Core conclusion
Review of the communication industry this week (April 11, 2022-april 15, 2022):
(1) the communication industry fell this week: this week, the Shanghai composite index was – 1.25%, the Shenzhen composite index was – 2.60%, the gem index was – 4.26%, and the communication industry index was – 5.67%. Among the 106 stocks in the communication industry, the number of rising and callback stocks were 7 and 98 respectively, with a median rise and fall of – 6.67%.
(2) the decline of server / switch sector narrowed by 3.53pct to -0.67%. In terms of industry, the national 14th five year plan clearly puts forward the development goal of “Digital China”. The server industry is the basic industry supporting digital China, which has important overall significance. In addition, China’s “digital computing in the East and digital computing in the west” currently drives an investment of 190 billion yuan. As core revenue devices, servers and switches are expected to continue to grow on the demand side Inspur Electronic Information Industry Co.Ltd(000977) ( Inspur Electronic Information Industry Co.Ltd(000977) . SZ) performed relatively well.
In the national unified market system, digital infrastructure construction is expected to benefit first:
On April 10, the “opinions on accelerating the construction of a national unified market” was officially released. The core contents include two sets of unified market systems, two sets of unified market forms and one set of high-standard “market facilities”. The specific contents involve the standard systems in 5g, Internet of things and other fields. With the introduction of this opinion, the future digital market infrastructure may present a development path of “construction first and then networking”; The digital market infrastructure may form the scope of “pilot and coverage”, and the national industrial Internet identification analysis system will be gradually expanded. We believe that when the national system is expected to be unified, 5g industrial applications and the vertical of the Internet of things should be expected to give priority to large-scale volume, driving the bottom reversal of the communication industry.
Investment suggestions:
(1) the improvement of data transmission rate will be the main line before the large-scale popularization of 5g application. Under the strong demand of China’s enterprises in 2022, the number of 100g modules and the upgrading rate of 100g modules are expected to give priority to the arrival of China’s enterprises in 2022. Suggested attention: Zhongji Innolight Co.Ltd(300308) ( Zhongji Innolight Co.Ltd(300308) . SZ).
(2) the Internet of things / Internet of things will be one of the main themes of 5g era. The revenue scale of Chinese enterprises’ Internet of things / Internet of vehicles module ranks first in the world. It is expected that with the gradual emergence of China’s anti epidemic effect, the performance of relevant enterprises is expected to improve marginally with the gradual promotion of resumption of production and work. Under the condition of upgrading + high demand, companies with global multi industry and Multi Country qualifications and all product and all channel layout are expected to benefit first. It is suggested to pay attention to: Quectel Wireless Solutions Co.Ltd(603236) ( Quectel Wireless Solutions Co.Ltd(603236) . SH), Meig Smart Technology Co.Ltd(002881) ( Meig Smart Technology Co.Ltd(002881) . SZ), Beijing Inhand Networks Technology Co.Ltd(688080) ( Beijing Inhand Networks Technology Co.Ltd(688080) . SH).
Risk warning: the risk of uncertainty in international relations, the risk that the shipment volume is lower than expected due to the epidemic, and the progress of 5g construction is lower than expected
