Key investment points
This week, the CSI 300 fell by 1.68% and the gem fell by 3.75%, of which the communication sector fell by 1.66%, and the price performance of the sector was stronger than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 1.56%; In the same period, the turnover rate of 300 constituent stocks in Shanghai and Shenzhen was 0.46%, and the overall activity of the sector was stronger than that of the market. In terms of individual stocks in the communications sector, the top five companies that rose this week were: Hengxin Shambala Culture Co.Ltd(300081) (23.09%), Avit.Ltd(300264) (18.87%), Zhong Fu Tong Group Co.Ltd(300560) (16.79%), Hangzhou Freely Communication Co.Ltd(603602) (10.00%), Wenzhou Yihua Connector Co.Ltd(002897) (9.98%); The companies with the top five declines are: Hangzhou Prevail Optoelectronic Equipment Co.Ltd(300710) (- 21.74%), Tianjin 712 Communication & Broadcasting Co.Ltd(603712) (- 12.07%), Sunsea Aiot Technology Co.Ltd(002313) (- 12.06%), Allwin Telecommunication Co.Ltd(002231) (- 11.67%) and bangxun Technology (- 10.92%).
Digital economy promotes the construction of information infrastructure. The 2022 government work report was released on March 5, which proposed “promoting the development of digital economy and strengthening the layout of Digital China Construction” and launched three points: first, build digital information infrastructure, promote 5g large-scale application, promote industrial digital transformation, and develop smart city and digital village; Second, accelerate the development of industrial Internet, cultivate and expand digital industries such as integrated circuits and artificial intelligence, and improve key software and hardware technologies and supply capacity; Third, improve the governance of digital economy, release the potential of data elements, and better enable economic development and enrich people’s lives. According to the data of the Ministry of industry and information technology, China has built and opened a total of 1.425 million 5g base stations by the end of 2021. It is expected that more than 6 Shenzhen Fountain Corporation(000005) g base stations will be built in 2022, reaching 2 million by the end of the year. Information and communication infrastructure, digital consumption and digital industry are developing rapidly. The 14th five year plan for the development of digital economy clearly puts forward that the proportion of the added value of China’s core industries of digital economy in GDP will increase from 7.8% in 2020 to 10% in 2025. Many places have put forward digital economy development goals and corresponding development plans in the local two sessions, which is expected to further improve the landing speed of digital economy. Compared with the statements on the digital economy in the government work report in recent years, the construction of underlying information infrastructure is more prominent this time. Under the trend of industrial digital transformation and urban and rural digital construction, the promotion of “double Gigabit” deployment and new infrastructure such as data center will be accelerated, including operators, equipment manufacturers, optical fiber and optical cable Optical communication related manufacturers such as optical modules and cloud computing related manufacturers such as data centers are expected to usher in new opportunities for development. At the same time, the digital economy will expand industry application scenarios, boost the prosperity of the Internet of things, accelerate terminal innovation, and pay attention to module manufacturers and other objects related to the Internet of things and the Internet of vehicles.
Tax incentives will be strengthened to support the growth of scientific and technological enterprises. The government work report proposes to promote scientific and technological innovation, break through the blocking point of supply constraints, improve the quality of development by relying on innovation, and support all localities and enterprises to increase scientific and technological investment. Among them, the proportion of the addition and deduction of R & D expenses of scientific and technological small and medium-sized enterprises will be increased from 75% to 100%, tax preference will be implemented for the basic research of enterprise investment, and equipment and instruments will be improved to accelerate depreciation Preferential income tax policies for high-tech enterprises. At the same time, we will continue to implement the new combined tax support policy. On the one hand, we will continue to implement the tax reduction and fee reduction policy to support the manufacturing industry, small and micro enterprises and individual industrial and commercial households, improve the scope of reduction and exemption, and expand the scope of application. On the other hand, we will implement a large-scale tax rebate for the retained tax credit, focus on supporting the manufacturing industry, and comprehensively solve the problems of manufacturing, scientific research and technical services Ecological and environmental protection and other industries. Expanding the scale of tax retention and credit will help enterprises reduce capital costs and encourage manufacturing owners to invest more money in reproduction activities such as equipment purchase and technology research and development. Compared with the policy of increasing the deduction proportion of R & D expenses of manufacturing enterprises to 100% in 21 years and refunding the incremental VAT allowance to advanced manufacturing enterprises in full on a monthly basis, the tax preference is significantly increased. The large-scale financial support given by fiscal and tax policies to science and technology and manufacturing enterprises will effectively promote enterprises to improve their independent innovation ability, cultivate and expand new driving forces, and tackle key core technologies, so as to provide a reliable guarantee for the safety and stability of the industrial chain and supply chain. Through a series of policies such as reducing fees and taxes, specialized, special and new enterprises have developed rapidly into the core competitiveness of the manufacturing industry, driving the intelligent and digital upgrading of traditional industries and the accelerated development of advanced manufacturing clusters. Small and medium-sized enterprises in the field of communication are expected to benefit.
