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Recently, the three major operators have released the first quarter performance report. The overall operating performance is stable and good, and the growth rate has reached a new high in recent years. Among them, China Mobile ranked first in terms of revenue growth and scale, with a revenue of 227.32 billion yuan.
The number of mobile users continues to grow, and the penetration rate of 5g package continues to increase.
By the end of March, the number of mobile users of operators had reached 1.66 billion, a net increase of 18.2 million over the end of the previous year.
By the end of March, the total number of 5g package users of the three major operators had reached 849 million, and the 5g penetration rate was 51.1%.
By the end of March 2022, the penetration rates of China Mobile and China Telecom Corporation Limited(601728) 5g were 48.3% and 55.5% respectively, 7.9pc and 5.1pct higher than that at the end of last year. With the rapid growth of emerging digital industries and the continuous optimization of revenue structure, it is expected to open the second curve of operator growth.
China Mobile continued to promote the scale expansion of “network + cloud + dict”. The business revenue of dict was 23.7 billion yuan, a year-on-year increase of 50.9%, accounting for 12.2% of service revenue, an increase of 3.9pct compared with the end of 2021.
China Telecom Corporation Limited(601728) vigorously promoted the integrated development of digital economy and real economy, and the revenue of industrial digital business reached 29.414 billion yuan, with a year-on-year increase of 3.2%, accounting for 26.7% of service revenue, an increase of 2.1pct compared with the end of last year.
the Internet revenue of China United Network Communications Limited(600050) industry reached 19.4 billion yuan, a year-on-year increase of 34.8%, accounting for 23.9% of service revenue, an increase of 5.4pct compared with 2021, of which the cloud revenue of China Unicom increased by 114% year-on-year. The number of new base stations built by 5g has increased significantly, and the scale of computing power has continued to grow.
There were 1.794 million new base stations in China in the first quarter of last year, a year-on-year increase of 1.554 million.
The number of gigabit network ports has increased by 1.19 million, reaching a total of 9.05 million, and has the ability to cover 320 million families. The number of Gigabit and above access users reached 45.96 million, a net increase of 11.4 million over the end of the previous year.
The scale of computing power continues to grow, and the total scale of data center racks in use exceeds 5 million.
Cellular Internet of things users grew rapidly, and the gap between the scale and mobile phone users was further narrowed.
By the end of March, the three major businesses had developed 1.52 billion end users of the cellular Internet of things, a net increase of 119 million over the end of the previous year, a year-on-year increase of 27.4%.
The scale of end users of the cellular Internet of things is rapidly approaching that of mobile phone users, and the scale difference between the two is reduced to 140 million, accounting for 47.7% of the number of mobile network terminal connections.
Market review:
This week (202204.18202204.22), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by – 3.87%, – 5.12%, – 6.66% respectively, and the Shenwan communication index increased by – 2.28%, ranking fifth in Shenwan’s 28 primary industries.
Performance of individual stocks in the communication sector this week:
The top five stock price increases are: Fujian Start Group Co.Ltd(600734) , Suzhou New Sea Union Telecom Technology Co.Ltd(002089) , Dongguan Dingtong Precision Metal Co.Ltd(688668) , Beijing E-Techstar Co.Ltd(300513) , Yealink Network Technology Co.Ltd(300628)
The top five stock price declines are: Boomsense Technology Co.Ltd(300312) , Chutian Dragon Co.Ltd(003040) , Wuhan Tianyu Information Industry Co.Ltd(300205) , Eoptolink Technology Inc.Ltd(300502) , Zhongtongguomai Communication Co.Ltd(603559)
Investment strategy: (1) 5g network coverage continues to improve, the number of 5g base stations exceeds 1.56 million, and the leading 5g equipment manufacturer is continuously 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; (3) The development of the Internet of things industry has entered the fast lane, focusing on the investment opportunities of vehicle communication modules. It is suggested to pay attention to Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) ; (4) In the context of double carbon, green energy conservation has become the main theme. The key recommendation is precision temperature control faucet: Shenzhen Envicool Technology Co.Ltd(002837) .
Risk tip: the development of 5g is not as expected, the trade friction between China and the United States has further escalated, and the epidemic has further spread.
