China Galaxy Securities Co.Ltd(601881) 04 released the Research Report on June 18, saying that it recommended (maintained) the rating for the communication industry.
The centralized equipment procurement of operators has been steadily promoted, and the capital expenditure has stabilized, extending from the CT side to the it side: China Mobile announced the candidates for centralized procurement: the centralized procurement of g.654e optical fiber and cable products from 2022 to 2023, and the three enterprises of Changfei, Hengtong and beacon won the bid; In 2022, the base station antenna was purchased intensively, and many manufacturers such as Jingxin communication, CITIC mobile and Huawei won the bid; From 2022 to 2023, 444 antennas and single 4 antennas (including 700m) were purchased intensively, and eight manufacturers including Hengxin technology and Jingxin communication won the bid China United Network Communications Limited(600050) announced the list of candidates for winning the bid for the procurement project (traffic tracing and evidence collection equipment) to improve the normalization capacity of Beijing cloud network delivery center in 2021, and three enterprises Venustech Group Inc(002439) , Topsec Technologies Group Inc(002212) and HengAn Jiaxin were shortlisted; In 2020, the bidding results of the new iteration project of the application software of the ECS system innovation business management platform of the headquarters were officially announced, and HengAn Jiaxin and Huashun Xin'an were shortlisted China Telecom Corporation Limited(601728) start the centralized purchase of customized WDM equipment and the 5g core network expansion project of Shanxi company; In 2021, the list of successful candidates for the upgrading project of voice International Bureau was announced, and Huawei and ZTE were shortlisted. The intensive centralized purchase of relevant equipment by operators shows that, on the one hand, the stability of operators' business development is expected to drive the stabilization of the whole communication industry chain. On the other hand, the continuous extension of investment focus CT to it shows that the comprehensive development process of operators' ICT business is expected to exceed expectations.
Investment suggestion: 5g application is the key direction of future communication beyond expectation, and the ICT integration direction on the equipment side.
The prosperity of the industry is expected to improve: we believe that the investment focus of the communication industry is shifting from equipment to application, and the equipment manufacturers that prefer it services of operators are expected to usher in the increase of capital expenditure. It is recommended to pay attention to the subject matter: optical module Zhongji Innolight Co.Ltd(300308) ( Zhongji Innolight Co.Ltd(300308) ), Eoptolink Technology Inc.Ltd(300502) ( Eoptolink Technology Inc.Ltd(300502) ), the related subject matter of Eastern digital Western computing Beijing Sinnet Technology Co.Ltd(300383) Beijing Sinnet Technology Co.Ltd(300383) , Suzhou Tfc Optical Communication Co.Ltd(300394) Suzhou Tfc Optical Communication Co.Ltd(300394) , Shenzhen Envicool Technology Co.Ltd(002837) Shenzhen Envicool Technology Co.Ltd(002837) , and the Internet of vehicles / things Shenzhen H&T Intelligent Control Co.Ltd(002402) . ( Shenzhen H&T Intelligent Control Co.Ltd(002402) ), Quectel Wireless Solutions Co.Ltd(603236) ( Quectel Wireless Solutions Co.Ltd(603236) ), Fibocom Wireless Inc(300638) Fibocom Wireless Inc(300638) , video conference Yealink Network Technology Co.Ltd(300628) Yealink Network Technology Co.Ltd(300628) , navigation application target Shanghai Huace Navigation Technology Ltd(300627) Shanghai Huace Navigation Technology Ltd(300627) , 5g message Montnets Cloud Technology Group Co.Ltd(002123) 123). At the same time, as a long-term configuration direction, the communication operator sector also needs to pay special attention, and China Mobile (600941) is recommended.
Risk warning: risk of rising raw material price; Global epidemic impact and uncertainty of foreign policy environment; 5g commercial promotion was less than expected.