The centralized purchase of operators’ servers has been implemented one after another, and the demand continues to increase. Recently, the three major operators have successively announced the results of centralized server purchase. (1) 6 Lvjing Holding Co.Ltd(000502) 022: ZTE, Inspur, hyperfusion beacon and Ziguang were among the successful bidders for centralized purchase of cloud servers, among which Zte Corporation(000063) won the first share. According to the previous bidding announcement, in order to meet the development needs of China Unicom’s cloud business, the project purchased 44818 servers with a budget scale of 3.278 billion yuan (excluding tax). The project is divided into two packages, The first package involves 21 models, a total of 44000 servers, with a budget of 3.21 billion yuan (excluding tax); Package II involves three models, a total of 825 servers, with a budget of 68.25 million yuan (excluding tax). (2) in China Telecom Corporation Limited(601728) 2023, a total of 12 manufacturers were shortlisted for the server centralized purchase project, of which ZTE and Xinhua III were shortlisted for all seven standard packages. This centralized purchase is one of the largest server centralized purchase projects of Chinese operators so far, covering all kinds of server models, with a total amount of more than 13 billion yuan. According to the announcement, the project is divided into seven standard packages, and the estimated purchase quantity is 200000 units, The localization proportion exceeds 25%. (3) The first batch of PC server centralized procurement projects of China Mobile from 2021 to 2022 purchased about 163700 PC servers in total, and the procurement demand satisfaction period is about half a year. The project is divided into 16 bid packages. This procurement is mainly for mobile cloud and it cloud. The number of bid packages and the total procurement volume are the highest in previous years. At present, among the bid winning results of 13 bid packages, Zte Corporation(000063) Xinhua III was shortlisted in seven of them. The scale of centralized server procurement of the three operators is large. From the overall bidding and bid winning results, the proportion of localization has increased, and ZTE and Xinhua are in the lead. As China puts forward new infrastructure goals such as accelerating 5g, big data center, artificial intelligence and industrial Internet, operators continue to layout cloud services and drive the increasing demand for servers.
Shandong released the 2022 energy working document and accelerated offshore wind power planning. Recently, Shandong Province has made it clear that the energy development goal in 2022 is that the total installed capacity of power will reach about 180gw, and the installed capacity of new and renewable energy power generation will reach more than 70gw, accounting for about 38%. It will focus on promoting the construction of “five bases and two demonstration”. Among them, the total planned scale of offshore wind power base is 35gw, focusing on promoting the construction of more than 5GW projects in Bozhong and the south of peninsula, and completing the grid connection of 2gw, Strive to incorporate the 7.6gw site into the national far-reaching offshore wind power planning; Lay out 20 million kilowatt offshore photovoltaic bases “around the Bohai Sea” and “along the Yellow Sea”, with a total scale of more than 42GW. Accelerate the development of pile foundation fixed offshore photovoltaic, with a construction scale of more than 3gw and a grid connection of about 1.5gw; In addition, we will build large-scale scenic bases such as the saline alkali beach in Lubei and the coal mining subsidence area in Southwest Shandong, promote the distributed photovoltaic development of the whole county, and promote the improvement of ecological environment quality.
As one of the five offshore wind power bases in the 14th five year plan, Shandong offshore wind power started late, but has been accelerating recently. In December 21, the first batch of offshore wind power demonstration projects, peninsula south No. 3 and South No. 4 offshore wind power, were put into operation in full capacity, with a total installed capacity of 0.6gw. At present, Shandong Changyi Laizhou Bay phase I (300MW) Shandong energy Bozhong offshore wind power site a project (500MW) has completed the bidding. Bozhong project is the first affordable offshore wind power project in the province. It only takes 99 days from start to approval. Guohua invested in Shandong 500MW offshore wind power project and the U and V sites of the South China Sea wind power base on the Shandong Peninsula of the state power investment successively launched the preliminary work bidding. According to the data of the national energy administration, the newly added installed capacity of offshore wind power in China in 21 years was 16.9gw, with a year-on-year increase of 452%. Since October 21, Guangdong, Zhejiang, Jiangsu and other provinces have restarted the bidding of offshore wind projects. Combined with the 14th five year plan of coastal provinces, the enthusiasm of local offshore wind power construction is expected to be maintained, and the industry is still in the stage of rapid development, Under the trend of fan parity, the new installed capacity is expected to remain stable and upward. Submarine cable directly benefits from the improvement of offshore wind power boom and is optimistic about the growth of leading manufacturers.
Investment suggestion: focus on equipment suppliers: Unisplendour Corporation Limited(000938) (Xinhua III), Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) ; Data center: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) , etc; Telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; Internet of things and car Networking: the Internet of things and networking of things and car Networking: the Internet of things and car Networking: the following: Fibocom Wireless Inc(300638) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ etc; Optical devices and optical modules: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; IDC HVAC equipment: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) , Yimikang Tech.Group.Co.Ltd(300249) , etc; Submarine cable and optical fiber cable: Jiangsu Zhongtian Technology Co.Ltd(600522) , Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) , Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) ; On board connector: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) ; Intelligent controller: Shenzhen Topband Co.Ltd(002139) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Longood Intelligent Electric Co.Ltd(300543) , Shenzhen Bestek Technology Co.Ltd(300822) ; Military communications and satellite applications: Jushri Technologies Inc(300762) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Shanghai Huace Navigation Technology Ltd(300627) , Chengdu Corpro Technology Co.Ltd(300101) , Guangzhou Haige Communications Group Incorporated Company(002465) , China Satellite Communications Co.Ltd(601698) , etc.
Risk warning events: 5g investment is less than expected, market competition intensifies, technology upgrading is less than expected, market systemic risk, etc
