The thematic catalytic communication segment is expected to rebound from the bottom and maintain the recommended rating of the communication industry
Weekly market: this week, the Shanghai Composite Index fell 0.11%, the Shenzhen Component Index fell 2.93%, and the gem index fell 3.75%. In this week’s industry index, the communication sector fell by 1.49%; Among the individual stocks in the communication sector, the proportion of rising, maintaining and falling stocks was 18.75%, 5.47% and 75.78% respectively. Among them, in terms of individual stock growth, Hengxin Shambala Culture Co.Ltd(300081) (+ 23.09%), Avit.Ltd(300264) (+ 18.87%) and Zhong Fu Tong Group Co.Ltd(300560) (+ 16.79%) were among the top three.
In terms of sub sections: according to our data on the division of sub sections by companies in the communication industry, the relevant targets of cloud video section and operator section performed well this week, and the sub sections increased by 0.81% and 0.11% respectively.
We believe that with the continuous promotion of the construction of 5g base stations by China’s three major operators, the continuous accumulation and innovation of 5g applications, the rapid growth of 5g traffic is expected to accelerate, and the economic development of digital traffic is expected to exceed expectations, maintaining the “recommended” rating of the communication industry.
The two sessions emphasized the promotion of 5g large-scale application, and the operator’s operation data continued to improve in the first month of 2022
The 2022 government work report pointed out: promote the development of digital economy, strengthen the overall layout of Digital China Construction, build digital information infrastructure, promote the large-scale application of 5g, promote the digital transformation of industries, and develop smart cities and digital villages. Accelerate the development of industrial Internet, cultivate and expand digital industries such as integrated circuits and artificial intelligence, and improve the innovation and supply capacity of key software and hardware technologies. Improve the governance of digital economy, release the potential of data elements, and better enable economic development and enrich people’s lives.
On Wednesday, the major operators released the operation data for the first month of 2022, and the operation indicators achieved positive growth. The centralized equipment procurement of operators has been steadily promoted. Among them, China Mobile released the centralized procurement results of optical fiber distribution box products from 2022 to 2023, publicized the bid winning results of the first batch of PC server centralized procurement project package 16, and publicized the centralized procurement results of 2.6GHz radio and television dedicated core network equipment in 2022 China Telecom Corporation Limited(601728) start the centralized purchase project of optical fiber welding machine China United Network Communications Limited(600050) announced the bid winning results of centralized procurement of China United Network Communications Limited(600050) backbone data network integration services in 2022. In addition, China Mobile has achieved initial results in 6G research and development and released 8 6G series white papers. The application in the communication industry has made continuous breakthroughs. By the end of December 2021, there were more than 10000 application innovation cases in the 5g industry, covering more than 20 national economic industries such as industry and medical treatment. The application link has penetrated from the production auxiliary link to the core link, and the typical application scenario of “5g + industrial Internet” has gradually evolved to large-scale replication.
Investment suggestion: large space 5g application is the key direction of communication in the future
We believe that the investment focus of the communication industry is shifting from 5g equipment to application, and the valuation first and then the fundamentals are expected to rise. Suggestions and suggestions to focus on: cosmic cosmic infrastructure: a cosmic cosmic infrastructure: a cosmic cosmic infrastructure bid: a cosmic infrastructure bid: a cosmic infrastructure bid: the Zte Corporation(000063) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\( Fibocom Wireless Inc(300638) ), video conference Yealink Network Technology Co.Ltd(300628) ( Yealink Network Technology Co.Ltd(300628) ), Disaster monitoring faucet superimposes automatic driving target Shanghai Huace Navigation Technology Ltd(300627) ( Shanghai Huace Navigation Technology Ltd(300627) ), 5g message Montnets Cloud Technology Group Co.Ltd(002123) ( Montnets Cloud Technology Group Co.Ltd(002123) ). At the same time, as a long-term configuration direction, the communication operator sector also needs to pay special attention.
Risk warning: risk of rising raw material price; Global epidemic impact and uncertainty of foreign policy environment; 5g commercial promotion was less than expected.
