Traditional communication is gradually encountering development bottlenecks. In the double carbon era, “smart manufacturing and smart alliance + Haifeng new energy” welcomes historic development opportunities. In the first half of 2022, demand gradually recovered, but adverse factors such as shortage of upstream raw materials, rising prices and rising transportation costs still put pressure on some enterprises, and the recurrence of the epidemic also had a certain impact on the macro economy. Looking forward to the second half of 2022, we judge that the epidemic situation and upstream cost pressure will be gradually relieved, and 5g user penetration is expected to continue to increase. With the country’s firm promotion of dual carbon policy and digital economy, we believe that the investment in the communication industry will focus on the three core main lines of “intelligent manufacturing, intelligent networking and sea breeze”. At the same time, we suggest to focus on investment opportunities in key sectors such as cloud computing and operators.
Core track 1 in the second half of 2022: ride the wind of “intelligent manufacturing + Intelligent Internet connection” and focus on high-quality targets. In the double carbon era [intelligent manufacturing / industrial Internet] has obvious advantages in reducing costs and increasing efficiency for enterprises. At present, the penetration rate is low and the development space of trillion blue ocean is broad. It is suggested to focus on the three main investment lines of “full ecological layout process intelligent manufacturing leader + discrete intelligent manufacturing provider bound to core customers + basic industrial software enterprise”; The long-term development trend of “Intelligent Networking & new energy vehicles” in the era of three modernizations of automobiles has been determined, which will drive the vehicle electronic subdivision tracks such as vehicle lens, lidar, controller, vehicle module and connector to achieve leapfrog growth; 5g era [aiot & Power Internet of things] Zhilian everything, focusing on modules, power Internet of things and other core tracks.
Core Track II in the second half of 2022: the “14th five year plan” sea breeze plan is nearly 140gw, bringing hundreds of billions of investment scale. Attention is paid to deterministic tracks such as submarine cable. Haifeng has a broad space for long-term development, [submarine cable] is the most deterministic link of Haifeng industrial chain. The investment scale of the “14th five year plan” is expected to be nearly 100 billion, which has the characteristics of high competition barriers and stable competition pattern. At the same time, the development of far-reaching sea is expected to drive the submarine cable industry to usher in a new opportunity of “simultaneous rise in volume and price” and enhance the demand for flexible DC technology submarine cable, and the submarine cable leader is expected to benefit from the core. At the same time, it is suggested to pay attention to the communication enterprises actively arranging energy storage, temperature control and other tracks.
Core track 3 in the second half of 2022: the state vigorously promotes the digital economy, cloud computing as the core base and operators as practitioners, which has long-term investment value. The country attaches great importance to the development of digital economy and has repeatedly issued documents to promote it. Affected by factors such as the lack of core in the upstream and the outbreak of new applications in the downstream, the [cloud computing] industry chain has fallen into a low development in the short term. In the long run, with the rise of new applications such as meta universe, cloud computing will return to a high growth stage; At the same time, [operators] will also usher in new opportunities for 2B end development in the era of digital economy.
Investment suggestion: focus on core sectors such as cloud computing and operators with the main line of “smart manufacturing and smart alliance + Haifeng new energy”. Track 1: intelligent manufacturing + Intelligent Networking – 1) Intelligent Manufacturing: key recommendations: Shanghai Baosight Software Co.Ltd(600845) , Zhejiang Supcon Technology Co.Ltd(688777) , Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , Guangzhou Sie Consulting Co.Ltd(300687) , Nancal Technology Co.Ltd(603859) , etc; It is suggested to pay attention to: Foxconn Industrial Internet Co.Ltd(601138) , Anhui Ronds Science & Technology Incorporated Company(688768) , Dongguan Yiheda Automation Co.Ltd(301029) , Shenzhen Invt Electric Co.Ltd(002334) , Shanghai Weihong Electronic Technology Co.Ltd(300508) , etc; 2) Intelligent Internet connected vehicles: key recommendations: Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) , Meig Smart Technology Co.Ltd(002881) , Ningbo Yong Xin Optics Co.Ltd(603297) , torch technology, Lianchuang Electronic Technology Co.Ltd(002036) , Dongguan Yutong Optical Technology Co.Ltd(300790) , Zhejiang Crystal-Optech Co.Ltd(002273) , Keboda Technology Co.Ltd(603786) , etc; Suggestions and concerns: Queclink Wireless Solutions Co.Ltd(300590) , Shanghai Laimu Electronics Co.Ltd(603633) etc; 3) Internet of things: key recommendations: Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) , Meig Smart Technology Co.Ltd(002881) , Beijing Inhand Networks Technology Co.Ltd(688080) , etc; It is suggested to pay attention to: Willfar Information Technology Co.Ltd(688100) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) , Hanwei Electronics Group Corporation(300007) , Queclink Wireless Solutions Co.Ltd(300590) Aojie technology, Leaguer (Shenzhen) Microelectronics Corp(688589) etc. Track 2: Haifeng new energy – 1) submarine cable: key recommendation: Jiangsu Zhongtian Technology Co.Ltd(600522) ; Suggestions for attention: Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) etc; 2) Temperature control and energy storage: attention is recommended: Shenzhen Envicool Technology Co.Ltd(002837) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Guangzhou Goaland Energy Conservation Tech Co.Ltd(300499) , Kehua Data Co.Ltd(002335) , etc. Track 3: cloud computing + operators – 1) cloud computing: key recommendations: Shanghai Baosight Software Co.Ltd(600845) , Beijing Sinnet Technology Co.Ltd(300383) , Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , Beijing Kingsoft Office Software Inc(688111) , BiliBili, etc; Suggestions and concerns: Qinhuai data, universal data, Hongda Xingye Co.Ltd(002002) 335 \ , Yealink Network Technology Co.Ltd(300628) , Bizconf Telecom Co.Ltd(300578) , Montnets Cloud Technology Group Co.Ltd(002123) , etc; 2) Operators: it is suggested to pay attention to: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) .
Risk factors: the development of 5g and cloud computing is not as expected, and the covid-19 epidemic spread.
