This week, the CSI 300 fell 0.99% and the gem fell 4.26%, of which the communication sector fell 5.42%, and the price performance of the sector was weaker than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 1.23%; Over the same period, the turnover rate of 300 constituent stocks in Shanghai and Shenzhen was 0.45%, and the overall activity of the sector was stronger than that of the market. In terms of individual stocks in the communications sector, the top five companies that rose this week were Gome communications (27.66%), Suzhou New Sea Union Telecom Technology Co.Ltd(002089) (15.42%), Datang Telecom (10.94%), Sichuan Tianyi Comheart Telecom Co.Ltd(300504) (5.46%), Shenzhen Gongjin Electronics Co.Ltd(603118) (3.93%); The companies with the top five declines are: Suna Co.Ltd(002417) (- 21.36%), Avit.Ltd(300264) (- 20.23%), Queclink Wireless Solutions Co.Ltd(300590) (- 18.34%), Hengbao Co.Ltd(002104) (- 18.33%), Wenzhou Yihua Connector Co.Ltd(002897) (- 16.59%).
Shanghai has taken many measures to promote the resumption of work and production, and the sentiment of automobile intelligence and Internet of things is expected to be repaired. Since March, outbreaks have occurred in Guangdong, Jilin, Shanghai and other places. The three places are the centers of China’s automobile industry clusters, accounting for 32.58% of the total automobile output in 21 years. According to public reports, complete vehicle factories such as FAW, BMW Brilliance, Tesla and SAIC Volkswagen and factories in the epidemic areas and surrounding areas of auto parts manufacturers such as Bosch and anbofu have stopped production one after another, Contemporary Amperex Technology Co.Limited(300750) and grid management measures have been taken due to the upgrading of local epidemic prevention and control measures. In the middle and late March, the average year-on-year decline in the logistics index of complete vehicles and trucks in Shanghai exceeded 48% in a single day, and the risk of parts supply increased. All or some models of Japanese car enterprises such as Weilai, great wall tank and Mitsubishi and Honda reduced production and stopped production one after another. Recently, the central and local governments have issued a series of policies to promote the resumption of work and production. The State Council requires to make every effort to smooth the transportation channels. On April 15, the Ministry of industry and information technology set up a “white list” of key enterprises to guarantee the operation and transfer, and concentrated resources to give priority to ensuring the resumption of work and production of 666 key enterprises in key industries such as integrated circuit, automobile manufacturing, equipment manufacturing and biomedicine. On April 16, the Shanghai Economic and Information Technology Commission issued guidelines on the prevention and control of the epidemic situation of returning to work and production. Saic Motor Corporation Limited(600104) will start the pressure test of resumption of work and production on April 18, and will drive some core parts factories to enter the pressure test. FAW, Weilai, Bosch and other auto enterprises and parts manufacturers actively promote production recovery through closed-loop production. In terms of market performance, the core targets of automobile connectors, controllers and Internet of things modules affected by the epidemic generally fell by 30% – 50% from the recent high, and the valuation is at a historical low. Some companies still achieved high growth in the Q1 forecast of the impact of the epidemic. With the orderly resumption of work and production, the impact of the epidemic on the supply chain is expected to be alleviated. After the logistics is restored, the vehicle manufacturers may increase the supply chain inventory replenishment procurement in the short term, The sentiment of the sector is expected to be repaired. Intelligent innovation + localization will continue to promote the medium-term growth of the industrial chain. It is suggested to bargain hunting the core targets of automobile connectors, controllers and Internet of things modules.
