Key investment points
Interpretation of relevant contents of communication industry in government work report
The speed-up and fee reduction of the telecommunications industry may affect the degree of convergence or exceed expectations. During the 13th Five Year Plan period, the China Telecom Corporation Limited(601728) industry vigorously promoted the acceleration and reduction of fees. The 20172021 government work report mentioned the specific quantitative requirements related to the acceleration and reduction of fees, but the government work report did not mention the relevant contents.
The growth rate of military budget exceeded expectations, which was good for the national defense communication sector. We will build a modern management system for weapons and equipment, continue to deepen the reform of national defense and the army, and strengthen national defense science and technology innovation. In 2022, China's military budget was 1.45 trillion yuan, a year-on-year increase of 7.1%, an increase of 0.3pct over 2021.
Orderly promote the dual carbon work and continue to benefit the communication new energy track. Promote green and low-carbon development. Orderly promote carbon peak and carbon neutralization. Implement the carbon peak action plan. Promote the planning and construction of large-scale wind and solar power bases and their supporting regulatory power sources, and improve the consumption capacity of the power grid for renewable energy power generation.
Continue to promote the development of 5g, industrial Internet and other digital economy. 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.
New infrastructure projects such as counting from the east to the West may benefit from financial support. This year, it is planned to arrange 3.65 trillion yuan of special bonds for local governments. Start a number of qualified major projects, new infrastructure, transformation of old public facilities and other construction projects. We will strengthen the implementation of the policy of adding and deducting R & D expenses, and increase the proportion of adding and deducting scientific and technological small and medium-sized enterprises from 75% to 100%.
Benefit the communication sector, key operators, national defense and military industry, etc
Speed up and fee reduction will affect convergence, increase the growth of national defense budget, increase government investment funds and strengthen the implementation of the policy of adding and deducting R & D expenses, which will help to improve the innovation ability and overall competitiveness of the industry, and help enterprises reduce costs and increase efficiency.
In the context of completing the three-year action task of state-owned enterprise reform and the tense geopolitical situation, we are more optimistic about opportunities such as telecom operators, national defense communications and new communication energy. We suggest paying attention to:
Telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) .
National Defense Communication: Chengdu M&S Electronics Technology Co.Ltd(688311) , Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) , Beijing Jiaxun Feihong Electrical Co.Ltd(300213) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Glarun Technology Co.Ltd(600562) , Guangzhou Haige Communications Group Incorporated Company(002465) , Jushri Technologies Inc(300762) , etc.
New energy for communication: Shenzhen Envicool Technology Co.Ltd(002837) , Wenzhou Yihua Connector Co.Ltd(002897) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangzhou Goaland Energy Conservation Tech Co.Ltd(300499) , Willfar Information Technology Co.Ltd(688100) , State Grid Information&Communication Co.Ltd(600131) , Hengtong Optic-Electric Co.Ltd(600487) , etc.
Digital Economy & 5g application: Digital Economy & 5g application: the application of the digital economy: the application of the digital economy: the number of the number of the number of the number of the number of the application of the digital economy: the number of the \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Shanghai Baosight Software Co.Ltd(600845) , Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Meig Smart Technology Co.Ltd(002881) , Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , etc.
Risk tip: the development of digital economy and other related applications is not as expected; The investment in national defense informatization is less than expected.
