Important trends in the industry this week:
The results of China Unicom’s 10g PON centralized procurement were publicized, and the Gigabit broadband of “digital economy” continued to be vigorously promoted China United Network Communications Limited(600050) recently officially announced the results of 10gpon product centralized procurement. ZTE and Huawei were shortlisted, with an amount of more than 4.5 billion yuan. China has actively promoted the construction of “double Gigabit”, and the three major operators have successively purchased 10g PON equipment. According to the results of previous bidding, the industrial competition pattern is concentrated. ZTE, Huawei, Fiberhome and Nokia bell have leading competitiveness in China and will significantly benefit from the rapid promotion of Gigabit Network Construction. In addition, the links of Gigabit broadband industrial chain will also continue to benefit.
EPC bid winning publicity of Three Gorges 3000MW offshore wind farm project has increased the value of submarine cables
There are five EPC bid sections of Yangzhou and Haizhou wind power plant (6000mw) including five EPC bid sections of Yangzhou and Haizhou wind power plant (6000mw) EPC project. The quotation of the first candidate for pre winning the bid for a total of 5 packages of EPC (excluding outgoing cable) and outgoing cable EPC, with a total amount of 42.6 billion yuan. At the same time, high voltage cables (330kV + 66kV for Qingzhou VI and 500kV flexible and direct + 66kV for Qingzhou V and VII) are required for Qingzhou V, VI and VII projects, and the value proportion of pure submarine cables has increased significantly. In addition, the high-voltage cable market pattern / gross profit is better. The participants are basically the top three, with high barriers and thresholds.
Investment view this week:
In the short term, focus on the subject of high growth & low value & policy benefits (digital economy, East West calculation, etc.) in the first quarter report. Looking forward to the whole year, focus on the high boom track and the low / undervalued value + reversal logic target. Key focus: applications in subdivided fields such as communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and industrial Internet have entered the stage of accelerated development, and the growth logic is clear. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. It is suggested to pay attention to: Internet of things / smart car, optical fiber cable / submarine cable, military communication, main equipment, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and optical cable is open), Hengtong Optic-Electric Co.Ltd(600487) (Ocean + optical fiber and optical cable dual drive), Jiangsu Etern Company Limited(600105) (optical communication recovers, and the automobile harness opens the incremental space). It is suggested to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise simultaneously);
3. Light module & light device: light module & light device: 3 Zuming Bean Products Co.Ltd(003030) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / networking of vehicles: what’s to be: to highlight: what’s to recommend to highlight: Skyworth Digital Co.Ltd(000810) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Cubic Sensor And Instrument Co.Ltd(688665) (mechanical combined coverage); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Shenzhen Neoway Technology Co.Ltd(688159) , Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendations: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix), Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and cable has started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: a key recommendation from IDC: a key recommendation from the IDC: to focus on: Hongda Xingye Co.Ltd(002002) 335\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ etc;
IV. military communication & Beidou: communication is a serious weakness in the field of national defense informatization, and the penetration rate of ultrashort wave and area width can be improved. It is suggested to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ;
V. digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) etc.
Risk warning: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the speed of downstream application recommendation is lower than expected, and the risk of trade war is uncertain.