The penetration rate of new energy vehicles reached a new high in March, and the medium-term growth potential of vehicle intelligence is great. According to the data of China Automobile Association, affected by the epidemic, the production and sales of automobiles in March of 22 years were 224.12234000 respectively, with a month on month ratio of + 23.4% / + 28.4%, a year-on-year ratio of – 9.1% / – 11.7%, and the market share of independent brands was 48.5%. The production and sales of new energy vehicles were 465000 and 484000 respectively, with a year-on-year increase of about 1.1 times, realizing contrarian growth. The penetration rate in a single quarter reached 25.73%, with a month on month increase of 3.96 PCT, a record high. The production and sales of 22q1 new energy vehicles were 1293000 and 1257000 respectively, with a year-on-year increase of about 1.4 times. The penetration rate in the first quarter was 22.74%, with a year-on-year increase of 12.35pct Byd Company Limited(002594) led the new energy market in March and Q1 with the sales of 103200 and 282700 vehicles. The new forces of car making, Xiaopeng, ideal and Nezha, all achieved year-on-year growth in a single month and a quarter. Intellectualization has become the second half of the competition for new energy vehicles. The recently held electric vehicle hundred people’s meeting pointed out that the application of L2 level auxiliary driving technology has accelerated, and L3 + automatic driving has taken the lead in the trial in specific scenes and limited areas such as Beijing Yizhuang and Wuxi. China will make full use of 5g leading technology and new infrastructure to promote the coordinated development of vehicle networking and vehicle road. According to car cloud data, at present, the penetration rate of intelligent vehicles with L2 level and OTA function is less than 18%, including 11.6% for fuel vehicles and 40.4% for new energy vehicles. Independent brands accounted for 80% of the top 10 new energy intelligent vehicle sales in February, and six new car manufacturers including Weilai, Xiaopeng, ideal and Zero run were listed. Among the top 10 intelligent new energy vehicles, the standard L2 level driving assistance system accounted for 70%, of which the new car manufacturers accounted for more than 50%, The intelligent layout is faster than that of traditional automobile enterprises. It is expected that the penetration rate of intelligent network connected vehicles will continue to increase with the increase of its market share and the large volume of traditional brand intelligent vehicles.
Guangdong’s “14th five year plan” energy plan was issued, and the installed capacity of new offshore wind power was 17gw. Guangdong Province recently issued the “14th five year plan” for energy development in Guangdong Province, which proposed to vigorously develop offshore wind power, including large-scale development of offshore wind power, promote the centralized and continuous development and utilization of projects, and build a 10 million KW offshore wind power base in eastern and western Guangdong. During the 14th Five Year Plan period, the installed capacity of offshore wind power increased by about 17 million KW. Driven by the dual carbon policy, all localities have issued the 14th five year plan for marine wind power. Shandong has a total planned installed capacity of 35 million kilowatts, focusing on promoting the construction of projects with an installed capacity of more than 5 million kilowatts in Bozhong and the south of the peninsula, completing the grid connection of 2 million kilowatts, striving for 7.6 million kilowatt sites to be included in the national far-reaching marine wind power planning. Zhejiang has launched the scenery doubling project, plans to build more than three million kilowatt offshore wind power bases, and newly increase the installed capacity of offshore wind power by more than 4.55 million kilowatts, All indicators of new wind power in the 14th five year plan focus on the field of offshore wind power. There are 28 planned offshore wind power project sites in Jiangsu, with a scale of 9.09 million KW. During the 14th Five Year Plan period, Guangxi has approved offshore wind power of more than 8 million KW and put into operation 3 million KW. At present, 7.5 million KW offshore wind power projects have been approved by the Energy Bureau, and Hainan and Fujian have also issued relevant plans to support the offshore wind power industry, The total installed capacity of offshore wind power in the national “14th five year plan” exceeds 100gw, which effectively drives the growth of submarine cable demand. The barrier of submarine cable industry is relatively high, and the oligarch competition pattern is clear. We continue to be optimistic about the growth of China’s leading enterprises Jiangsu Zhongtian Technology Co.Ltd(600522) , Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) and .
Investment suggestion: pay attention to on-board connectors: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Wenzhou Yihua Connector Co.Ltd(002897) , Ningbo Sunrise Elc Technology Co.Ltd(002937) , Dongguan Dingtong Precision Metal Co.Ltd(688668) , Cwb Automotive Electronics Co.Ltd(605005) etc; Harness: Kunshan Huguang Auto Harness Co.Ltd(605333) , Jiangsu Etern Company Limited(600105) etc; Automobile controller: Keboda Technology Co.Ltd(603786) , Shenzhen H&T Intelligent Control Co.Ltd(002402) ; Internet of things: Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Meig Smart Technology Co.Ltd(002881) , Wingtech Technology Co.Ltd(600745) , etc; Submarine cable and engineering services: Jiangsu Zhongtian Technology Co.Ltd(600522) , Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) , etc; Network equipment supplier: Unisplendour Corporation Limited(000938) (Xinhua III), Fujian Star-Net Communication Co.Ltd(002396) , Zte Corporation(000063) ; Telecom operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ; Data center: Shanghai Baosight Software Co.Ltd(600845) , Kehua Data Co.Ltd(002335) , Beijing Sinnet Technology Co.Ltd(300383) , etc; IDC HVAC equipment: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) etc; Optical devices: Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) ; Military communications and satellite applications: Jushri Technologies Inc(300762) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Shanghai Huace Navigation Technology Ltd(300627) , China Satellite Communications Co.Ltd(601698) , etc.
Risk warning events: increased epidemic risk, policy change risk, increased market competition risk, overseas trade disputes, market systemic risk, etc
