Industry core view:
The last trading week was the seventh trading week of A-Shares in 2022. The CSI 300 index fell 1.67%, and 12 of the 31 industries in Shenwan class rose and 19 fell. The overall trend of the communication industry was stronger than the market last week, rising by 0.8%, ranking ninth and second in the TMT industry. In February 22nd, the CPC Central Committee and the State Council made the recommendations on the key work of Promoting Rural Revitalization in 2022, that is, the No. 1 central document issued in 2022. No. 1 central document pointed out that the application level of agricultural machinery research and development should be improved, the weaknesses of short board should be combed comprehensively, the subsidy policy for agricultural machinery purchase and application should be implemented, the subsidy payment method should be optimized, and the integration of agricultural research and development, manufacturing, extension and application should be carried out. At the same time, we should effectively prevent and respond to major agricultural disasters, strengthen the prevention and control management of alien invasive species, and do a good job in general survey and monitoring, entry quarantine and China’s prevention and control. For those that have been introduced and caused serious harm, we should “one policy” for accurate treatment and effective elimination. Strengthen research on the impact of medium – and long-term climate change on agriculture. Vigorously promote the construction of digital village, promote the development of Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) and promote the integrated application of information technology and agricultural machinery and agronomy. At the same time, the meteorological and water conservancy departments have also issued relevant policies to further standardize the general survey and monitoring of China’s meteorological environment and water conservancy. It is suggested to pay attention to the investment opportunities of Beidou, remote sensing and other related industrial chains
Key investment points:
One week’s industrial news: (1) transcript of the first month of the year of the tiger of the three operators: China Mobile is firmly in the “C position”; (2) IPv6 “+” speed run | “IPv6 +” opens the door to the innovation of the next generation Internet; (3) Dell’Oro report: in 2021, the global ran market grew by more than 10%, and Huawei maintained a leading share; (4) Centralized purchase of 2.6GHz radio and television dedicated core network equipment of China Mobile: Huawei and ZTE divide up; (5) China Unicom 10gpon centralized procurement: ZTE and Huawei won the bid, with an amount of more than 4.5 billion; (6) Over 10 billion orders China Telecom Corporation Limited(601728) server centralized purchase and landing: Zte Corporation(000063) and Xinhua three full standard package are shortlisted; (7) “1 arrow 22 stars” mission completed! On orbit application of easy to move Aerospace Electric Propulsion series products; (8) Promote the application capability of Fengyun meteorological satellite and improve the “mission statement” of China Meteorological Administration in 2022.
With the gradual advancement of 5g construction and the continuous high growth of cloud computing construction scale, the fundamentals of the communication industry may continue to improve in 2022. In terms of 5g construction, with the implementation of the “14th five year plan” for the development of information and communication industry, the goal of 5g construction in the future is clear. In the next three to five years, 5g construction will also maintain a stable pace of construction investment. However, with the gradual progress of construction, the downstream supporting applications will gradually mature, thus driving the relevant construction of 5g again.
In the future when the structural market in the communication industry continues to evolve, we suggest paying attention to four investment tracks in the communication industry: (1) operators & equipment manufacturers: 5g construction continues to promote, and the prosperity of traditional communication business is rising. With the expansion of 5g construction, the performance of communication construction, operation and maintenance industrial chain has increased significantly, The cloud network construction of data center and 5g2b business also opens up new growth space for operators & communication equipment manufacturers. (2) Optical module: with a new round of demand growth and the promotion of optical module technology, the industry is expected to usher in a new round of double clicking in 2022. It is suggested to pay attention to the leading optical module enterprises on the digital communication side. (3) Internet of things module: in the next two years, the Internet of vehicles module will still be one of the main directions of the future market growth of the Internet of things module. It is suggested to pay attention to the leading enterprises with deep layout in the Internet of vehicles industrial chain. (4) Temperature control: it is suggested to pay attention to some leading temperature control enterprises that have the ability to transplant the original data center liquid cooling technology to the energy storage system.
Risk factors: increased trade friction, China’s 5g construction does not meet expectations, the slowdown of global cloud computing construction, and the price fluctuation of upstream raw materials.
