This week, the conflict between Russia and Ukraine became the global focus, driving the stabilization and recovery of military related sectors. The military communications sector, as a traditional blue chip sector in the communications industry, currently Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Guangzhou Haige Communications Group Incorporated Company(002465) and other representative companies have reached the low valuation range after the industry adjustment, which is expected to usher in better opportunities for valuation repair with the recovery of sentiment in the sector caused by the conflict between Russia and Ukraine and the release of subsequent performance. Meanwhile, on January 28, the Ministry of industry and information technology issued several opinions on the promotion and application of Beidou in the field of mass consumption, pointing out the need to speed up the exploration of Beidou’s commercial application. We believe that with the continuous promotion of commercial exploration and the development of Southeast Asian market, Beidou’s market is expected to usher in considerable development. It is suggested to pay attention to Shanghai Huace Navigation Technology Ltd(300627) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Guangzhou Haige Communications Group Incorporated Company(002465) , Shenzhen H&T Intelligent Control Co.Ltd(002402) Beijing Bdstar Navigation Co.Ltd(002151) and other high-quality companies in the industrial chain.
Core recommendations:
\u3000\u30001. High quality leading companies on the flow bearing side: Eoptolink Technology Inc.Ltd(300502) Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) Suzhou Tfc Optical Communication Co.Ltd(300394)
\u3000\u30002. High quality companies with steady growth performance: Meig Smart Technology Co.Ltd(002881) Meig Smart Technology Co.Ltd(002881) , Fibocom Wireless Inc(300638) Fibocom Wireless Inc(300638) , Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628) Russia Ukraine conflict continues, pay attention to military communication and Beidou navigation. Since the beginning of the year, with the continuous decline of the high valuation sector, individual stocks in the military industry sector have also ushered in continuous adjustment. Recently, with the continuous escalation of the conflict between Russia and Ukraine, the military industry sector has continued to warm up and bottom up. We believe that in addition to the conflict between Russia and Ukraine, the valuation of military communication related stocks in the current position has been relatively reasonable. With the upgrading of China’s military equipment communication system and the accelerated penetration of military informatization, it is expected to usher in the valuation repair. Meanwhile, on January 28, the Ministry of industry and information technology issued several opinions on the promotion and application of Beidou in the field of mass consumption, pointing out that it is necessary to speed up the exploration of Beidou’s commercial application. We believe that with the continuous promotion of commercial exploration and the development of Southeast Asian market, Beidou’s market is expected to usher in considerable development. It is suggested to pay attention to Shanghai Huace Navigation Technology Ltd(300627) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Guangzhou Haige Communications Group Incorporated Company(002465) , Shenzhen H&T Intelligent Control Co.Ltd(002402) Beijing Bdstar Navigation Co.Ltd(002151) and other high-quality companies in the industrial chain.
Dell’Oro report: the global ran market grew by more than 10% in 2021. According to c114, according to the latest report of dell’orogroup, a market research company, the growth of the global ran market slowed down in the fourth quarter of 2021, but this did not change the growth of the whole year. The total revenue of the overall 2g-5g ran market (excluding services) has increased at a double-digit percentage rate for two consecutive years, driving the global ran market close to $40 billion to $45 billion.
GSMA: if 5g will contribute US $610 billion to global GDP. According to c114, the Global Association for mobile communication systems (GSMA) once again called on governments to give priority to providing intermediate frequency spectrum for 5g. If the distribution is sufficient, it will support the services using this frequency band and contribute US $610 billion to the global GDP by 2030.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
