Investment summary:
Talk every Monday:
Optical fiber broadband is an important part of communication network. The state promotes the dual Gigabit strategy. The state promotes the coordinated development of dual Gigabit. At present, the construction of 5g wireless communication is in full swing, and the optical fiber broadband network has entered the F5G era. In recent years, China’s optical fiber broadband development has continued to maintain a global leading position. By November 2021, the total number of fixed Internet broadband access users of the three major operators had reached 535 million, a net increase of 51.85 million over the end of the previous year. In the future, the optical fiber broadband network will be further extended downward. Families will extend from optical fiber to household to optical fiber to each room, industrial office parks will extend from optical fiber to building to optical fiber to desktop, and industrial manufacturing factories will extend from optical fiber to factory to optical fiber to each machine, providing ubiquitous optical connection for “new infrastructure”.
The three operators started the upgrading of Gigabit broadband, and the related industries ushered in rapid development. The three major operators have launched the upgrade of optical fiber broadband network from GPON / EPON to 10gpon Gigabit, and the procurement scale is more than one million units. By November 2021, there were 33.86 million fixed Internet broadband access users with access rate of 1000Mbps and above, a net increase of 27.46 million over the end of the previous year, a year-on-year increase of 475.7%.
FTTR has the advantages of high bandwidth, high reliability and easy management. In FTTH networking, the optical signal is terminated at the optical cat end. Under the FTTR architecture, the end of the optical network further sinks to each edge ont, and the FTTR plays the role of “connecting the preceding and the following” from the optical cat, extending the light in and out to each room.
Diversified business models, multi-party collaborative efforts to build industrial ecology and boost the construction of “new infrastructure” of home network. The business model is divided into front loading and back loading according to the different delivery and deployment time. The “front loading” business model is conducive to achieving win-win results. Through this cooperation mode, home decoration companies can obtain commissions and improve brand value, real estate developers can highlight the scientific and technological nature of the brand, and operators can lock in target users. At present, more than 60 provincial and municipal communication operators have used FTTR, and 15 decoration enterprises have realized strategic cooperation with operators.
Market review:
This week (2022.01.04-2022.01.07), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by – 1.65%, – 3.46%, – 6.8% respectively, and the Shenwan communication index increased by – 2.19%, ranking 17th among Shenwan’s 28 primary industries.
Performance of individual stocks in the communication sector this week:
The top five stock price increases are: * ST bangxun, Guangdong Tecsun Science & Technology Co.Ltd(002908) , Chutian Dragon Co.Ltd(003040) , SHENSANGDA a, Shenzhen Neoway Technology Co.Ltd(688159) the top five stock price decreases are: Wenzhou Yihua Connector Co.Ltd(002897) , Shanghai Huace Navigation Technology Ltd(300627) , Hengxin Shambala Culture Co.Ltd(300081) , Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) investment strategy: (1) 5g network coverage continues to improve, the number of 5g base stations exceeds one million, and 5g equipment supplier leader continues to be recommended: Zte Corporation(000063) ; (2) The increase in the penetration rate of 5g package users drives the Arup value of operators. Operators give up the price war and improve user stickiness by providing more high-quality and differentiated services. It is suggested to pay attention to: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; (3) The development of the Internet of things industry has entered the fast lane. It is recommended to focus on the investment opportunities of vehicle communication modules, and it is recommended to pay attention to Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) ; (4) Under the background of double carbon, green energy conservation has become the main theme, and the precision temperature control faucet is recommended: Shenzhen Envicool Technology Co.Ltd(002837) .
Risk tip: the development of 5g is not as expected, the Sino US trade friction has further escalated, and the epidemic has further spread.
