Recently, China United Network Communications Limited(600050) and China Telecom Corporation Limited(601728) successively released annual reports for 2021. The revenue of China United Network Communications Limited(600050) in 2021 was 327854 million yuan, an increase of 7.9% year-on-year, and the net profit attributable to the parent was 6.305 billion yuan, an increase of 14.2% year-on-year. In China Telecom Corporation Limited(601728) 2021, the operating revenue was 434.2 billion yuan, an increase of 11.3% year-on-year, and the net profit attributable to the parent was 25.952 billion yuan, an increase of 24.4% year-on-year. We believe that in the long run, operators with low debt level and good cash flow have better investment value under the interest rate increase cycle of the Federal Reserve. At the same time, under the continuous volatile market environment, high dividend yield is expected to become an important support for stock prices in volatile markets. Subsequently, with the slowdown of speed-up and fee reduction, the large-scale exploration of 5g applications, the construction of digital economy and the fundamentals of operators’ bottom recovery are also expected to open long-term space for valuation repair. It is suggested that investors actively pay attention to the investment opportunities of the three operators.
Core recommendations:
\u3000\u30001. Submarine cable Duo: Jiangsu Zhongtian Technology Co.Ltd(600522) Eoptolink Technology Inc.Ltd(300502) , Hengtong Optic-Electric Co.Ltd(600487) Hengtong Optic-Electric Co.Ltd(600487)
\u3000\u30002. High quality companies with steady growth performance: Meig Smart Technology Co.Ltd(002881) Meig Smart Technology Co.Ltd(002881) , Eoptolink Technology Inc.Ltd(300502) Eoptolink Technology Inc.Ltd(300502) , China Mobile 600941, Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628)
China United Network Communications Limited(600050) and China Telecom Corporation Limited(601728) released the performance in 2021. Recently, China United Network Communications Limited(600050) and China Telecom Corporation Limited(601728) successively released annual reports for 2021. In 2021, the revenue of China United Network Communications Limited(600050) was 327854 million yuan, with a year-on-year increase of 7.9%, and the net profit attributable to the parent company was 6.305 billion yuan, with a year-on-year increase of 14.2%. In 2021, the operating revenue of China Telecom Corporation Limited(601728) was 434.2 billion yuan, with a year-on-year increase of 11.3%, and the net profit attributable to the parent company was 25.952 billion yuan, with a year-on-year increase of 24.4%. In terms of capital expenditure, 6 Lvjing Holding Co.Ltd(000502) 021 capital expenditure is 69 billion yuan, China Telecom Corporation Limited(601728) 2021 capital expenditure is 86.7 billion yuan, of which 5g capital expenditure is 38 billion yuan, accounting for 43.8%.
Dell’Oro report: the global telecom equipment market revenue in 2021 is close to 100 billion US dollars. Recently, dell’orogroup, a market research company, released a report on the global overall telecom equipment market in the fourth quarter of 2021. According to the data, the overall global telecommunications equipment market increased by 7% in 2021, achieving growth for the fourth consecutive year, which is mainly due to the soaring wireless revenue and the healthy demand for wired related equipment stimulated by the double-digit percentage growth of ran and broadband access segments. The total revenue of the global telecommunications equipment market was close to US $100 billion in 2021, an increase of more than 20% since 2017.
Dell’Oro report: the global service provider router and switch market revenue exceeded the pre epidemic level in 2021. According to the latest research report of market research company dell’orogroup, the global service provider router and switch market rebounded in 2021 and exceeded the income level before covid-19 epidemic. North America led the global market with a steady growth rate of double-digit percentage. Among them, network expansion projects such as Internet and cloud backbone network, mobile transmission and broadband aggregation in North America have jointly contributed to the region’s first annual growth since 2015.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
