The market value of fund positions in 2021q4 communication industry accounted for 1.30%, ranking 19th in the industry, with a month on month increase of + 0.49pp, ranking 7th in the industry We judge that the low and high rhythm before and after 5g construction has led to the upward demand of the industrial chain and the prosperity of the cloud computing industry, which has promoted the stable and upward demand of the industry as a whole, and the company’s performance has steadily improved. At the same time, the undervalued value has been superimposed to open up the growth space, and the fund position proportion of 2021q4 industry has rebounded at the bottom. We judge that the current allocation proportion and over allocation proportion are still low. With the improvement of the operation of the industry, the position proportion is expected to continue to increase.
2021q4 Zte Corporation(000063) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) ranked among the top three stocks held by funds in the communication sector.
Among them, Zte Corporation(000063) (holding market value of RMB 13.372 billion, a month on month + 66%), Yealink Network Technology Co.Ltd(300628) (holding market value of RMB 11.763 billion, a month on month + 104%), Jiangsu Zhongtian Technology Co.Ltd(600522) (holding market value of RMB 10.471 billion, a month on month + 3523%).
Meanwhile, the total stock market value of the top ten stocks accounted for 65.51% of the total market value of the communication sector held by the fund.
2021q4 Cubic Sensor And Instrument Co.Ltd(688665) , Yealink Network Technology Co.Ltd(300628) , Shenzhen Topband Co.Ltd(002139) , the proportion of fund positions in circulating shares ranked among the top three.
Including Cubic Sensor And Instrument Co.Ltd(688665) 3622% (+ 12.93pp), Yealink Network Technology Co.Ltd(300628) 2995% (mom + 15.24pp), Shenzhen Topband Co.Ltd(002139) 2898% (mom + 25.01pp).
2021q4 China Telecom Corporation Limited(601728) , Zte Corporation(000063) , and the number of shareholding fund institutions of China Mobile ranked among the top three. Of which China Telecom Corporation Limited(601728) are 1398, holding 612 million shares (mom + 700.71%) Zte Corporation(000063) is 686, holding 399 million shares (mom + 64.08%); China Mobile has 642 companies, holding 541192 million shares.
As of March 31, the land stock connect of Zhongji Innolight Co.Ltd(300308) , Sangfor Technologies Inc(300454) , Foxconn Industrial Internet Co.Ltd(601138) (the sum of the number of shares held by Shanghai Stock connect and Shenzhen Stock connect) accounted for the top three free circulating share capital, accounting for 16.62%, 12.28% and 11.81% respectively.
Investment advice. We judge that the communication industry is in the process of “old and new” changes in 2022. The development of the industry is upward, the valuation of head enterprises is at the bottom of history, and we are optimistic about the overall potential opportunities of the industry. 1. Booming demand of cloud computing industry chain – with the expected rapid growth of global data center capital expenditure in 2022 and Chinese operators’ increasing investment in Network & cloud business, key companies in the industry chain are expected to continue to benefit, including: 1) equipment side: it is recommended to focus on Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Zte Corporation(000063) , Hangzhou Dptech Technologies Co.Ltd(300768) , China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) , etc. 2) Upstream core devices: optical devices – it is recommended to focus on Huagong Tech Company Limited(000988) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Shenzhen Jpt Opto-Electronics Co.Ltd(688025) , Zhongji Innolight Co.Ltd(300308) , Accelink Technologies Co.Ltd(002281) , Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) , Han’S Laser Technology Industry Group Co.Ltd(002008) , etc; Optical fiber cable – it is suggested to focus on: Jiangsu Zhongtian Technology Co.Ltd(600522) , focus on Hengtong Optic-Electric Co.Ltd(600487) ; PCB – it is recommended to pay attention to Wus Printed Circuit (Kunshan) Co.Ltd(002463) , Shennan Circuits Co.Ltd(002916) , Shengyi Electronics Co.Ltd(688183) , etc. 2. Industry digitization continues to accelerate – 1) industrial Internet: China’s industrial Internet has developed at the right time, location and people. Grasp the dividend of industrial upgrading, and the core intelligent equipment and industrial Internet platform will usher in rapid development opportunities. It is suggested to focus on: Zhejiang Supcon Technology Co.Ltd(688777) , it is suggested to focus on Opt Machine Vision Tech Co.Ltd(688686) , etc. 2) Aiot: the demand of the aiot industry continues to be high, the valuation is not high, and the potential energy of the head target is stronger. It is suggested to focus on: Fibocom Wireless Inc(300638) , Cubic Sensor And Instrument Co.Ltd(688665) , Shanghai Huace Navigation Technology Ltd(300627) , Yealink Network Technology Co.Ltd(300628) , Quectel Wireless Solutions Co.Ltd(603236) , focus on: Queclink Wireless Solutions Co.Ltd(300590) , Qingdao Eastsoft Communication Technology Co.Ltd(300183) , etc. 3. The rise of communication chips has benefited from the wave of localization – communication chip companies have continuously increased R & D investment in recent years, improved product autonomy and achieved leading layout in key fields. It is suggested to focus on: Advanced Fiber Resources (Zhuhai) Ltd(300620) (layout of thin-film lithium niobate technology, which is expected to lead the next generation of optical devices), Hebei Sinopack Electronic Technology Co.Ltd(003031) (gallium nitride business is leading in China and has broad growth space). At the same time, it is suggested to pay attention to China’s baseband communication chips, access end communication chips Optical chip related companies.
Risk warning. Overseas epidemic situation and the impact of Sino US science and technology friction; The progress of 5g expansion investment is lower than expected.
Compliance tips. According to the disclosure of the company in the half year of 2021, Haitong Securities Company Limited(600837) self operated holding [ Cubic Sensor And Instrument Co.Ltd(688665) Cubic Sensor And Instrument Co.Ltd(688665) ] exceeds 1% of the total share capital.
