This week, the CSI 300 fell by 1.85% and the gem fell by 2.82%, of which the communication sector fell by 1.15%, and the price performance of the sector was stronger than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 1.77%; In the same period, the turnover rate of 300 constituent stocks in Shanghai and Shenzhen was 0.39%, and the overall activity of the sector was stronger than that of the market. In terms of individual stocks in the communications sector, the top five gainers this week are: Wuhan Fingu Electronic Technology Co.Ltd(002194) (37.26%), Gome Telecom Equipment Co.Ltd(600898) (10.98%), Suzhou New Sea Union Telecom Technology Co.Ltd(002089) (10.80%), Jilin Jlu Communication Design Institute Co.Ltd(300597) (8.58%), Hengxin Shambala Culture Co.Ltd(300081) (8.51%); The companies with the top five declines are: Leon Technology Co.Ltd(300603) (- 17.10%), Zhong Fu Tong Group Co.Ltd(300560) (- 13.97%), Hengbao Co.Ltd(002104) (- 12.85%), Routon Electronic Co.Ltd(600355) (- 12.44%), Jushri Technologies Inc(300762) (- 12.85%).
The steady growth of operators has enabled the development of China's digital economy. The revenue growth of the three major operators maintained upward. China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) respectively achieved revenue of 848258 billion yuan / 434159 billion yuan / 327854 billion yuan, with a year-on-year increase of 10.44% / 11.3% / 7.9% respectively. The annual net profit was 115937 billion yuan / 25.952 billion yuan / 6.305 billion yuan, with a year-on-year increase of 7.51% / 24.4% / 10.82%, and the net interest rate was 13.67% / 5.98% / 1.92% respectively. In terms of business, the growth rate of China Mobile's personal market has changed from negative to positive, and the home market has maintained a growth of about 20% The mobile and fixed network business revenue of China United Network Communications Limited(600050) and China Telecom Corporation Limited(601728) maintained steady growth. In addition to the basic communication business, the three major operators have accelerated the layout of Internet business in government enterprises and industries, which has become an important growth engine for operators. China Mobile's government and enterprise business achieved a revenue of 137136 billion yuan, a year-on-year increase of 21.4%, accounting for 18.3% of the revenue The company's business revenue is expected to reach more than 24.8 billion yuan, accounting for 3.8% of the revenue in the future China United Network Communications Limited(600050) industrial Internet achieved revenue of 54.8 billion yuan, a year-on-year increase of 28%, accounting for 16.71% of revenue. Both mobile cloud and Tianyi cloud have doubled, with the growth rate of mobile cloud being 114% and Tianyi cloud being 102%. Information and communication is the backbone of the construction of digital economy. It is expected to continue to promote the development of operators to high quality in the future.
China's 5g user penetration exceeded 40%, and the mobile ARPU value stabilized and rebounded. China's 5g users are growing rapidly. According to the announcements of the three major operators, by the end of 2021, the number of users of China Mobile, China Telecom Corporation Limited(601728) , 6 Hainan Jingliang Holdings Co.Ltd(000505) g has reached 387 million / 188 million / 155 million respectively, totaling 730 million. China's 5g user penetration has also increased from 20% at the end of 2020 to 44%, of which the 5g user penetration of China Mobile is 40.4%, that of China Telecom Corporation Limited(601728) is 50.54%, and that of China United Network Communications Limited(600050) is 48.9%. In terms of ARPU value, the speed-up and fee reduction have changed from comprehensive to specific users, superimposed with the continuous improvement of 5g user penetration and other factors, and the mobile ARPU value of the three major operators has stabilized and rebounded. In 2021, the ARPU values of China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) mobile were 48.8 yuan / 45 yuan / 43.9 yuan respectively, with a year-on-year increase of + 3% / + 2% / + 4.3% respectively. Among them, the ARPU values of China Mobile and China Telecom Corporation Limited(601728) 5garpu were 82.8 yuan / 53.3 yuan respectively, a decrease of 10% and 19% respectively, which was mainly due to the fact that 5g was in the period of large-scale promotion and increased marketing incentives. In terms of fixed network, the household broadband users of the three major operators have increased, with a total of 59 million new users, reaching 500 million users. In the next few years, with the construction of China's dual Gigabit optical network, the fixed network ARPU value of the three operators is expected to rise steadily. In 2021, the fixed network ARPU values of China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) and China United Network Communications Limited(600050) are 39.8 yuan / 45.9 yuan / 41.3 yuan respectively, with a year-on-year increase of + 5.27% / + 3.4% / - 0.48% respectively.
The capital expenditure is inclined to the computing power network and actively attaches importance to the return to shareholders. In 2021, the capital expenditure of the three operators totaled 339323 billion yuan, with a year-on-year increase of 1.9%, of which the capital expenditure of China Mobile, China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) were 183.6 billion yuan, 86.723 billion yuan and 69 billion yuan respectively, with a year-on-year increase of 1.66%, 2.27% and 2.07% respectively. China Mobile and China Telecom Corporation Limited(601728) invested 114 billion yuan and 39.672 billion yuan in 5g respectively, with a year-on-year increase of 11.22% and 1.26% respectively. 670000 new 5g base stations were added in China throughout the year, realizing the full coverage of cities, counties and urban areas across the country. In 2022, the capital expenditure budgets of China Mobile and China Telecom Corporation Limited(601728) increased by 0.9% and 7.24% respectively year-on-year, and the capital expenditure of 5g decreased year-on-year. The investment budgets of China Mobile and China Telecom Corporation Limited(601728) 5g were 110 billion yuan and 34.038 billion yuan respectively, and Shanghai Pudong Development Bank Co.Ltd(600000) base stations are expected to be added throughout the year. With the support of policies such as Eastern digital computing and Western computing, capital expenditure will tilt to the fields of computing power network and industrial Internet. In terms of dividends and dividends, China Mobile's dividend payout rate will be 60% in 2021, and the dividend will reach about 70 billion yuan. It plans to increase the dividend payout rate by more than 70% in the next three years China Telecom Corporation Limited(601728) dividend payout ratio increased from 40% to 60%, and will continue to increase to 70% in the next three years. It is decided to pay interim dividends from 2022 China United Network Communications Limited(600050) dividend payout ratio increased to 42%.
Investment suggestion: pay attention to telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; Data center: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) , etc; Equipment manufacturer: Unisplendour Corporation Limited(000938) (Xinhua III), Zte Corporation(000063) , Fujian Star-Net Communication Co.Ltd(002396) ; IDC HVAC equipment: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) , Yimikang Tech.Group.Co.Ltd(300249) , etc; Internet of things and car Networking: the Internet of things and networking of things and car Networking: the Internet of things and car Networking: the following: Fibocom Wireless Inc(300638) etc; On board connector: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) ; Intelligent controller: Shenzhen Topband Co.Ltd(002139) , Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Longood Intelligent Electric Co.Ltd(300543) , Shenzhen Bestek Technology Co.Ltd(300822) ; Optical devices and optical modules: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; Military communications and satellite applications: Jushri Technologies Inc(300762) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Shanghai Huace Navigation Technology Ltd(300627) , Chengdu Corpro Technology Co.Ltd(300101) , Guangzhou Haige Communications Group Incorporated Company(002465) , China Satellite Communications Co.Ltd(601698) , etc.
Risk warning events: 5g investment is less than expected, market competition intensifies, overseas trade disputes, market systemic risks, etc
