Industry core view:
The last trading week was the 13th trading week of A-Shares in 2022. The CSI 300 index fell 1.06%, and 8 of the 31 industries in Shenwan class rose and 23 fell. The overall trend of the communication industry was weaker than the market last week, down 3.36%, ranking 24th and No. 1 in the TMT industry. The focus of the cloud computing industry is to maintain the competitiveness of the cloud computing industry, especially the ability to continuously compete with the cloud computing industry in terms of product R & D and service delivery. Public cloud is a market with strong scale effect. After the scale is formed, it can take the lead in terms of cost, efficiency and product technology capability, which is also one of the reasons why the cloud computing market continues to focus on the head. In recent years, operators' investment in cloud testing has increased year by year. Whether it is the purpose of raising funds for China Telecom Corporation Limited(601728) and China Mobile's listing back to a, or the capital expenditure plans of the three operators in 2022, they are gradually inclined to the cloud. With the continuous iteration of operators in core technologies, products and services, it is recommended to continue to pay attention to the value realization of operators in cloud measurement.
Key investment points:
One week industry news: (1) o-ran alliance plans to pass the first batch of standards in ETSI this year; (2) Win another heavyweight evaluation and certification, and hand over the "hard core report card" of mobile cloud service capability!; (3) The three operators collectively broke through: China's public cloud market is surging; (4) Omdia predicts that the cable access equipment market will peak in the short term; (5) Dell'Oro report: Global Telecom capital expenditure increased by 9% year-on-year in 2021 and will gradually slow down after 2023; (6) In 2021, Q4 global cellular Internet of things module revenue increased by 58% year-on-year; 5g and 4gcat1 modules grew the fastest
Investment suggestions:
With the gradual advancement of 5g construction and the continuous high growth of cloud computing construction scale, the fundamentals of the communication industry may continue to improve in 2022. In terms of 5g construction, with the implementation of the "14th five year plan" for the development of information and communication industry, the goal of 5g construction in the future is clear. In the next three to five years, 5g construction will also maintain a stable pace of construction investment. However, with the gradual progress of construction, the downstream supporting applications will gradually mature, thus driving the relevant construction of 5g again.
We suggest paying attention to four investment tracks in the communication industry: (1) operators & equipment manufacturers: 5g construction continues to promote, and the prosperity of traditional communication services is rising. With the expansion of 5g construction, the performance of communication construction and operation and maintenance industrial chain has increased significantly, and the cloud network construction of data center and 5g2b business also opens new growth space for operators & communication equipment manufacturers. (2) Optical module: with a new round of demand growth and the promotion of optical module technology, the industry is expected to usher in a new round of double clicking in 2022. It is suggested to pay attention to the leading optical module enterprises on the digital communication side. (3) Internet of things module: in the next two years, the Internet of vehicles module will still be one of the main directions of the future market growth of the Internet of things module. It is suggested to pay attention to the leading enterprises with deep layout in the Internet of vehicles industrial chain. (4) Temperature control: it is suggested to pay attention to some leading temperature control enterprises that have the ability to transplant the original data center liquid cooling technology to the energy storage system.
Risk factors: increased trade friction, China's 5g construction does not meet expectations, the slowdown of global cloud computing construction, and the price fluctuation of upstream raw materials.
