Important trends in the industry this week:
The government work report puts forward the "digital economy" again and pays attention to double Gigabit investment opportunities
On March 10, the 2022 government work report proposed "promoting the development of digital economy", which is also the fourth consecutive year that the government work report mentioned "digital economy". The new infrastructure represented by gigabit network and 5g is an important support to promote the continuous strengthening, optimization and expansion of China's digital economy.
By the end of the 21st century, China had built the world's largest 5g network, with an annual 5g investment of 184.9 billion yuan, accounting for 45.6% of the investment in fixed assets of telecommunications. A total of 1.425 million 5g base stations had been built and opened, including 840000 jointly built and shared 5g base stations, covering all prefecture level cities, more than 98% of County cities and 80% of township towns in China, And gradually push forward to rural areas with demand. More than 300 cities across the country have started the construction of gigabit optical fiber broadband networks. By the end of 2021, 7.86 million 10g PON ports have been built, with the ability to cover 300 million households. It can be seen that the construction coverage and application popularization of new information infrastructure such as 5g and gigabit optical network in China have accelerated in an all-round way.
Investment view this week:
In the short term, focus on the subject of high growth & low value & policy benefits (digital economy, East West calculation, etc.) in the first quarter report. Looking forward to the whole year, focus on the high boom track and the low / undervalued value + reversal logic target. Key focus: applications in subdivided fields such as communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and industrial Internet have entered the stage of accelerated development, and the growth logic is clear. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. It is suggested to pay attention to: Internet of things / smart car, optical fiber cable / submarine cable, Gigabit broadband, military communication, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and optical cable is open), Hengtong Optic-Electric Co.Ltd(600487) (Ocean + optical fiber and optical cable dual drive), Jiangsu Etern Company Limited(600105) (optical communication recovers, and the automobile harness opens the incremental space). It is suggested to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise simultaneously);
3. Light module & light device: light module & light device: 3 Zuming Bean Products Co.Ltd(003030) ;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / networking of vehicles: what's to be: to highlight: what's to recommend to highlight: Skyworth Digital Co.Ltd(000810) , Cubic Sensor And Instrument Co.Ltd(688665) (mechanical combined coverage); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Shenzhen Neoway Technology Co.Ltd(688159) , Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendations: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix), Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and cable has started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: a key recommendation from IDC: a key recommendation from the IDC: to focus on: Hongda Xingye Co.Ltd(002002) 335 etc;
IV. military communication & Beidou: communication is a serious weakness in the field of national defense informatization, and the penetration rate of ultrashort wave and area width can be improved. It is suggested to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ; 5、 Digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) etc.
Risk warning: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the speed of downstream application recommendation is lower than expected, and the risk of trade war is uncertain.
