Industry highlights tracking: the national development and Reform Commission takes the lead in the development of Beidou industry and promotes the large-scale application of Beidou industry. The national development and Reform Commission further elaborated on promoting the development of Beidou industry in the 14th five year plan, promoting the large-scale application of Beidou, as well as the development of marketization, industrialization and internationalization. Beidou industrial chain continued to benefit from policies and paid increasing attention to policies. Benefiting from this, Beidou government procurement continues to advance and Beidou high-precision applications go deep into the mass market. The industrial chain is expected to continue to benefit. It is suggested to pay attention to Beidou application terminals, such as [ Shanghai Huace Navigation Technology Ltd(300627) ].
The construction plan of Ningxia hub of the national integrated computing network was released. The construction plan of Ningxia hub has been released, and the steady progress of the “counting from the east to the west” project after its full launch will help to improve the national data center industry, integrate the layout from a national perspective, optimize the allocation of resources and improve the efficiency of resource use. In addition, in the future, green and low-carbon will become the focus of the development of cloud based construction industries such as data centers. It is suggested to pay attention to IDC enterprises with leading development capacity of low-carbon and energy-saving data centers, such as [ Guangdong Aofei Data Technology Co.Ltd(300738) ] and [universal data], leading temperature control enterprises such as [ Guangdong Shenling Environmental Systems Co.Ltd(301018) ], and power supply enterprises such as [ Shenzhen Kstar Science & Technology Co.Ltd(002518) ].
Key industry data tracking: 1) operator data: according to the data of the Ministry of industry and information technology, the total number of mobile phone users in China reached 1.651 billion in February 2022, including 384 million 5g mobile phone users, a net increase of 29.05 million over the end of the previous year and a penetration rate of 23.3%; 2) 5g base stations: as of February 2022, the total number of 5g base stations has reached 1.506 million; 3) Cloud computing and chip manufacturers: 21q4, bat capital expenditure totaled 25.2 billion yuan (year-on-year + 51%, month on month + 12%); In 21q4, the capital expenditure of the three major overseas cloud manufacturers and meta totaled US $36.553 billion (year-on-year + 26%, month on month + 11.8%). Xinhua’s revenue in March 2022 was NT $433 million (year-on-year + 66.3%, month on month – 29.6%); Intel dcg21q4’s revenue increased by + 20% year-on-year to US $7.3 billion; Amd computing and graphics 21q4 achieved a revenue of $2.6 billion (year-on-year + 32%, month on month + 8%).
Market review: in the past two weeks, the communication (Shenwan) index fell by 4.04%, and the Shanghai and Shenzhen 300 index rose by 1.98%. The performance of the sector is weaker than the market, with a relative return of – 6.02%, ranking 27th in the Shenwan industry. There are 147 companies in our communications stock pool, with an average rise or fall of – 5.51% in the past two weeks.
Investment suggestion: in April, focus on the direction of operators and industrial digitization. The fundamentals of operators continue to recover and improve, with valuation repair opportunities, focusing on China Mobile. In the direction of industrial digitization, we should focus on the track with high flexibility: first, the direction of policy overweight, with more catalysts, such as the Internet of things, Beidou and industrial Internet. Specifically, there are Internet of things modules (focusing on Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ), IOT chip ( Rockchip Electronics Co.Ltd(603893) ), industrial Internet gateway ( Beijing Inhand Networks Technology Co.Ltd(688080) , 3Onedata Co.Ltd(688618) ), Beidou application terminal ( Shanghai Huace Navigation Technology Ltd(300627) ). Second, the track combined with new energy and intelligent vehicles has high certainty and high valuation flexibility. Focus on “communication + energy” ( Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ) and “communication + automobile” ( Suzhou Recodeal Interconnect System Co.Ltd(688800) ).
The key recommended combinations in April 2022 are Quectel Wireless Solutions Co.Ltd(603236) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , China Mobile and Suzhou Recodeal Interconnect System Co.Ltd(688800) .
Risk tip: the global epidemic intensifies the risk, 5g investment and construction is less than expected, Sino US trade friction and other external environmental changes.
