This week, the two sessions were officially held. In this year’s government work report, the construction of digital economy was put in a more important position. The report pointed out that we should strengthen the overall layout of Digital China Construction, build digital information infrastructure and promote the large-scale application of 5g. There are two important variables in the communication industry policy in this government report. The first is that the content related to speed-up and fee reduction has disappeared for the first time in recent years. The second is to strengthen the promotion of 5g application, from “enriching application scenarios” to “promoting 5g large-scale application”. We believe that the suspension of speed-up and decline will further improve the operation quality of operators, and the accelerated exploration of application will strengthen the demand on the flow side and drive the further stabilization and recovery of the communication industry chain. At the same time, with the coming of the intensive period of annual report and first quarter report, in addition to the Internet of things and optical module, investors are advised to actively pay attention to the undervalued targets of industrial chains with stable growth, such as Runjian Co.Ltd(002929) , Sichuan Tianyi Comheart Telecom Co.Ltd(300504) and so on.
Core recommendations:
\u3000\u30001. High quality leading companies on the flow bearing side: Eoptolink Technology Inc.Ltd(300502) Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) Suzhou Tfc Optical Communication Co.Ltd(300394)
\u3000\u30002. High quality companies with steady growth performance: Meig Smart Technology Co.Ltd(002881) Meig Smart Technology Co.Ltd(002881) , Fibocom Wireless Inc(300638) Fibocom Wireless Inc(300638) , Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628)
Communication industry policies in the government work report. This week, the two sessions were officially held. In this year’s government work report, the construction of digital economy was put in a more important position. The report pointed out that we should strengthen the overall layout of Digital China Construction, build digital information infrastructure and promote the large-scale application of 5g. There are two important variables in the communication industry policy in this government report. The first is that the relevant contents of raising speed and reducing fees disappear for the first time. The second is to strengthen the promotion of 5g application, from “enriching application scenarios” to “promoting 5g large-scale application”. We believe that the suspension of speed-up and decline will further improve the operation quality of operators, and the accelerated exploration of application will strengthen the demand on the flow side and drive the further stabilization and recovery of the communication industry chain.
Ministry of industry and information technology: it is planned to build more than 6 Shenzhen Fountain Corporation(000005) g base stations in 2022. On February 28, the State Council Information Office held a press conference on promoting the smooth operation, quality improvement and upgrading of industry and informatization. The meeting pointed out that (1) we should solidly promote the construction of 5g network. The goal is to build more than 6 Shenzhen Fountain Corporation(000005) g base stations this year, and it is planned to reach 2 million 5g base stations by the end of this year. (2) Vigorously promote 5g application innovation and development. Continue to further implement the 5g application “sailing” action plan. (3) Vigorously promote 5g iterative technology upgrading. We will strengthen the research and development of key chips and core devices, and support the industry to actively participate in the formulation and docking of international standards.
FMI: from 2022 to 2032, the compound annual growth rate of IOT manufacturing market is as high as 14.5%. According to c114, according to a recent analysis released by market research firm FMI, the scale of the manufacturing market of the Internet of things may reach US $399.08 billion by 2026, higher than US $175.3 billion in 2020, and the compound annual growth rate from 2022 to 2032 is 14.5%. The analysis shows that in the next 10 years, there are growth opportunities in various market segments based on components, solutions, services, organization scale, deployment mode, applications, vertical and regional.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
