Old and new, dilemma reversal, 5g industrial chain pattern reconstruction
Old and new, 5g construction deepened and industrial pattern reshaped: since the issuance of 5g license on June 6, 2019, 5g network has initially achieved coverage in key cities, and the number of 5g users has increased rapidly. The share of domestic equipment manufacturers continues to increase and accelerate the upstream layout. Under the background of network upgrading, the promotion of industrial digitization is accelerated, and the demand for network security is promoted. The downstream meta universe application drives the network upgrade, and the large communication sector is expected to usher in the double rise stage of performance and valuation.
The dilemma reversed, 5g supporting demand rose, and the upstream price rise pressure slowed down: driven by 5g application, the relevant supporting demand grew steadily. In 21 years, the upstream price rise and the amplification of cost side pressure drove the accelerated clearing of production capacity and the enhancement of leading position. The reversal trend of PCB and optical fiber and cable industry in the past 22 years is expected to appear. The prosperity of military informatization is rising, and the key components of the communication terminal industry chain usher in the golden age of development.
With the development of cloud network and the rapid growth of industrial digitization, we are optimistic about Q1 high growth industries and individual stocks
Core recommendations: Unisplendour Corporation Limited(000938) , Huagong Tech Company Limited(000988) , Wus Printed Circuit (Kunshan) Co.Ltd(002463) , Suzhou Tfc Optical Communication Co.Ltd(300394) Yealink Network Technology Co.Ltd(300628) Fibocom Wireless Inc(300638) ； Chuangyao technology, Changguang Huaxin, Unigroup Guoxin Microelectronics Co.Ltd(002049) etc.
We judge that the communication industry is in the process of "old and new" changes in 2022. The development of the industry is upward, the valuation of head enterprises is at the bottom of history, and we are optimistic about the overall potential opportunities of the industry:
1. Booming demand of cloud computing industry chain - with the expected rapid growth of global data center capital expenditure in 2022 and Chinese operators increasing investment in Network & cloud business, key companies in the industry chain are expected to continue to benefit, including: 1) equipment side: focus on Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Zte Corporation(000063) , Hangzhou Dptech Technologies Co.Ltd(300768) , etc; 2) Operators: focus on China Mobile and China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) , etc. 3) Upstream core devices: optical devices - it is recommended to focus on Huagong Tech Company Limited(000988) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Zhongji Innolight Co.Ltd(300308) and Advanced Fiber Resources (Zhuhai) Ltd(300620) , Accelink Technologies Co.Ltd(002281) and so on; Optical fiber cable - attention recommended: Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) ; PCB - focus on Wus Printed Circuit (Kunshan) Co.Ltd(002463) , Shennan Circuits Co.Ltd(002916) , Shengyi Electronics Co.Ltd(688183) etc.
2. Industry digitization continues to accelerate - 1) industrial Internet: China's industrial Internet has developed at the right time, place and people. Grasp the dividend of industrial upgrading, and the core intelligent equipment and industrial Internet platform will usher in rapid development opportunities. It is suggested to pay attention to: Zhejiang Supcon Technology Co.Ltd(688777) , Opt Machine Vision Tech Co.Ltd(688686) , etc. 2) Aiot: the demand of aiot industry continues to be high, the valuation is not high, and the potential energy of the head target is stronger. It is suggested to focus on: Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) , Cubic Sensor And Instrument Co.Ltd(688665) , Shanghai Huace Navigation Technology Ltd(300627) , Yealink Network Technology Co.Ltd(300628) , and focus on: Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Topband Co.Ltd(002139) , etc. 3) The long-term trend of advanced laser manufacturing is improving - it is suggested to focus on: Huagong Tech Company Limited(000988) , Changguang Huaxin, Advanced Fiber Resources (Zhuhai) Ltd(300620) , Shenzhen Jpt Opto-Electronics Co.Ltd(688025) , Han'S Laser Technology Industry Group Co.Ltd(002008) , Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) , etc.
3. The rise of communication chips has benefited from the wave of localization - communication chip companies have continuously increased R & D investment in recent years, improved product autonomy and achieved a leading layout in key fields. It is suggested to focus on: Unigroup Guoxin Microelectronics Co.Ltd(002049) (China's leading special chip industry), Hebei Sinopack Electronic Technology Co.Ltd(003031) (China's leading gallium nitride business and broad growth space), and it is also suggested to focus on China's baseband communication chips, access end communication chips Optical chip related companies.
Risk tip: systematic risk of the market & unexpected Sino US science and technology friction events.
Compliance tip: according to the disclosure of the company's 2021 annual report, Haitong Securities Company Limited(600837) self operated holding [ Cubic Sensor And Instrument Co.Ltd(688665) Cubic Sensor And Instrument Co.Ltd(688665) ] exceeds 1% of the total share capital Haitong Securities Company Limited(600837) innovation subsidiary holds 1% of the total share capital of [688259 chuangyao technology] and sells shares at the upper limit.
