This week, the CSI 300 rose 3.14%, and the gem fell 0.34%, of which the communication sector rose 0.02%, and the price performance of the sector was weaker than the market; The turnover rate of 125 constituent stocks of the communication (CITIC) index this week was 1.76%; the turnover rate of 300 constituent stocks in Shanghai and Shenzhen in the same period was 0.69%, and the overall activity of the sector was stronger than that of the market. In terms of individual stocks in the communication sector, the top five gainers this week were: Avit.Ltd(300264) (16.04%), Hengxin Shambala Culture Co.Ltd(300081) (13.46%), Zjbc Information Technology Co.Ltd(000889) (13.17%), Yealink Network Technology Co.Ltd(300628) (12.12%), Wenzhou Yihua Connector Co.Ltd(002897) (9.24%); the top five companies with declines are: Tongding Interconnection Information Co.Ltd(002491) (- 15.01%), Advanced Fiber Resources (Zhuhai) Ltd(300620) (- 14.81%), Jiangsu Etern Company Limited(600105) (- 12.17%), Datang Telecom (- 10.75%) and Suzhou Tfc Optical Communication Co.Ltd(300394) (- 10.43%).
In the third quarter, the revenue of cellular Internet of things module exceeded US $1.5 billion, and the market share of module end was concentrated to Chinese top manufacturers. According to counter point data, in the third quarter of 2021, benefiting from the huge growth of Nb IOT and 4gcat1 modules, the global shipment of cellular Internet of things modules increased by 70% year-on-year, of which NB IOT contributed more than one third of the cellular Internet of things module market, and the shipment of 5g modules increased by 700% year-on-year. It is expected to maintain a high growth rate in the future. The overall revenue of cellular Internet of things module exceeded the $1.5 billion mark, and ASP decreased by 3%. In terms of pattern, Chinese manufacturers continued their strong performance at the module end. The top five were mobile yuan, Fibocom Wireless Inc(300638) , China Mobile, Sunsea Aiot Technology Co.Ltd(002313) and Meig Smart Technology Co.Ltd(002881) , accounting for 31.6% / 9.6% / 6.2% / 6.1% / 5.4%, of which the shipment of Quectel Wireless Solutions Co.Ltd(603236) cellular Internet of things modules increased by nearly 80% year-on-year. Fibocom Wireless Inc(300638) benefiting from the strong demand of Nb IOT module, the shipment of cellular Internet of things module increased by 84% year-on-year. China Mobile’s cellular Internet of things module shipments tripled year-on-year. On the chip side, Qualcomm continued to lead with a dominant share of 37.2%, Ziguang zhanrui’s share increased to 26.8%, and Hisilicon’s share was 13.7%. Qualcomm is a leader in 4gcat4, 4gcatothers, 5g, lpwa dual-mode, lte-m and 3G chips, and Ziguang zhanrui surpasses 4gcat1
The restructuring strategy of Ziguang group is determined, which is expected to enable the company’s long-term development from the industrial end. On December 10, Unisplendour Corporation Limited(000938) and Unigroup Guoxin Microelectronics Co.Ltd(002049) announced that after several rounds of selection of reorganization investment schemes, the consortium composed of Beijing Zhilu asset management and Beijing Jianguang asset management will become the strategic investors for the substantive merger and reorganization of seven enterprises such as Ziguang group. Ziguang group has a clear equity structure, in which Tsinghua Holdings Co., Ltd. holds 51% and Beijing Jiankun Investment Group Co., Ltd. holds 49%. At present, it holds Unisplendour Corporation Limited(000938) 46.45% and Unigroup Guoxin Microelectronics Co.Ltd(002049) 32.39% respectively. Since Ziguang group was applied for bankruptcy and reorganization on July 10, 2021, as of November 19, the confirmed debt scale of Ziguang group was about 142.6 billion yuan. After the approval of the Ministry of education, Sichuan SASAC and other relevant institutions, Tsinghua University will transfer 100% of the equity of Tsinghua holdings to Sichuan Energy Investment Group Co., Ltd. through free transfer. Both Beijing Zhilu Asset Management Co., Ltd. and Beijing Jianguang Asset Management Co., Ltd. have state-owned assets and rich experience in industrial investment in semiconductor and other fields. In the future, they are expected to empower the major business segments of Ziguang group, Unisplendour Corporation Limited(000938) and Unigroup Guoxin Microelectronics Co.Ltd(002049) are expected to benefit.
The dual carbon policy promotes the healthy development of the industry, and the supply side of the data center is expected to be integrated. On December 8, the national development and Reform Commission and other departments jointly issued the implementation plan for implementing the goal of carbon peaking and carbon neutralization and promoting the green and high-quality development of new infrastructure such as data center and 5g. The plan proposes to adhere to scientific layout, intensive development and equal emphasis on construction and use in the process of moderately advanced development of new infrastructure such as data center and 5g, so as to realize low-carbon transformation and green and low-carbon development of the whole industrial chain. The plan puts forward the goal: by 2025, the data center and 5g will basically form a green and intensive integrated operation pattern, the utilization rate of the western data center will be increased from 30% to 50%, and the supply and demand of computing power in the East and West will be more balanced. The average power utilization efficiency of newly-built large and super large data centers in China has been reduced to less than 1.3, and the national hub nodes have been further reduced to less than 1.25. Gradually carry out energy-saving and carbon reduction transformation for data centers with power utilization efficiency of more than 1.5. Under the continuous promotion of the dual carbon policy, the data center will develop in the direction of green and low carbon, the backward production capacity will be phased out, and the supply side is expected to be further integrated, which is conducive to the long-term healthy and orderly development of the industry. In addition, efficient and environmentally friendly temperature control technology can effectively reduce the pue value of the data center, which is expected to accelerate the penetration in the data center and increase the proportion of temperature control expenditure in the construction of the data center.
Investment suggestions: focus on the Internet of things and the 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) ; Data center: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) etc; 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; Equipment manufacturers: Unisplendour Corporation Limited(000938) (Xinhua III), Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) ; telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; on-board connectors: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) ; intelligent controllers: 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) ; optical devices and optical modules: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; military communications and satellite applications: Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , 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
