Investment summary:
Talk every Monday:
China United Network Communications Limited(600050) released the performance report for 2021, and the overall operation has made steady progress. The data show that China United Network Communications Limited(600050) operating revenue reached 327.9 billion yuan in 2021, with a year-on-year increase of 7.9%; Service revenue growth hit an 8-year high; The net profit attributable to the parent company was 6.305 billion yuan, a year-on-year increase of 14.2%.
The results of network co construction and sharing have been obvious, the user value has been continuously optimized, and the user scale has been steadily increased. The company cooperates closely with China Telecom Corporation Limited(601728) to open 310000 new 5g base stations. In 2021, there will be a net increase of 11.3 million mobile users and 155 million 5g package users; ARPU of mobile users reached 43.9 yuan, a year-on-year increase of 4.3%.; The number of fixed line broadband users increased by 8.95 million in the whole year, and the scale of net users reached a record high. Industrial Internet revenue increased by 28.2% year-on-year, of which China Unicom’s cloud business increased significantly. In 2021, the industrial Internet business revenue reached 54.8 billion yuan, accounting for 18.5% of the overall service revenue. Among them, the cloud revenue of China Unicom was 16.3 billion yuan, a year-on-year increase of 46.3%.
The company increased its investment in scientific research. R & D expenses increased by 61.7% year-on-year, the proportion of scientific and technological innovation personnel reached 22%, and the number of authorized patents increased significantly by 120% year-on-year.
Capital expenditure will be moderately increased in 2022, and it is planned to complete the construction of 5g network scale in about three years. China Mobile announced its performance and operation in 2021 and continued to promote the omnidirectional and integrated development of chbn. The company continued to promote chbn in all directions, with 957 million mobile customers and a net increase of 14.97 million, including 387 million 5g package customers and a net increase of 222 million, keeping the scale leading in the industry; Wired broadband customers reached 240 million, with a net increase of 29.78 million; The government enterprise market has become an income increasing engine.
China Telecom Corporation Limited(601728) released the announcement of performance and operation in 2021. After preliminary accounting, the operating revenue of the company in 2021 increased by 10% – 12% compared with the same period last year, and the net profit attributable to the shareholders of the parent company increased by 23% – 25% compared with the same period last year. By the end of 2021, the company had 372 million mobile users, 5g package user penetration exceeded 50%, and nearly 170 million wired broadband users.
The capital expenditure of China Tower in 2022 is planned to be 30 billion yuan, with a year-on-year increase of 19.1%. Recently, China Tower released its annual report for 2021. The capital expenditure in 2021 was 25.192 billion yuan, a year-on-year decrease of 32.1%. The company deepened the development strategy of “one body and two wings” and increased capital expenditure. The company’s capital expenditure this year is 30 billion yuan.
Market review:
This week (202203.07202203.11), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by – 4.00%, – 4.40%, – 3.03% respectively, and the Shenwan communication index increased by – 3.60%, ranking seventh in Shenwan’s 28 primary industries.
Performance of individual stocks in the communication sector this week:
The top five of the top five for the share price is: Leon Technology Co.Ltd(300603) , Broadex Technologies Co.Ltd(300548)
Investment strategy: (1) 5g network coverage continues to improve, the number of 5g base stations exceeds 1.4 million, and the leading 5g equipment manufacturer is continuously recommended: Zte Corporation(000063) ; (2) The increase in the penetration rate of 5g package users drives the Arup value of operators. Operators give up the price war and improve user stickiness by providing more high-quality and differentiated services. It is suggested to pay attention to: China Mobile; (3) The development of the Internet of things industry has entered the fast lane, focusing on the investment opportunities of vehicle communication modules. It is suggested to pay attention to Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) ; (4) In the context of double carbon, green energy conservation has become the main theme. The key recommendation is precision temperature control faucet: Shenzhen Envicool Technology Co.Ltd(002837) .
Risk tip: the development of 5g is not as expected, the trade friction between China and the United States has further escalated, and the epidemic has further spread.
