Industry news tracking
"Counting from the east to the west" was officially launched, and major new infrastructure projects for the digital economy were accelerated. A number of policy documents continue to pay attention to the new infrastructure, and the official and comprehensive launch of the "counting from the east to the west" project also marks the continuous acceleration of the implementation of China's new infrastructure. It is suggested to pay attention to the three major operators [China Mobile], [ China Telecom Corporation Limited(601728) ] and [ China United Network Communications Limited(600050) ]; Internet of things module manufacturers [ Quectel Wireless Solutions Co.Ltd(603236) ], [ Fibocom Wireless Inc(300638) ]; IOT chip [ Rockchip Electronics Co.Ltd(603893) ], etc; Industrial Internet, such as [ Beijing Inhand Networks Technology Co.Ltd(688080) ], [ 3Onedata Co.Ltd(688618) ]; Beidou industrial chain, such as [ Shanghai Huace Navigation Technology Ltd(300627) ]; Optical devices and optical modules, such as [ Suzhou Tfc Optical Communication Co.Ltd(300394) ];
Optical fiber and optical cable, such as [ Jiangsu Zhongtian Technology Co.Ltd(600522) ]; ICT equipment manufacturers such as [ Unisplendour Corporation Limited(000938) ] and [ Inspur Electronic Information Industry Co.Ltd(000977) ]; IDC, such as [ Guangdong Aofei Data Technology Co.Ltd(300738) ]; "Communication + energy" [ Guangdong Shenling Environmental Systems Co.Ltd(301018) ], etc.
Shanghai issued the implementation opinions on promoting the high-quality development of spatial information industry in Shanghai. The opinions focuses on the fields of communication, guidance and remote control, and is expected to form a policy joint force with other policy plans. On the one hand, it is expected to accelerate the landing application of Beidou in the fields of Surveying and mapping, deformation monitoring and intelligent driving. On the other hand, it is expected to guide the orderly development of commercial aerospace and reduce the costs of Satellite Internet manufacturing and launch. It is suggested to pay attention to Beidou industrial chain, such as [ Shanghai Huace Navigation Technology Ltd(300627) ].
Industry key data tracking
1) operator data: 5g penetration continued to grow in 2021. As of December 2021, the total number of mobile services of the three major operators was 1.646 billion, a net increase of 374000 compared with the end of November. Among them, the total number of 5g users reached 730 million, a net increase of 26.85 million compared with the end of November, and the penetration rate reached 44.3%; 2) 5g base stations: as of December 21, the total number of 5g base stations has reached 1425000; 3) Cloud computing and chip manufacturers: 21q3, bat capital expenditure totaled 25.663 billion yuan (year-on-year + 8%, month on month + 17%); 21q4, the capital expenditure of the three major overseas cloud manufacturers and meta (Facebook) totaled US $36.553 billion (year-on-year + 26%, month on month + 11.8%). Xinhua's revenue in December was NT $371 million (year-on-year + 32.1%, month on month + 21.6%); Intel DCG 21q4's revenue increased by 20% year-on-year to US $7.3 billion, with a growth rate of nearly six quarters; Amd computing and graphics 21q4 achieved a revenue of US $2.6 billion (year-on-year + 32%, month on month 8%).
Market Review
In the past two weeks, the communication (Shenwan) index rose by 4.95% and the CSI 300 index rose by 0.37%. The performance of the sector was stronger than that of the big market, with a relative return of 4.58%, ranking sixth in the Shenwan industry. There are 126 companies in the communication stock pool we built, with an average increase or decrease of 5.42% this week. In various sub sectors, IDC, optical devices, optical modules, private network and Beidou led the rise, rising 9.42%, 6.28%, 5.73% and 5.59% respectively.
Investment suggestions:
Grasp the callback opportunity and look for highly flexible tracks: first, the policy overweight direction has more catalysts, such as the Internet of things, Beidou and industrial Internet. Specifically, there are Internet of things modules (focusing on Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ), IOT chip ( Rockchip Electronics Co.Ltd(603893) ), industrial Internet gateway ( Beijing Inhand Networks Technology Co.Ltd(688080) ), Beidou application terminal ( Shanghai Huace Navigation Technology Ltd(300627) ). Second, the track combined with new energy and intelligent vehicles has high certainty and high valuation flexibility. Focus on "communication + energy" ( Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) ) and "communication + automobile" ( Suzhou Recodeal Interconnect System Co.Ltd(688800) ). In February, Quectel Wireless Solutions Co.Ltd(603236) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Suzhou Recodeal Interconnect System Co.Ltd(688800) were recommended.
Risk tips
The global epidemic intensifies risks, 5g investment and construction is not as expected, Sino US trade frictions and other external environmental changes.
