This week, the CSI 300 rose by 2.04%, and the gem rose by 5.04%, of which the communication sector rose by 3.86%, and the price performance of the sector was stronger than the market; The turnover rate of 126 constituent stocks of the communication (CITIC) index this week was 0.87%; In the same period, the turnover rate of 300 constituent stocks in Shanghai and Shenzhen was 0.39%, 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 gainers this week are: Wanma Technology Co.Ltd(300698) (39.54%), Shenzhen Neoway Technology Co.Ltd(688159) (39.01%), Huizhou Speed Wireless Technology Co.Ltd(300322) (21.06%), Nanjing Panda Electronics Company Limited(600775) (16.64%), Gci Science & Technology Co.Ltd(002544) (15.78%); The companies with the top five declines are Zjbc Information Technology Co.Ltd(000889) (- 22.68%), Sunsea Aiot Technology Co.Ltd(002313) (- 22.63%), Beijing Unistrong Science & Technology Co.Ltd(002383) (- 12.73%), Keller Technology (- 3.05%) and Suna Co.Ltd(002417) (- 2.68%).
Longyuan Sheyang offshore wind power 1GW project started bidding, and the submarine cable continued to be in a high boom. The national energy group platform recently released the bidding announcement of the 220kV submarine cable and accessory equipment procurement public bidding project of Longyuan Power Jiangsu Offshore Longyuan Wind Power Co., Ltd. Guoneng Longyuan Sheyang 1 million KW offshore wind power project. The offshore distance of the project group center is about 60km, which is higher than the offshore distance of normal projects, with a total capacity of 1GW. It is divided into three packages H3 / H4 / H5, and the planned installed capacity is 301mw / 306mw / 399.5mw respectively, The number and model of corresponding fans are 43 7mw / 36 8.5mw / 47 8.5mw respectively. The project is proposed to set up two 220kV sea rising voltage stations and one onshore centralized control center, which are connected by two circuit 220kV sea cables, with a total length of 352.6km (2 km) × 85.7km+2 × 90.6km), it is planned to complete the supply of all equipment in nine batches, including the first batch on September 15, 2022, the second batch on October 15, 2022 and the third batch on November 15, 2022. The Sheyang 1GW offshore wind power project is a 2.65gw competitive configuration project in Jiangsu in 2021. According to the announcement, the other two projects are Jiangsu New Energy Development Co.Ltd(603693) Dafeng 850000kw offshore wind power project group and Three Gorges Dafeng 800000kw offshore wind power project group. It is expected that the submarine cable bidding will continue to start. According to the plan, Jiangsu will build 28 offshore wind power project sites during the 14th Five Year Plan period, with a new scale of 9.09gw. The new round of submarine cable bidding cycle has been started since November 2021. The bidding results of China Resources Power Cangnan 1, Mingyang Yangjiang Qingzhou 4, Yuedian Yangjiang Qingzhou 1 and Qingzhou 2, and 500MW of Shandong Peninsula V site of state power investment have been announced. The geographical location and product performance of submarine cable manufacturers form industry barriers, and they are optimistic about the leading manufacturers Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) , Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) , Ningbo Orient Wires & Cables Co.Ltd(603606) .
22q1 global cloud service expenditure goes up, focusing on the cloud industry chain. According to canalys report, the digital transformation of enterprises accelerated. In the first quarter of 2022, the global cloud infrastructure service expenditure reached US $55.9 billion, a year-on-year increase of 34% and a month on month increase of US $2 billion. Amazon, Microsoft and Google, the three major cloud service providers, benefited from the increase of cloud computing adoption rate and the expansion of use scale. The total expenditure accounted for 62% of global user expenditure, with a year-on-year increase of 42%, of which AWS accounted for 33% and a year-on-year increase of 37%. They have reached cooperation with T-Systems, Verizon, Telef ó Nica and other telecom companies. At the same time, they plan to invest about US $11.8 billion to build five large data centers, and Microsoft azure ranks second, The expenditure increased by 46% year-on-year and the market share was 21%, which mainly benefited from the surge in large volume and long-term orders. Among them, the number of orders exceeding US $100 million doubled year-on-year. The year-on-year growth rate of Google cloud reached 54% and the market accounted for 8%. The company is expanding the global layout of regional data center. The acquisition of mandiant plan will be completed in the second half of the year. Through cooperation with it, it will promote cloud network security practice and migrate the data center to GCP. The capital expenditure of overseas cloud computing head manufacturers has increased rapidly since 20q3. In 22q1, the total capital expenditure of Amazon / Microsoft / Google / meta (FB) was $34.779 billion, a year-on-year increase of 32.20% and a slight increase of 3.0% month on month. Amazon and Google both said they would continue to increase capital expenditure. Meta predicted that the capital expenditure would increase to 29-34 billion yuan in 2022, with a year-on-year increase of more than 50%. Dell’Oro predicted that the capital expenditure of global data centers would increase by 17% in 2022, The large-scale technical upgrading of the data center from 100g to 200 / 400g will increase the demand for high-end optical modules. The demand on the telecom side of the Chinese market is gradually recovering driven by the deployment of “double Gigabit” network and the centralized purchase of 5g scalable small base stations. The overall revenue and profit of Chinese optical module device manufacturers increased steadily in 21 and 22q1, reflecting the high prosperity of the sector.
The scale of the global network market has grown steadily, and the growth rate of China’s switch and WLAN market has increased. According to IDC’s report, the global network market in 2021 was US $54.24 billion, with a year-on-year increase of 10.1%, of which the switch / router / WLAN market increased by 9.7% / 6.5% / 20.4%, and the Chinese network market was US $10.24 billion, with a year-on-year increase of 12.1%, of which the switch / router / WLAN market increased by 17.5% / – 2.6% / 47.2%. In the switch market, the data center switch increased by 7.4% year-on-year. The cloud construction of enterprise business and data center has become a trend. Driven by the policy of “counting from the east to the west”, the rapidly growing traffic will put forward the upgrading demand for network construction, and the deployment of high-speed 200 / 400g products will be accelerated. The park network switch increased by 27.1% year-on-year, a record high. Enterprises’ demand for network intelligent management and automatic operation and maintenance of the park network increased. With the continuous maturity of cloud computing, Internet of things, AI and other technologies, the digitization of the park network accelerated. The decline in the growth rate of the router market was mainly affected by the slowdown in 5g construction. The enterprise network router market increased by 7.6% year-on-year, and the demand for medium and high-end routers from emerging technologies and new businesses increased. In the WLAN market in 2021, the projects shelved by the epidemic were fully implemented, the recovery of services, manufacturing, medical and other industries led to the growth of the industry, the proportion of wi-fi6 shipments increased, the substitution trend for wi-fi5 strengthened, and various mainstream manufacturers launched differentiated products and solutions for different scenarios such as education and industry. At the same time, the construction of digital facilities such as terminal wireless access and network information upgrading of enterprise branch stores have driven the rapid growth of WLAN market.
Investment suggestion: pay attention to submarine cables and engineering services: Jiangsu Zhongtian Technology Co.Ltd(600522) , Ningbo Orient Wires & Cables Co.Ltd(603606) , Hengtong Optic-Electric Co.Ltd(600487) , etc; 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; 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) , Zhongji Innolight Co.Ltd(300308) ; 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) ; 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: project progress is less than expected, 5g investment is less than expected, market competition intensifies, overseas trade disputes, market systemic risks, etc
