Core view
Industry highlights tracking: the three major operators announced their performance in 2021. The performance achieved steady growth in 2021. With the in-depth application of 5g, the accelerated penetration of Gigabit broadband and the business opportunities of digital economy innovation, we are optimistic about the follow-up development of the three operators, focusing on [China Mobile], [ China Telecom Corporation Limited(601728) ], [ China United Network Communications Limited(600050) ]. OFC 2022 high-speed products have been unveiled, and silicon light and CPO hotspots continue to grow. In terms of products, during OFC 2022 exhibition, 400g coherent optical module and 800g optical module have frequent highlights; In terms of technology, silicon light, CPO and other technologies are still the focus, and the application of related technologies is expected to accelerate; In terms of application, 5g infrastructure continues to advance, cloud infrastructure accelerates recovery, and market demand is expected to continue to pick up. It is suggested to pay attention to domestic optical module leaders Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) and other optical device manufacturers such as Suzhou Tfc Optical Communication Co.Ltd(300394) , Advanced Fiber Resources (Zhuhai) Ltd(300620) .
Industry key data tracking: 1) operator data: 5g penetration maintained growth in January 2022. As of January 2022, the total number of mobile services of the three operators was 1.655 billion, a net increase of 8.68 million compared with 2021. Among them, the total number of 5g users reached 760 million, a net increase of 28.3 million compared with 2021, and the penetration rate reached 45.8%; 2) 5g base stations: as of December 21, the total number of 5g base stations has reached 1425000; 3) Cloud computing and chip manufacturers: 21q3, bat capital expenditure totaled 25.663 billion yuan (year-on-year + 8%, month on month + 17%); In 21q4, the capital expenditure of the three major overseas cloud manufacturers and meta totaled US $36.553 billion (year-on-year + 26%, month on month + 11.8%). Xinhua’s revenue in February 2022 was NT $334 million (year-on-year + 32.5%, month on month – 13.6%); Intel DCG 21q4 revenue + 20% year-on-year to US $7.3 billion; Amd computing and graphics 21q4 achieved a revenue of US $2.6 billion (year-on-year + 32%, month on month + 8%).
Market review: this week, the communication (Shenwan) index fell by 0.38%, and the Shanghai and Shenzhen 300 index fell by 1.06%. The performance of the sector is stronger than the market, with a relative return of 0.68%, ranking fifth in the Shenwan industry. There are 126 companies in the communication stock pool we built, with an average rise or fall of – 3.13% this week. Among the sub sectors, IDC led the rise, with an increase of 3.10%.
Investment suggestion: grasp the callback opportunities of high-quality stocks and pay attention to the opportunities of Internet of things and cloud based construction. First, there are many catalysts for policy overweight, such as the Internet of things, Beidou and industrial Internet. Specifically, there are Internet of things modules (focusing on Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ), IOT chip ( Rockchip Electronics Co.Ltd(603893) ), industrial Internet gateway ( Beijing Inhand Networks Technology Co.Ltd(688080) ), Beidou application terminal ( Shanghai Huace Navigation Technology Ltd(300627) ).
Second, the track combined with new energy and intelligent vehicles has high certainty and high valuation flexibility. Focus on “communication + energy” ( Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ) and “communication + automobile” ( Suzhou Recodeal Interconnect System Co.Ltd(688800) ). The key recommended combinations in March 2022 are Quectel Wireless Solutions Co.Ltd(603236) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) , Suzhou Tfc Optical Communication Co.Ltd(300394) and Suzhou Recodeal Interconnect System Co.Ltd(688800) .
Risk tip: the global epidemic intensifies the risk, 5g investment and construction is less than expected, Sino US trade friction and other external environmental changes.
