Core view
Industry highlights tracking: the Ministry of industry and information technology announced the economic operation of the communication industry from January to February. From January to February 2022, China Telecom Corporation Limited(601728) business revenue increased by 9%, reaching a new high in recent years, continuing the high growth momentum in 2021. Innovative services and Gigabit broadband services have grown brightly and become the main driving force for the growth of operators. It is suggested to pay attention to the investment opportunities of operators and focus on [China Mobile].
China Southern Power Grid issued the digital plan for the 14th five year plan. On the one hand, China Southern Power Grid will actively consolidate the infrastructure and build new large and above green energy-saving data centers such as Southern Energy Data Center, highlighting the importance of IDC in the era of digital economy. The industrial chain has entered a new stage of green development. It is suggested to pay attention to IDC, such as [universal data], and “communication + energy”, such as [ Jiangsu Zhongtian Technology Co.Ltd(600522) ], [ Guangdong Shenling Environmental Systems Co.Ltd(301018) ], [ Shenzhen Kstar Science & Technology Co.Ltd(002518) ]; On the other hand, the Internet of things, industrial Internet, Beidou and other new infrastructure enable the digital grid. It is suggested to pay attention to the Internet of things module [ Quectel Wireless Solutions Co.Ltd(603236) ], industrial Internet Gateway [ Beijing Inhand Networks Technology Co.Ltd(688080) ], Beidou application terminal [ Shanghai Huace Navigation Technology Ltd(300627) ], etc.
Key industry data tracking: 1) operator data: according to the data of the Ministry of industry and information technology, the total number of mobile phone users in China reached 1.651 billion in February 2022, including 384 million 5g mobile phone users, a net increase of 29.05 million over the end of the previous year and a penetration rate of 23.3%; 2) 5g base stations: as of February 2022, the total number of 5g base stations has reached 1.506 million; 3) Cloud computing and chip manufacturers: 21q4, bat capital expenditure totaled 25.2 billion yuan (year-on-year + 51%, month on month + 12%); 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 dcg21q4’s revenue increased by + 20% year-on-year to US $7.3 billion; Amd computing and graphics 21q4 achieved revenue of USD 2.6 billion (YoY + 32%, mom + 8%).
Market review: this week, the communication (Shenwan) index fell by 1.20%, and the Shanghai and Shenzhen 300 index fell by 1.98%. The performance of the sector is stronger than the market, with a relative return of 0.78%, ranking 12th in the Shenwan industry. There are 126 companies in the communication stock pool we built, with an average rise or fall of – 1.27% this week. Among all sub sectors, Beidou and 5g led the rise, with an increase of 1.56% and 1.03% respectively.
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.
