
The fund positions in the Internet of things / Internet of vehicles sector increased steadily, and the demand was further released. The Internet of things / Internet of vehicles sector maintained a high outlook. At the end of the fourth quarter of 2021, the total market value of the fund holdings of the Internet of things / Internet of vehicles and modules sector was 3.680 billion yuan, an increase of 42.08% month on month compared with the total market value of the fund holdings of 2.590 billion yuan at the end of the third quarter. Among them, Quectel Wireless Solutions Co.Ltd(603236) has the highest total market value of 2.501 billion yuan, with a total shareholding of 12.2674 million shares, accounting for 12.45% of the circulating shares.
The rapid growth of traffic and data transmission demand has driven the massive volume of infrastructure such as optical modules. It is suggested to continue to pay attention to high-quality targets in the industry. At the end of the fourth quarter of 2021, the total market value of fund positions in the optical module sector was 2.237 billion yuan, an increase of 107.67% month on month compared with 981 million yuan in the third quarter. We believe that with the gradual maturity of 5g applications represented by metauniverse, the demand for traffic and data transmission will usher in rapid growth, driving the large-scale volume of infrastructure such as optical modules, IDC and servers, which is expected to drive the performance growth of Companies in the industry. It is suggested to continue to pay attention to high-quality targets in the industry.
Key recommendations (covered): Meig Smart Technology Co.Ltd(002881) , Beijing Tricolor Technology Co.Ltd(603516) , Zte Corporation(000063) , China Telecom Corporation Limited(601728) , Longshine Technology Group Co.Ltd(300682) , Beijing Highlander Digital Technology Co.Ltd(300065) , Willfar Information Technology Co.Ltd(688100) , Shenzhen Envicool Technology Co.Ltd(002837) , Thunder Software Technology Co.Ltd(300496) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) , Shenzhen Fastprint Circuit Tech Co.Ltd(002436) , Hytera Communications Corporation Limited(002583) , China United Network Communications Limited(600050) .
Recommended (covered): Operator: China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; 5g main equipment: Zte Corporation(000063) , Fiberhome Telecommunication Technologies Co.Ltd(600498) , Hytera Communications Corporation Limited(002583) ; Energy Informatization: Willfar Information Technology Co.Ltd(688100) ; New energy supporting: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) ; Optical modules: Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) , Zhongji Innolight Co.Ltd(300308) , Accelink Technologies Co.Ltd(002281) ; PCB： Shenzhen Fastprint Circuit Tech Co.Ltd(002436) ； Optical fiber cable: Fiberhome Telecommunication Technologies Co.Ltd(600498) ; Internet of things / Internet of vehicles: Thunder Software Technology Co.Ltd(300496) ; IDC： Guangdong Aofei Data Technology Co.Ltd(300738) 、 Beijing Sinnet Technology Co.Ltd(300383) ； Network visualization: Shenzhen Sinovatio Technology Co.Ltd(002912) ; 5g industry private network: Hytera Communications Corporation Limited(002583) ; Cloud computing / edge computing: Ucloud Technology Co.Ltd(688158) ; Related to urban digital transformation: Iflytek Co.Ltd(002230) .
Risk warning: deterioration of macroeconomic environment; Policy support is less than expected; The progress of 5g industry and network construction is less than expected
