Recently, the three major operators have successively disclosed the annual report of 2021. The three operators achieved good performance growth in 2021. From the perspective of C-terminal, thanks to the slowdown in the pace of speed-up and decline, the cultivation of traffic consumption habits and the improvement of 5g penetration, the C-terminal business of operators has been strongly reversed, and the revenue, ARPU value and the number of users of the three mobile services all have obvious inflection points. From the perspective of b-end business, with the continuous promotion of the digital transformation of the three operators, under the background of building “Digital China”, the rapid growth of b-end business has become the main driving force for the return of operators’ revenue growth. It is worth noting that the government enterprise market business of operators is upgrading and transforming from end to cloud. The most obvious change is the rapid increase of cloud business revenue of operators, and the revenue of Telecom cloud and mobile cloud has doubled. We believe that in the current global interest rate hike cycle and market turmoil environment, operators with high cash flow, low debt and high dividend are expected to usher in better investment opportunities, and investors are advised to pay active attention.
Core recommendations:
\u3000\u30001. China Mobile , operator
\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) , Jiangsu Zhongtian Technology Co.Ltd(600522) Jiangsu Zhongtian Technology Co.Ltd(600522) , Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628)
The three major operators released the annual report of 2021. Recently, the three major operators have successively released annual reports for 2021. China Mobile’s revenue in 2021 was 848.3 billion yuan, a year-on-year increase of 10.4%, and the net profit attributable to the parent company was 115.9 billion yuan, a year-on-year increase of 7.5% 6 Lvjing Holding Co.Ltd(000502) 021 revenue 327854 million yuan, an increase of 7.9%, net profit attributable to parent company 6.305 billion yuan, an increase of 14.2% China Telecom Corporation Limited(601728) 2021 operating revenue 434.2 billion yuan, an increase of 11.3%. The net profit attributable to the parent company was 25.952 billion yuan, a year-on-year increase of 24.4%. In terms of capital expenditure, China Mobile’s capital expenditure in 2021 was 183.6 billion yuan, of which 5g capital expenditure was 114 billion yuan, 6 Chang Jiang Shipping Group Phoenix Co.Ltd(000520) 21 capital expenditure was 69 billion yuan, China Telecom Corporation Limited(601728) 2021 capital expenditure was 86.7 billion yuan, of which 5g capital expenditure was 38 billion yuan, accounting for 43.8%. The capital expenditure of mobile and Telecom in 2022 basically increased slightly compared with that in 2021, and 5g capital expenditure decreased to a certain extent. Correspondingly, in 2022, the two operators will invest more money in b-end business, mainly including IDC room investment and server investment
Canalys predicts that by 2026, the Chinese mainland cloud infrastructure market will reach US $85 billion. Canalys data show that in 2021, the Chinese mainland cloud infrastructure services market grew by 45% to $27 billion 400 million. In the fourth quarter of 2021, it increased by 33% year-on-year to reach US $7.7 billion. By 2026, the scale of cloud infrastructure market in Chinese mainland will reach 85 billion US dollars, and the five year compound annual growth rate will be 25%. Among them, Alibaba cloud remains the leader, ranking first in the cloud market in 2021; Huawei cloud and Tencent cloud ranked second and third respectively; Baidu AI cloud ranks fourth.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
