In February, the market of the communication sub sector index improved and maintained the recommended rating of the communication industry
Monthly market: the Shanghai stock index rose by 3.00%; The Shenzhen Composite Index rose by 0.96%; The gem index fell by 0.95%; In the primary industry index, the communication sector increased by 5.57%. Among the individual stocks in the communication sector, the proportion of rising, maintaining and falling stocks was 75.78%, 5.47% and 18.75% respectively. Among them, in terms of individual stock growth, Hengxin Shambala Culture Co.Ltd(300081) (+ 51.70%), Hebei Sinopack Electronic Technology Co.Ltd(003031) (+ 37.97%) and Wuhan Tianyu Information Industry Co.Ltd(300205) (+ 30.86%) were among the top three.
In terms of sub sectors: according to our data on the division of sub sectors by companies in the communication industry, the relevant targets of IDC and optical devices sectors performed well this month, with sub sectors rising by 14.00% and 8.38% 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 overall economic operation of the communication industry is in good condition, and both mobile Internet business and fixed network business are growing
According to the latest data from the Ministry of industry and information technology, China’s total telecommunications business in 2021 reached 1.7 trillion yuan, an increase of 27.8% over the previous year China Telecom Corporation Limited(601728) business revenue totaled 1.47 trillion yuan, an increase of 8.0% over the previous year. More than 300 cities across the country started the construction of gigabit optical fiber broadband networks, and the investment in Internet broadband access increased by 40% over the previous year. In terms of total volume, mobile traffic consumption in 2021 is 23.6 times that in 2016. In 2021, mobile Internet traffic achieved a high growth rate of + 33.9% year-on-year.
The scale of 5g infrastructure continues to expand. China has built and opened 1.425 million 5g base stations, covering all prefecture level cities and urban areas, more than 98% of County cities and 80% of township towns and townships in China. The proportion of 5g users of the three major operators continued to rise, and the proportion of China’s mobile broadband service market continued to rise.
Investment suggestion: large space 5g application is the key direction of communication in the future
We believe that 5g is expected to shift its investment focus from basic equipment to basic equipment. Suggestions and suggestions to focus on targets: Cosmic infrastructure of the metacosmic: the light module of the cosmic infrastructure of the cosmic infrastructure of the metacosmic: the light module of the cosmic infrastructure of the cosmic universe: the light module 3 Zuming Bean Products Co.Ltd(003030) 303030303030303030303030303030303030303030\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ ( 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, the communication operator China Mobile (600941) also needs to focus on as a long-term configuration direction.
Risk warning: risk of rising raw material price; Global epidemic impact and uncertainty of foreign policy environment; 5g commercial promotion was less than expected.
