Important trends in the industry this week:
Shandong offshore wind power is clearly replenished and continues to be firmly optimistic about the investment opportunities of offshore wind and submarine cable
Shandong has made it clear that the offshore wind power projects of the 14th five year plan, which will be completed and connected to the grid in 20222024, will be subsidized according to the standards of 800 yuan, 500 yuan and 300 yuan per kilowatt respectively, and the subsidy scale will not exceed 2 million kilowatts, 3.4 million kilowatts and 1.6 million kilowatts respectively. Offshore wind power projects that are completed and connected to the grid before the end of 2023 are exempted from the construction or leasing of energy storage facilities. We believe that Shandong is the second province after Guangdong to clarify the sea breeze and land compensation. The overall goal of sea breeze construction is firm and the pace of promotion is accelerated. From 2022 to 2024, the installed capacity of the subsidy amount is 7gw. If the installed capacity target of about 7gw is achieved in recent three years, the installed capacity of Shandong Haifeng in the 14th five year plan is expected to reach 10GW. The business continuity and certainty of Haifeng industry are getting higher and higher. We are firmly optimistic about investment opportunities in submarine cable links with high threshold, good pattern and undervalued value.
Counterpoint: Internet of things 5g and 4gcat1 meet explosive growth
According to the latest research of counterpoint, the global market revenue of cellular Internet of things module in 2021q4 increased by 58% year-on-year, of which 5g module contributed nearly a quarter of the market revenue of cellular Internet of things module. From a regional perspective, the Chinese market accounts for the highest proportion, contributing more than 40% of revenue; India is the fastest growing mobile Internet of things module market, with a year-on-year growth rate of 154%. In terms of product technology, 5g is the fastest growing technology (with a year-on-year increase of 324%), followed by 4gcat1 (with a year-on-year increase of 105%). Router / CPE, PC and industrial applications are the main applications of 5g.
Investment view this week:
In the short term, focus on the subject of high growth & low value & policy benefits (digital economy, East West calculation, etc.) in the first quarter report. Looking forward to the whole year, focus on the high boom track and the low / undervalued value + reversal logic target. Focus on: communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and other subdivided fields. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. Attention: optical fiber cable / submarine cable, Gigabit broadband, Internet of things / smart car, military communication, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and optical cable starts), Hengtong Optic-Electric Co.Ltd(600487) (dual drive of ocean and optical fiber and optical cable). It is suggested to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise at the same time), Jiangsu Etern Company Limited(600105) (recovery of optical communication and incremental space of automobile harness);
3. Light module & light device: light module & light device: 3 Zuming Bean Products Co.Ltd(003030) 30 \ ;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / networking of vehicles: what's to be: to highlight: what's to recommend to highlight: Skyworth Digital Co.Ltd(000810) , Shenzhen Neoway Technology Co.Ltd(688159) , Cubic Sensor And Instrument Co.Ltd(688665) (mechanical combined coverage); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendation: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix); It is suggested to pay attention to: Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators (undervalued, high dividend): China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the ocean and new energy sectors have full potential, and the business cycle of optical fiber and cable has started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: a key recommendation from IDC: a key recommendation from the IDC: to focus on: Hongda Xingye Co.Ltd(002002) 335 etc;
IV. military communication & Beidou: communication is a serious weakness in the field of national defense informatization, and the penetration rate of ultrashort wave and area width can be improved. It is suggested to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ;
V. digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) etc.
Risk warning: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the speed of downstream application recommendation is lower than expected, and the risk of trade war is uncertain.
