Recently, due to the repeated impact of the epidemic, the operating rate and supply chain, and the capital market have some concerns about the annual performance and product demand of manufacturing companies. Specifically, in the communication industry, the valuation of manufacturing enterprises such as optical modules and the Internet of things has decreased to a large extent. On April 16, the Shanghai Economic and Information Technology Commission issued the guidelines for the prevention and control of the epidemic situation of industrial enterprises returning to work and production in Shanghai (the first edition), which made it clear that all district governments, streets, towns and parks should actively support enterprises returning to work and production and guide enterprises to “one enterprise and one policy”. We believe that the release of the first version of the guidelines is an important sign of the restart process of relevant industrial chains. At the same time, in the medium and long term, under the background of the irreversible trend of digital + Internet of things, the prosperity of optical module and Internet of things module as the core track is still strong. It is suggested that investors should actively pay attention to the valuation and repair opportunities for the core targets of high prosperity track such as Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Meig Smart Technology Co.Ltd(002881) , Quectel Wireless Solutions Co.Ltd(603236) , Jiangsu Zhongtian Technology Co.Ltd(600522) .
Core recommendations:
\u3000\u30001. High prosperity manufacturing core quality companies: 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) , Suzhou Tfc Optical Communication Co.Ltd(300394) Suzhou Tfc Optical Communication Co.Ltd(300394) , Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628)
\u3000\u30002. Telecom operators: China Mobile 600941, China Telecom Corporation Limited(601728) China Telecom Corporation Limited(601728) pay attention to the valuation repair of high boom manufacturing industry. On April 16, the Shanghai Economic and Information Technology Commission issued the guidelines for the prevention and control of the epidemic situation of industrial enterprises returning to work and production in Shanghai (First Edition). The guidance is clear that district governments, streets, towns and parks should actively support enterprises to resume work and production, and guide enterprises to “one enterprise and one policy”. We believe that the release of the first version of the guidelines is an important sign of the restart process of relevant industrial chains. At the same time, in the medium and long term, under the background of the irreversible trend of digitization + interconnection of all things, the prosperity of optical module and Internet of things module as the core high prosperity track is still strong. It is suggested that investors actively pay attention to the high-quality leading targets in relevant industries.
Omdia predicts that the PON equipment market will exceed US $16 billion by 2027. The latest forecast report of market research company omdia on optical fiber and copper access equipment shows that the global PON market will grow at a compound annual growth rate of 12.3% from 2020 to 2027 and reach US $16.3 billion by 2027.
Mobile experts: millimeter wave investment is expected to revive by the end of 2023 and 2024. According to c114, on April 13, mobile experts, a market research company, said in its latest 5g millimeter wave market forecast report that millimeter wave investment is expected to revive by the end of 2023 and 2024. Dan McNamara, chief analyst of mobile experts, said that one of the basic values of millimeter wave 5g is that it provides huge capacity gain and supports ultra-high data rate. Therefore, he expects that with the surge of data traffic on C-band 5g network, operators will need to deploy more millimeter wave stations.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
