Core view
Industry highlights tracking: the government work report once again emphasizes the digital economy. On the one hand, the construction of new infrastructure of digital economy, such as 5g, Gigabit network, data center and spatial information infrastructure, has been accelerated; On the other hand, industrial Internet, Internet of things, unified communication and other industries continue to be digitalized and benefit from digital industrialization and public service industrialization. It is recommended to pay attention to the Internet of things modules [ Quectel Wireless Solutions Co.Ltd(603236) ], [ Fibocom Wireless Inc(300638) ]; IOT chip [ Rockchip Electronics Co.Ltd(603893) ]; Industrial Internet Gateway [ Beijing Inhand Networks Technology Co.Ltd(688080) ], [ 3Onedata Co.Ltd(688618) ]; Beidou industrial chain [ Shanghai Huace Navigation Technology Ltd(300627) ]; Optical devices and optical modules, such as [ Suzhou Tfc Optical Communication Co.Ltd(300394) ]; IDC, such as [ Guangdong Aofei Data Technology Co.Ltd(300738) ]; Unified communication; “Communication + energy” [ Jiangsu Zhongtian Technology Co.Ltd(600522) ], [ Guangdong Shenling Environmental Systems Co.Ltd(301018) ], [ Shenzhen Kstar Science & Technology Co.Ltd(002518) ].
In 2022mwc, 5g technology remained the focus. The evolution of 5g advanced technology is expected to promote the deepening application of 5g in the fields of metauniverse, industrial Internet, Internet of things, Internet of vehicles and so on. The acceleration of millimeter wave deployment plays an important role in making full use of spectrum resources and releasing 5g potential. It is recommended to pay attention to the main equipment supplier [ Zte Corporation(000063) ]; Three major operators [China Mobile], [ China Telecom Corporation Limited(601728) ], [ China United Network Communications Limited(600050) ], etc.
Industry key data tracking: 1) operator data: 5g penetration maintained growth in January 2022. As of January 2022, the total number of mobile services of the three operators was 1.655 billion, a net increase of 8.68 million compared with 2021. Among them, the total number of 5g users reached 760 million, a net increase of 28.3 million compared with 2021, and the penetration rate reached 45.8%; 2) 5g base stations: as of December 21, the total number of 5g base stations has reached 1425000; 3) Cloud computing and chip manufacturers: 21q3, bat capital expenditure totaled RMB 25.663 billion (year-on-year + 8%, month on month + 17%); In 21q4, the capital expenditure of the three major overseas cloud manufacturers and meta totaled US $36.553 billion (year-on-year + 26%, month on month + 11.8%). Xinhua’s revenue in February 2022 was NT $334 million (year-on-year + 32.5%, month on month – 13.6%); Intel dcg21q4’s revenue increased by + 20% year-on-year to US $7.3 billion; Amd computing and graphics21q4 achieved a revenue of US $2.6 billion (year-on-year + 32%, month on month + 8%).
Market review: in the past two weeks, the communication (Shenwan) index fell by 3.52%, and the Shanghai and Shenzhen 300 index fell by 2.98%. The performance of the sector is weaker than the market, with a relative return of – 0.54%, ranking 19th in the Shenwan industry. There are 126 companies in the communication stock pool we built, with an average rise or fall of – 0.57% this week. Among the sub sectors, IDC led the rise, with an increase of 11.20%.
Investment suggestion: grasp the callback opportunities of high-quality stocks and pay attention to the opportunities of Internet of things and cloud based construction. First, there are many catalysts for policy overweight, such as the Internet of things, Beidou and industrial Internet. Specifically, there are Internet of things modules (focusing on Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ), IOT chip ( Rockchip Electronics Co.Ltd(603893) ), industrial Internet gateway ( Beijing Inhand Networks Technology Co.Ltd(688080) ), Beidou application terminal ( Shanghai Huace Navigation Technology Ltd(300627) ). Second, the track combined with new energy and intelligent vehicles has high certainty and high valuation flexibility. Focus on “communication + energy” ( Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ) and “communication + automobile” ( Suzhou Recodeal Interconnect System Co.Ltd(688800) ).
The key recommended combinations in March 2022 are Quectel Wireless Solutions Co.Ltd(603236) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) , Suzhou Tfc Optical Communication Co.Ltd(300394) and Suzhou Recodeal Interconnect System Co.Ltd(688800) .
Risk tip: the global epidemic intensifies the risk, 5g investment and construction is less than expected, Sino US trade friction and other external environmental changes.
