This week, the CSI 300 rose by 1.08% and the gem rose by 2.93%, of which the communication sector rose by 2.37%, and the price performance of the sector was stronger than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 1.81%; The overall turnover rate of the Shanghai and Shenzhen sectors was 300.0% in the same period. In terms of individual stocks in the communication sector, the top five companies that rose this week were: Gci Science & Technology Co.Ltd(002544) (13.84%), Wenzhou Yihua Connector Co.Ltd(002897) (12.94%), Jiangsu Zhongtian Technology Co.Ltd(600522) (12.19%), Keller Technology (10.76%) and Wanma Technology Co.Ltd(300698) (10.66%); The top five companies with declines were: Suna Co.Ltd(002417) (- 19.49%), Invengo Information Technology Co.Ltd(002161) (- 12.52%), Super Telecom Co.Ltd(603322) (- 8.44%), Shenzhen Roadrover Technology Co.Ltd(002813) (- 8.30%) and Guangdong Tecsun Science & Technology Co.Ltd(002908) (- 6.79%).
“Counting from the east to the west” was officially launched, and China’s data center is developing towards intensification and scale. Computing power is the core productivity of digital economy, and its demand has continued to increase in recent years. According to the official website of the national development and Reform Commission, by February 2022, the scale of China’s data center has reached 5 million standard racks and the computing power has reached 130eflops. With the development of digital economy, it is expected to maintain a growth rate of more than 20% in the future. “Counting from the east to the west” has been proposed since May 24, 2021. Since then, it has been repeatedly mentioned in a number of documents and officially approved by four ministries and commissions on February 17. It will start the construction of national computing network hub nodes in 8 places, including Beijing Tianjin Hebei, Yangtze River Delta, Guangdong Hong Kong Macao Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and plans 10 national data center clusters such as Zhangjiakou. Through the layout of the national integrated data center and breaking the current situation of uneven regional development, China’s computing power scale will be increased in an orderly manner, and the use efficiency will be improved. According to the planning requirements, the average shelf rate in the data center cluster is no less than 65%, reducing the waste of resources, realizing the large-scale and intensive development of China’s computing power, and creating a solid digital base for the development of digital economy.
Optimize the allocation of regional resources and promote the supply side reform of data center. “Counting from the east to the west” is a supply side reform of the data center industry, which can effectively optimize the allocation of regional resources. Most of China’s data centers are located in the eastern region. Due to the increasing shortage of land, energy and other resources, it is difficult to sustain the large-scale development of data centers in the eastern region. The western region is rich in resources and has obvious cost advantages. It has the potential to develop data centers and undertake the needs of the eastern region. “Counting from the east to the west” can orderly guide the computing power demand in the east to the west, solve the imbalance of computing power resources and demand at each node, and promote the high-quality development of China’s data center. In the future, businesses with low network requirements such as background processing, offline analysis, storage and backup will be gradually transferred to the West. The eastern region gives priority to the processing of businesses with high network requirements such as industrial Internet, financial securities, disaster early warning, telemedicine, video call and artificial intelligence reasoning. The data center has a long industrial chain, wide coverage and strong driving effect. The construction of computing hub and data center cluster will effectively drive the upstream and downstream investment of the industry. We suggest paying attention to the third-party IDC companies, operators and upstream equipment industry chain, including optical modules, optical devices, equipment manufacturers, etc.
The data center is developing green, so it is suggested to pay attention to HVAC equipment. China’s data center continues to develop in an efficient, clean, intensive and circular green direction. “Counting from the east to the west” declined, increased the layout of the data center in the west, significantly increased the proportion of green energy use, and absorbed the green energy in the West nearby. At the same time, through technological innovation, large for small, low-carbon development and other measures, we continued to optimize the energy use efficiency of the data center and gradually eliminate backward production capacity. According to the requirements of the national development and Reform Commission, the pue of Gui’an, Qingyang, Helingeer and Zhongwei is lower than 1.2, and that of the Yangtze River Delta, Wuhu, Zhangjiakou, Tianfu, Chongqing and Shaoguan is lower than 1.25. The utilization rate of renewable energy should be significantly improved. According to the three-year action plan for the development of new data centers (2021-2023) released in 2021, the pue of new large and above data centers is required to be reduced to less than 1.35 by the end of 2021. By the end of 2023, the pue of new large-scale and above data centers in China will be reduced to less than 1.3, and the pue in severe cold and cold areas will strive to be reduced to less than 1.25. This time, the pue requirements for hub node data centers will continue to improve, and it is recommended to pay attention to the HVAC equipment of data centers.
Investment suggestions: it is recommended to pay attention to data centers: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) , Shanghaichengdiconstructioncorporationltd(603887) ; Equipment manufacturer: Unisplendour Corporation Limited(000938) (Xinhua III), Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) ; Optical devices and optical modules: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; Telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; IDC HVAC equipment: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) , Yimikang Tech.Group.Co.Ltd(300249) etc; Internet of things and Internet of vehicles: Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Meig Smart Technology Co.Ltd(002881) , Wingtech Technology Co.Ltd(600745) , Wenzhou Yihua Connector Co.Ltd(002897) , Foryou Corporation(002906) , Queclink Wireless Solutions Co.Ltd(300590) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) , Streamax Technology Co.Ltd(002970) etc; On board connector: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) ; Intelligent controller: Shenzhen Topband Co.Ltd(002139) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Longood Intelligent Electric Co.Ltd(300543) , Shenzhen Bestek Technology Co.Ltd(300822) ; Military communications and satellite applications: Jushri Technologies Inc(300762) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Shanghai Huace Navigation Technology Ltd(300627) , Chengdu Corpro Technology Co.Ltd(300101) , Guangzhou Haige Communications Group Incorporated Company(002465) , China Satellite Communications Co.Ltd(601698) etc.
Risk warning events: 5g investment is less than expected, market competition intensifies, overseas trade disputes, market systemic risks, etc
