This week, the electronics (Shenwan) sector index rose or fell by – 3.1%, ranking 27th in the rise and fall of Shenwan industry. The electronics industry showed a general downward trend this week. The performance of analog chip leader Sg Micro Corp(300661) is relatively stable.
After the adjustment since the beginning of 2022, the overall PE of the electronics industry (shenwanyi class) decreased to 25.920 on Friday and about 40 times in March 21. PE in the electronics industry is at the quantile of 14.8% in recent five years, and the electronics industry index is at the quantile of 62.5% in recent five years. From the perspective of PE, this round of market has been at the bottom of history, and the undervalued target has stronger rebound energy. From a fundamental perspective, the overall roe of the electronics industry is in an upward channel. After reaching a growth rate of 19.2% at the end of 2021, the growth rate slowed down in 2022. Last Friday, the roe increased by about 2.3% compared with the same period last year. With the valuation at an all-time low and the fundamentals stable, the turnover rate fell to an average daily rate of 1% last week, a low of nearly a year. We need to wait for the improvement of market confidence to digest the external factors causing the tightening of risk appetite, such as the conflict between Russia and Ukraine, the Fed’s interest rate hike and other risks.
The 5g investment cycle is coming to an end, and the data center is favored by capital. China’s three major operators said at the annual performance briefing that 5g investment will tend to be stable, the focus of investment will shift to cloud services and data centers, and the capital expenditure of operators is not expected to increase significantly. We compared the capital expenditure of the world’s major cloud service providers and China Telecom Corporation Limited(601728) operators; Shipment growth of servers and base stations; As well as the growth of global data traffic, it is considered that the base station market is the stock market, and the cycle of technology iteration and product upgrading brings new opportunities to the market. At the peak of 5g construction cycle, the data center market is more growing. Under the policy guidance of counting from the east to the West and the trend of transfer investment of operators, we are optimistic about the industrial chain opportunities of data centers. It is suggested to pay attention to the core targets of data centers such as Gigadevice Semiconductor (Beijing) Inc(603986) , Inspur Electronic Information Industry Co.Ltd(000977) , Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) .
Focus on suggestions: it’s the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, and the targets of performance growth: Caihong Display Devices Co.Ltd(600707) 03 \ , Gigadevice Semiconductor (Beijing) Inc(603986) , Shenzhen Kinwong Electronic Co.Ltd(603228) , etc.
Risk warning: risk of deterioration of the international situation, unexpected epidemic development and liquidity risk
