Weekly topic: by the end of January 2022, the number of mobile users of operators has reached 1.655 billion, the number of 5g package users has reached 750 million, the penetration rate of 5g package users has reached 45.8%, and the number of wired broadband users has reached 511 million. In January 2022, the number of mobile users of operators increased by 8.697 million, exceeding expectations; The net increase of 5g package users was 28.299 million, which was improved on the same month on month basis; The number of wired broadband users increased by 6.417 million, exceeding expectations. In terms of mobile users, China Mobile has the strongest growth; In terms of broadband users, the three operators go hand in hand; In terms of 5g package users, China Telecom Corporation Limited(601728) 5g maintains the first penetration rate.
Views from the week: focus on the point of the week: focus on recommending the carrier’s leading China Mobile, the China Pacific Insurance (Group) Co.Ltd(601601) 728\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\faucet; Continue to pay attention to the leading digital new infrastructure segments such as Unisplendour Corporation Limited(000938) , Shanghai Baosight Software Co.Ltd(600845) , Zte Corporation(000063) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) .
Weekly topic – Mobile & broadband user growth exceeded expectations, and 5g user growth improved month on month. By the end of January 2022, the number of mobile users of operators had reached 1.655 billion, the number of 5g package users had reached 750 million, the penetration rate of 5g package users had reached 45.8%, and the number of wired broadband users had reached 511 million. In January 2022, the number of mobile users of operators increased by 8.697 million, exceeding expectations; The number of package users increased by 2.899 million compared with the same period last year; The number of wired broadband users increased by 6.417 million, exceeding expectations. In terms of mobile users, China Mobile has the strongest growth; In terms of broadband users, the three operators go hand in hand; In terms of 5g package users, China Telecom Corporation Limited(601728) 5g maintains the first penetration rate. By the end of January 2022, the penetration rates of China Mobile, China Telecom Corporation Limited(601728) , 6 Hainan Jingliang Holdings Co.Ltd(000505) g packages have reached 41.7%, 52.2% and 50.4% respectively.
This week, the operator’s series of centralized purchase was launched, and the shares of Zte Corporation(000063) , Unisplendour Corporation Limited(000938) and Unisplendour Corporation Limited(000938) were among the top The results of 6 Wuhan Department Store Group Co.Ltd(000501) 0g PON centralized purchase, 6 Lvjing Holding Co.Ltd(000502) 022 cloud server centralized purchase, 6 Lvjing Holding Co.Ltd(000502) 022100g WDM OTN equipment centralized purchase, China Telecom Corporation Limited(601728) 20222023 server centralized purchase will be released successively this week Zte Corporation(000063) ranks first in the centralized purchase of 6 Wuhan Department Store Group Co.Ltd(000501) 0g PON and OTN equipment. In addition, as operators continue to develop cloud services, the demand for servers continues to increase. China Unicom and China Telecom have a large scale of centralized server procurement this time, with ZTE, Ziguang, Inspur, hyperfusion and other manufacturers taking the top share. We are optimistic that the server business of Zte Corporation(000063) and Unisplendour Corporation Limited(000938) will achieve good development.
Last week’s market review: last week, the Shanghai Composite Index rose by – 1.13%, the Shenzhen Component Index rose by – 0.35%, the gem index rose by 1.03%, the Shanghai and Shenzhen 300 index rose by – 1.67%, and the communication (CITIC) index rose by 0.96%, ranking 8 / 30 among 60 Zuming Bean Products Co.Ltd(003030) industry sectors, and ranking top among TMT sectors (electronics, telecommunications, computer and media).
Last week’s key news and announcement: operators: the number of users of the three operators in January announced that the growth of mobile & broadband users exceeded expectations, and the growth of 5g users improved month on month (source: the official websites of the three operators); Equipment manufacturer:
6 Wuhan Department Store Group Co.Ltd(000501) 0g PON centralized purchase, 6 Lvjing Holding Co.Ltd(000502) 022 cloud server centralized purchase, China United Network Communications Limited(600050) 2022100g WDM OTN equipment centralized purchase, China Telecom Corporation Limited(601728) 20222023 server centralized purchase results were released successively this week, and the shares of Zte Corporation(000063) and Unisplendour Corporation Limited(000938) were higher (source: operator purchase and bidding network); Optical communication: seamewe-6 consortium announced on February 21 that the construction of 19200 km submarine optical cable system connecting many countries and regions between Singapore and France has begun (source: Cable Network); Internet of things:
Shenzhen H&T Intelligent Control Co.Ltd(002402) issued the annual report for 2021. In 2021, the company achieved an operating revenue of 5.986 billion yuan, an increase of 28.30% over the same period of last year; The net profit attributable to the parent company was 5.5336 million yuan, an increase of 39.73% over the same period of last year (source: company announcement); Data center and cloud computing: vertiv research shows that the edge part of the total computing volume has increased by 29%. Industry wide investment in edge computing will revolutionize the data center ecosystem in the next four years (source: IDC information network).
Risk factors: 5g industrialization is lower than expected; The development of Internet of things applications is less than expected; The capital expenditure of cloud computing manufacturers is lower than expected; The shortage of upstream raw materials exceeds the expectation; Market liquidity is lower than expected; The global epidemic control was less than expected.
Investment strategy: 1) operator sector: the configuration value of high dividend + undervalued value of operators is prominent. China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) , are recommended. 2) Internet of things sector: with strong growth certainty, it is expected that in 2022, the revenue will grow rapidly + the profit margin will improve. It is recommended that Quectel Wireless Solutions Co.Ltd(603236) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Fibocom Wireless Inc(300638) , Yealink Network Technology Co.Ltd(300628) , etc. 3) Digital new infrastructure: continue to pay attention to Unisplendour Corporation Limited(000938) , Shanghai Baosight Software Co.Ltd(600845) , Zte Corporation(000063) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) and other digital new infrastructure segmentation leaders. 4) Other sectors: pay attention to the business expansion of the communication segment leaders in new energy vehicles, wind power photovoltaic and energy storage, and the growth improvement brought by Suzhou Recodeal Interconnect System Co.Ltd(688800) , Shenzhen Envicool Technology Co.Ltd(002837) , etc.
