Recently, affected by the epidemic, the market risk sentiment is relatively strong. In this scenario, the triple attributes of “low debt” + “high dividend” + “required consumption” are superimposed, and the operator has become a high-quality asset haven. At the same time, with the reversal of the bottom of the operator’s C-end business in 2021, the b-end business continues to develop at a high speed, and the scale of high value-added cloud business increases rapidly. In the medium and long term, it is expected to realize the continuous repair of the valuation. In addition to operators, emerging industrial chains such as central bank digital currency, which have been significantly promoted by policies recently, are also expected to become a new investment direction. In addition, with the acceleration of “counting from the east to the west”, we believe that operators will further strengthen the construction and upgrading of backbone networks, which will benefit Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) and other head optical fiber and cable enterprises. Investors are advised to pay active attention to relevant investment opportunities.
Core recommendations:
\u3000\u30001. Telecom operators: China Mobile 600941, China Telecom Corporation Limited(601728) China Telecom Corporation Limited(601728)
\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)
Telecom operators: a safe haven under the epidemic. Recently, due to the repeated impact of the epidemic, the operating rate and supply chain, the capital market has some concerns about the annual performance and product demand of various companies, and the market risk aversion is relatively strong. In this scenario, the triple attributes of “low debt” + “high dividend” + “required consumption” are superimposed, and the operator has become a high-quality asset haven. At the same time, from the perspective of fundamentals, the C-end business of operators hit the bottom and reversed in 2021, confirming the inflection point, the b-end business continued to develop at a high speed, and the scale of high value-added cloud business increased rapidly. In the medium and long term, it is expected to realize the continuous repair of the valuation.
China Telecom Corporation Limited(601728) 2022 centralized procurement of trunk optical cables: Changfei, Fenghuo and other manufacturers are shortlisted China Telecom Corporation Limited(601728) 2022 trunk optical cable construction project (the first batch) optical cable and supporting procurement project results were released, g.654e trunk optical cable standard package Changfei, Fenghuo and Zhongtian were shortlisted, g.652d trunk optical cable Hengtong Optic-Electric Co.Ltd(600487) was shortlisted, and optical cable joint box standard package Jiangsu Zhongtian Technology Co.Ltd(600522) was shortlisted.
IDC: China’s Internet of things scenario application drives the rapid development of cellular communication module market. According to IDC report, in recent years, with the establishment of Nb IOT and 5g networks, many Internet of things applications based on cellular networks, such as smart city, Internet of vehicles, smart retail, have developed rapidly. As the key module for the equipment to realize IOT communication, cellular communication module is also developing rapidly driven by downstream applications. Chinese manufacturers are becoming more and more important in the module market. Huawei Hisilicon, Ziguang zhanrui, Aojie technology, mobile core communication, core wing technology and other Chinese manufacturers are using 4gcat 1 and Nb IOT’s rapid development opportunities and quickly seize the market. In the field of communication modules, Chinese manufacturers represented by Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , rihai communication, Meig Smart Technology Co.Ltd(002881) etc. have risen rapidly with the advantages of technology and cost.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
