Key investment points
Strategic view of this week: 1. High quality development of data industry and continuous stimulation of data value: Shanghai data exchange was inaugurated on November 25. During the “14th five year plan” period, China’s big data industry is expected to maintain a high-speed development trend. 2. 5g application “set sail” to accelerate the digital transformation of the industry: as one of the most important platform technologies for industrial digitization, 5g is integrated with cloud computing, artificial intelligence, big data and other technologies to promote the development of intelligent industry. 2021 China United Network Communications Limited(600050) Global Partner Conference released “5g industry private network product system 2.0” and “5g application solutions for 20 industries”, and launched the industry 5g ecological open platform. 3. Operators add code to the cosmic infrastructure, and the growth of traffic and data transmission demand drives the large volume of optical modules, IDC and servers: the central economic work conference proposed to “moderately advance the infrastructure construction”, and the infrastructure investment is expected to speed up. The three operators accelerated the layout of 5g technology and seized the first opportunity of yuancosmic track. The main equipment manufacturers deeply participated in 5g commercial construction and enabled digital intelligent transformation. The development of 5g applications represented by metauniverse is expected to drive the rapid growth of traffic and data transmission demand, so as to drive the large volume of optical modules, IDC, servers, etc.
Industry Outlook: insecworld world information security conference (December 14, 2021-december 15, 2021)
Key recommendations (covered): Meig Smart Technology Co.Ltd(002881) , Beijing Tricolor Technology Co.Ltd(603516) , Zte Corporation(000063) , China Telecom Corporation Limited(601728) , Shenzhen Fastprint Circuit Tech Co.Ltd(002436) , 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) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) , Hytera Communications Corporation Limited(002583) , Thunder Software Technology Co.Ltd(300496) , 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 module: 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) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) ; 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) .
Suggestions for attention (not covered): big data industry: Hcr Co.Ltd(688500) , Merit Interactive Co.Ltd(300766) , Bonree Data Technology Co.Ltd(688229) , Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ; operator: China Mobile; server / router / switch: Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Inspur Electronic Information Industry Co.Ltd(000977) ; energy Informatization: Beijing Forever Technology Co.Ltd(300365) ; new energy supporting: Shenzhen Honor Electronic Co.Ltd(300870) , Shenzhen Cotran New Material Co.Ltd(300731) , Shenzhen Kexin Communication Technologies Co.Ltd(300565) ; optical module: Eoptolink Technology Inc.Ltd(300502) , Cig Shanghai Co.Ltd(603083) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Broadex Technologies Co.Ltd(300548) ; IC carrier / PCB: Shennan Circuits Co.Ltd(002916) Victory Giant Technology (Huizhou)Co.Ltd(300476) 、 Suntak Technology Co.Ltd(002815) ； Optical fiber cable: Hengtong Optic-Electric Co.Ltd(600487) , Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) ; Internet of things / Internet of vehicles: Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Topband Co.Ltd(002139) ; IDC: Beijing Highlander Digital Technology Co.Ltd(300065) , Shanghai Baosight Software Co.Ltd(600845) , Hang Zhou Iron & Steel Co.Ltd(600126) , Jiangsu Shagang Co.Ltd(002075) , chengdi shares, Leon Technology Co.Ltd(300603) , Century Internet and Wanguo data; Beidou: Chengdu Corpro Technology Co.Ltd(300101) , Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) , Piesat Information Technology Co.Ltd(688066) , Shanghai Huace Navigation Technology Ltd(300627) ; Carbon neutralization: Jiangsu Zhongtian Technology Co.Ltd(600522) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ; Related to urban digital transformation: Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Zhejiang Dahua Technology Co.Ltd(002236) , Vanjee Technology Co.Ltd(300552) , Pci Technology Group Co.Ltd(600728) , Vantone Neo Development Group Co.Ltd(600246) , Anhui Sinonet & Xinlong Science & Technology Co.Ltd(002298) ; LEO satellites: China Spacesat Co.Ltd(600118) , China Satellite Communications Co.Ltd(601698) , Guangzhou Haige Communications Group Incorporated Company(002465) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Hwa Create Corporation(300045) , Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) , Gci Science & Technology Co.Ltd(002544) , Beijing Ctrowell Technology Corporation Limited(300455) , Changshu Tianyin Electromechanical Co.Ltd(300342) , Yaguang Technology Group Company Limited(300123) , Shanghai Hugong Electric Group Co.Ltd(603131) , Xingyu Wangda; HD Video: Wuhan Xingtu Xinke Electronics Co.Ltd(688081) ; Cloud computing / edge computing: Wangsu Science & Technology Co.Ltd(300017) ; Quantum information industry: Quantumctek Co.Ltd(688027) ; Small base stations: Jushri Technologies Inc(300762) , Genew Technologies Co.Ltd(688418) ; Iron tower: China iron tower; National first network: Beijing Gehua Catv Network Co.Ltd(600037) , Shaanxi Broadcast & Tv Network Intermediary(Group)Co.Ltd(600831) ; Industrial Internet: Foxconn Industrial Internet Co.Ltd(601138) ; Big data: Merit Interactive Co.Ltd(300766) , Huichen information; Online education: Dingli Corp.Ltd(300050) , lischen; Antenna RF: Tongyu Communication Inc(002792) , Huizhou Speed Wireless Technology Co.Ltd(300322) , Suzhou Shijia Science & Technology Inc(002796) ; Heat dissipation: Jones Tech Plc(300684) ; UWB： Haoyun Technologies Co.Ltd(300448) 。
Market review: this week (from December 6, 2021 to December 10, 2021, the same below), the communication (Shenwan) index fell 0.41%; the Shanghai and Shenzhen 300 index rose 3.14%, and the industry underperformed the market by 3.55pp. The recent performance of Soochow communication preferred index: this week fell 3.72%, up 48.93% year to date, outperforming the communication Shenwan index by 48.82pp.
Risk warning: the operator’s income is lower than expected; Policy support is less than expected; The progress of 5g industry is less than expected; 5g network construction progress is less than expected.
