Key investment points
This week’s strategic view: 1. The strong voice of policies enables the development of digital economy, and the construction of new infrastructure of digital economy is accelerated: the fifth reference to digital economy in the government work report reflects that China pays more attention to the development of digital economy, the connotation and definition of digital economy are constantly enriched and embodied, and all links of the industrial chain are expected to benefit fully. 2. New technologies support the upgrading of traditional infrastructure and meet the development needs of Digital Economy: according to the latest data of IDC, the annual revenue of global Ethernet switches in 2021 was US $30.7 billion, a year-on-year increase of 9.7%. The annual revenue of global SP routers was US $15.9 billion, a year-on-year increase of 6.5%. The development of Ethernet switch market promotes the development of digital infrastructure, helps new digital infrastructure and meets the development needs of digital economy. 3. The industrial chain of digital economy has fully benefited, and the business prosperity of the subdivision direction is high: the Zte Corporation(000063) revenue and net profit attributable to the parent company in 2021 were 114522 billion yuan and 6.813 billion yuan respectively, a double record high Thunder Software Technology Co.Ltd(300496) achieved a revenue of more than 4 billion yuan, an increase of 57.04% over the same period in 2020. From January to February 2022, Jiangsu Zhongtian Technology Co.Ltd(600522) achieved a net profit of about 800 million yuan attributable to shareholders of listed companies, with a year-on-year increase of about 300%, and the revenue exceeded investors’ expectations.
Industry Outlook: Shanghai Optical Expo in Munich in 2022 (2022.3.232022.3.25)
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Recommended (covered): Operator: China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; 5g main equipment: Zte Corporation(000063) , Fiberhome Telecommunication Technologies Co.Ltd(600498) , Hytera Communications Corporation Limited(002583) ; Energy Informatization: Willfar Information Technology Co.Ltd(688100) ; New energy supporting: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) ; Optical module: Suzhou Tfc Optical Communication Co.Ltd(300394) , Huagong Tech Company Limited(000988) , Zhongji Innolight Co.Ltd(300308) , Accelink Technologies Co.Ltd(002281) ; PCB： Shenzhen Fastprint Circuit Tech Co.Ltd(002436) ； Optical fiber cable: Fiberhome Telecommunication Technologies Co.Ltd(600498) ; Internet of things / Internet of vehicles: Thunder Software Technology Co.Ltd(300496) ; IDC： Guangdong Aofei Data Technology Co.Ltd(300738) Beijing Sinnet Technology Co.Ltd(300383) ； Network visualization: Shenzhen Sinovatio Technology Co.Ltd(002912) ; 5g industry network: Hytera Communications Corporation Limited(002583) ; Cloud computing / edge computing: Ucloud Technology Co.Ltd(688158) ; Related to urban digital transformation: Iflytek Co.Ltd(002230) .
Suggested attention (not covered): big data industry: Hcr Co.Ltd(688500) , Merit Interactive Co.Ltd(300766) , Bonree Data Technology Co.Ltd(688229) , Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ; Operator: China Mobile; Server / router / switch: Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Inspur Electronic Information Industry Co.Ltd(000977) ; Energy Informatization: Beijing Forever Technology Co.Ltd(300365) ; New energy supporting: Shenzhen Honor Electronic Co.Ltd(300870) , Shenzhen Cotran New Material Co.Ltd(300731) , Shenzhen Kexin Communication Technologies Co.Ltd(300565) ; Optical module: Eoptolink Technology Inc.Ltd(300502) , Cig Shanghai Co.Ltd(603083) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Broadex Technologies Co.Ltd(300548) ; IC carrier board / PCB: Shennan Circuits Co.Ltd(002916) , Victory Giant Technology (Huizhou)Co.Ltd(300476) , Suntak Technology Co.Ltd(002815) ; Optical fiber and optical cable: Hengtong Optic-Electric Co.Ltd(600487) , Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) ; Internet of things / Internet of vehicles: Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Topband Co.Ltd(002139) ; IDC: Beijing Highlander Digital Technology Co.Ltd(300065) , Shanghai Baosight Software Co.Ltd(600845) , Hang Zhou Iron & Steel Co.Ltd(600126) , Jiangsu Shagang Co.Ltd(002075) , chengdi shares, Leon Technology Co.Ltd(300603) , Century Internet, and Wanguo data; Beidou: Chengdu Corpro Technology Co.Ltd(300101) , Zhuhai Orbita Aerospace Science & Technology Co.Ltd(300053) , Piesat Information Technology Co.Ltd(688066) , Shanghai Huace Navigation Technology Ltd(300627) ; Carbon neutralization: Jiangsu Zhongtian Technology Co.Ltd(600522) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ; Related to urban digital transformation: Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Zhejiang Dahua Technology Co.Ltd(002236) , Vanjee Technology Co.Ltd(300552) , Pci Technology Group Co.Ltd(600728) , Vantone Neo Development Group Co.Ltd(600246) , Anhui Sinonet & Xinlong Science & Technology Co.Ltd(002298) ; Satellites with low earth orbit orbit: followingthe following lower orbit orbit satellites: followingfollowing the following following following the following following: followingthe lower orbit satellite: followingthe following following following the lower orbit satellite: followingthe lower orbit satellite: followingthe lower orbit satellite: followingthe lower orbit satellite: Tsingtao Brewery Company Limited(600600) 600 China Spacesat Co.Ltd(600118) of the ;, Yaguang Technology Group Company Limited(300123) , Shanghai Hugong Electric Group Co.Ltd(603131) , Xingyu Wangda; HD Video: Wuhan Xingtu Xinke Electronics Co.Ltd(688081) ; Cloud computing / edge computing: Wangsu Science & Technology Co.Ltd(300017) ; Quantum information industry: Quantumctek Co.Ltd(688027) ; Small base stations: Jushri Technologies Inc(300762) , Genew Technologies Co.Ltd(688418) ; Iron tower: China iron tower; National first network: Beijing Gehua Catv Network Co.Ltd(600037) , Shaanxi Broadcast & Tv Network Intermediary(Group)Co.Ltd(600831) ; Industrial Internet: Foxconn Industrial Internet Co.Ltd(601138) ; Big data: Merit Interactive Co.Ltd(300766) , Huichen information; Online education: Dingli Corp.Ltd(300050) , lischen; Antenna RF: Tongyu Communication Inc(002792) , Huizhou Speed Wireless Technology Co.Ltd(300322) , Suzhou Shijia Science & Technology Inc(002796) ; Heat dissipation: Jones Tech Plc(300684) ; UWB： Haoyun Technologies Co.Ltd(300448) 。
Market review: this week (from March 7, 2022 to March 11, 2022, the same below), the communication (Shenwan) index fell 3.60%; The CSI 300 index fell 4.22% and the industry outperformed the market by 0.62pp. Recent performance of Soochow communication preferred index: it fell 5.15% this week and 16.63% year to date, underperforming the communication Shenwan index by 8.62pp.
Risk warning: the operator’s income is lower than expected; Policy support is less than expected; The progress of 5g industry is less than expected; 5g network construction progress is less than expected.
