This week, the CSI 300 fell by 4.22%, and the gem fell by 3.03%, of which the communication sector fell by 3.85%, and the price performance of the sector was stronger than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 1.96%; In the same period, the turnover rate of 300 constituent stocks in Shanghai and Shenzhen was 0.54%, and the overall activity of the sector was stronger than that of the market.
In terms of individual stocks in the communications sector, the top five companies that rose this week were: Leon Technology Co.Ltd(300603) (50.71%), Zjbc Information Technology Co.Ltd(000889) (23.70%), Gospell Digital Technology Co.Ltd(002848) (22.00%), Wutong Holding Group Co.Ltd(300292) (15.58%), Hangzhou Freely Communication Co.Ltd(603602) (12.12%); The companies with the top five declines are: Zte Corporation(000063) (- 12.90%), Broadex Technologies Co.Ltd(300548) (- 9.79%), Shenzhen Chengtian Weiye Technology Co.Ltd(300689) (- 9.58%), Shenzhen Cotran New Material Co.Ltd(300731) (- 9.18%), Suzhou Tfc Optical Communication Co.Ltd(300394) (- 9.04%).
The three major operators grew steadily, and the Internet industry of China Unicom developed rapidly China United Network Communications Limited(600050) released the annual report of 2021. The annual revenue reached 327.9 billion yuan, a year-on-year increase of 7.9%, of which the service revenue was 296.2 billion yuan, a year-on-year increase of 7.4%. The net profit was 14.4 billion yuan, a year-on-year increase of 15.0%. In terms of business, the mobile service revenue reached 164.1 billion yuan, an increase of 4.8% year-on-year; Fixed line broadband access revenue reached 44.8 billion yuan, a year-on-year increase of 5.2%; The industrial Internet business income reached 54.8 billion yuan, a year-on-year increase of 28.2%, accounting for 18.5% of the overall main business income. Industrial Internet business has become the “first engine” to promote the company’s revenue growth, accounting for 59%, of which China Unicom’s cloud revenue was 16.3 billion yuan, a year-on-year increase of 46.3%. Big data revenue reached 2.6 billion yuan, a year-on-year increase of 48%; Internet of things revenue 6 billion yuan, an increase of 43%. China Mobile released its operating conditions in 2021 and in the near future. It is estimated that the revenue in 2021 will be 844877 billion yuan – 852558 billion yuan, with a year-on-year increase of 10% – 11%. The net profit attributable to the parent company will be about 114307 billion yuan – 116464 billion yuan, with a year-on-year increase of 6% – 8%. The net profit deducted from non attributable to the parent company will be about 107285 billion yuan to 109328 billion yuan, with a year-on-year increase of 5% – 7% China Telecom Corporation Limited(601728) it is estimated that the revenue in 2021 will increase by 10% – 12% year on year, and the net profit attributable to the parent company will increase by 23% – 25% year on year.
China Unicom’s capital expenditure is expected to remain stable, and the mobile ARPU value continues to pick up. The China United Network Communications Limited(600050) actual capital expenditure in 2021 is 69 billion yuan, slightly lower than the budget of 70 billion yuan at the beginning of the year. According to the company’s communication, in 2022, the company will continue to moderately increase capital expenditure, keep the growth of capital expenditure matched with the growth of revenue, maintain a stable proportion of revenue, and plan to complete the construction of 5g network scale in about three years. In 2021 China United Network Communications Limited(600050) newly added 310000 base stations, with a cumulative construction of 690000 stations. In terms of the number of users, the net increase of the company’s mobile users in the whole year ended from negative to positive, with a net increase of 11.3 million to 317 million, a net increase of 8.95 million broadband users to 95.05 million, and the penetration rate of 5g package users increased to 49%. The mobile ARPU value reached 43.9 yuan, a year-on-year increase of 4.3%. The four major markets of China Mobile chbn have performed well. The scale of personal market has increased and the value has been improved. The number of mobile customers has reached 957 million, with a net increase of 14.97 million, of which the number of 5g package customers has reached 387 million, with a net increase of 222 million, maintaining the leading scale in the industry; The growth of the household market is strong, and the volume and income have increased. The number of wired broadband customers has reached 240 million, with a net increase of 29.78 million. It has maintained the leading position in the industry, and the expansion of smart families has achieved remarkable results In China Telecom Corporation Limited(601728) 2021, the number of mobile users reached 372 million, with 21.41 million new users in the whole year, the penetration rate of 5g package users exceeded 50%, and the number of wired broadband users reached nearly 170 million, with 11.18 million new users in the whole year.
The submarine cable maintained a high boom, and China’s submarine cable gradually went to sea Jiangsu Zhongtian Technology Co.Ltd(600522) released the operating data from January to February 2022. In the first two months, the revenue was about 6 billion yuan, with a year-on-year increase of about 17%, and the net profit attributable to the parent was about 800 million yuan, with a year-on-year increase of about 300%. The operating data showed a bright performance, and the growth rate of net profit exceeded expectations. We believe that it is mainly due to the rapid development of offshore wind power and new energy Hengtong Optic-Electric Co.Ltd(600487) announced that the company has successively won many Chinese and foreign offshore wind power projects, including “Vietnam jin’ou offshore wind power project”, “Jieyang Shenquan 2 offshore wind farm project”, “CGN new energy submarine cable inspection and maintenance framework agreement procurement project” “Saudi red sea submarine cable project” and “bzhong Kenli oil field group shore power application project old oil field reconstruction project 35kV submarine cable procurement project”, the total bid winning amount is 1.443 billion yuan, accounting for 4.46% of the company’s revenue in 2020, which is expected to have a positive impact on the performance in 2022. Up to now, the company has a total of offshore power projects such as submarine cable production, laying and fan installation, with orders of about 3.042 billion yuan, providing guarantee for the long-term growth of performance Ningbo Orient Wires & Cables Co.Ltd(603606) consolidate its advantages in the field of offshore cables and continue to develop umbilical cables. Recently, it was announced that it won the bid for the static umbilical cable project of Lingshui 25-1 gas field, with a total order of 520 million yuan. The offshore wind power plans of coastal provinces have been released one after another. During the 14th Five Year Plan period, China’s offshore wind power will increase by more than 100gw. It is expected to maintain a high outlook in the 14th Five Year Plan period.
Investment suggestion: it is suggested to focus on data centers: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) , Shanghaichengdiconstructioncorporationltd(603887) , etc; Equipment manufacturer: Unisplendour Corporation Limited(000938) (Xinhua III), Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) ; Optical devices and optical modules: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; Telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; IDC HVAC equipment: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) , Yimikang Tech.Group.Co.Ltd(300249) , etc; Internet of things and car Networking: the Internet of things and networking of things and car Networking: the Internet of things and car Networking: the following: Fibocom Wireless Inc(300638) etc; On board connector: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) ; Intelligent controller: Shenzhen Topband Co.Ltd(002139) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Longood Intelligent Electric Co.Ltd(300543) , Shenzhen Bestek Technology Co.Ltd(300822) ; Military communications and satellite applications: Jushri Technologies Inc(300762) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Shanghai Huace Navigation Technology Ltd(300627) , Chengdu Corpro Technology Co.Ltd(300101) , Guangzhou Haige Communications Group Incorporated Company(002465) , China Satellite Communications Co.Ltd(601698) , etc.
Risk tips: 5g investment is less than expected, market competition intensifies, overseas trade disputes, market systemic risks, etc
