I. The State Council issued the “14th five year plan” for the development of digital economy. The State Council issued the “14th five year plan” for the development of digital economy. In 2020, the added value of China’s core industries of digital economy will account for 7.8% of China’s gross domestic product (GDP). Digital economy provides a strong driving force for the sustained and healthy development of economy and society. Among them, information infrastructure is the world’s leading. Build the world’s largest optical fiber and fourth generation mobile communication (4G) network, and accelerate the construction and application of fifth generation mobile communication (5g) network. The penetration rate of broadband users has increased significantly, with optical fiber users accounting for more than 94%, the penetration rate of mobile broadband users reaching 108%, and the number of active users of Internet Protocol version 6 (IPv6) reaching 460 million.
The plan points out that by 2025, the digital economy will move towards a comprehensive expansion period, the added value of the core industries of the digital economy will account for 10% of GDP, the number of Gigabit broadband users will reach 60 million, and the application penetration rate of industrial Internet platform will reach 45%. The data element market system has been preliminarily established, the digital transformation of industry has reached a new level, the level of digital industrialization has been significantly improved, digital public services are more inclusive and equal, and the digital economic governance system is more perfect.
The plan fully encourages the development of the communication industry and benefits the communication industry. It has great expectations for the communication industry from infrastructure to application. Optimistic about the long-term prosperity of the communication industry. The continuous promotion of Gigabit Network mentioned above has driven the growth of optical cat, PON, WiFi 6 and other related industries. It is suggested to pay attention to: Zte Corporation(000063) , Shenzhen Gongjin Electronics Co.Ltd(603118) , Broadex Technologies Co.Ltd(300548) .
II. China Mobile’s “three new” strategy aims to break the trillion revenue scale in 2025. Yang Jie, chairman of China Mobile, talked about the “three new” strategy again, that is, to promote new infrastructure, integrate new elements, stimulate new kinetic energy, and systematically build a new information infrastructure focusing on 5g, computing network and smart console. The specific goal is to break the trillion income scale and double the total number of connections at the end of the 14th five year plan, that is, 2025: from the current 2 billion to 4 billion. As one of the typical state-owned enterprise reform enterprises, by the end of 2021, the three-year action progress of the company’s state-owned enterprise reform had reached 93%, meeting the 70% target requirements of the SASAC ahead of schedule.
Enrich the connotation of “new infrastructure”: promote the realization of network everywhere, computing power everywhere and intelligence everywhere. In terms of 5g, it has led 154 5g international standard projects, output more than 3600 5g patents, and built more than 700000 5g base stations, accounting for about 35% of the global 5g base stations, basically realizing good coverage of cities, counties, urban areas and key towns in China. Release the value of “new elements”: create a new growth model driven by digital intelligence. Stimulate the potential of “new kinetic energy”: the integration of “real, virtual and soft” enhances the new kinetic energy of economic and social development. Yang Jie expects that by the end of the 14th five year plan, that is, 2025, China’s communication service revenue will reach 1.6 trillion yuan, information service revenue will reach 20 trillion yuan, and digital economy revenue will reach 65 trillion yuan. At that time, China Mobile will strive to achieve a revenue scale of more than trillion. We believe that mobile continues to expand investment in the network field, which is beneficial to relevant companies in the communication equipment industry. At the same time, expanding the scale of 5g users will help to improve ARPU value and thicken business performance. Suggestion: China Mobile.
III. Xiaomi cut into the layout of automatic driving field. Recently, Beijing Xiaomi Mobile Software Co., Ltd. disclosed a patent on automatic driving. Tianyancha patent summary shows that the patent provides an automatic driving method, equipment and storage medium. The degree of automation of automatic driving is high and the user experience is good. Xiaomi’s automatic driving patent enables the target vehicle to automatically adjust its own automatic driving ability level according to the road level of the current road, so as to improve the automation of automatic driving and improve the user experience.
Xiaomi’s original intention is to use high-quality intelligent electric vehicles to let users enjoy the ubiquitous intelligent life. In the future, Xiaomi will provide a smart life for the omni-directional scene of rice noodles from personal equipment, smart home, smart office and smart travel. In the future, we also hope that Xiaomi cars will be equipped with a full set of intelligent products on every road. We believe that with the gradual maturity of automatic driving technology and strong promotion of the industrial chain, automatic driving is expected to usher in an outbreak. As an important sensing device, lidar is about to usher in an outbreak with the decline of mass production price. It is suggested to pay attention to: torch technology, Optowide Technologies Co.Ltd(688195) .
Industry highlights
\u3000\u30001. The EU provided 258 million euros for 5g, cloud infrastructure and Gigabit networks
According to mobile world live, the European Commission (EC) invites interested parties to bid for new funds aimed at improving 5g, cloud infrastructure and high-speed Gigabit networks across the EU. The proposal solicitation comes from the digital part (CEF digital) of “connecting European Fund”, a key EU financing tool. By 2027, the total planned budget of CEF digital will reach 2 billion euros. The entire connect Europe Fund project supports investment in cross European digital, transport and energy networks, valued at € 33.7 billion from 2021 to 2027.
\u3000\u30002. Twelve departments including the Ministry of industry and information technology started the pilot demonstration of the application of network security technology
Twelve departments recently launched the pilot demonstration of the application of network security technology. The pilot demonstration focuses on the network security needs of public communication and information services, energy, transportation, water conservancy, emergency management, finance, medical treatment, radio and television and other industries, and is oriented to cloud computing security, artificial intelligence security, big data security, Internet of vehicles security, Internet of things security, smart city security, network security common technologies, network security innovation services The network security “sophisticated” technological innovation platform has a total of 28 typical scenes in 9 directions, setting direction tracks to lead enterprise innovation breakthroughs and help improve the ability of industrial coordinated development.
\u3000\u30003. American APTIV company announced the acquisition of WinDriver for us $4.3 billion, aiming at the future of software defined vehicles
American auto parts supplier APTIV announced that it would acquire WinDriver from TPG capital for $4.3 billion in cash. Wind River will operate as an independent business unit of APTIV’s advanced security and user experience (as & UX) department. The acquisition will enable APTIV, with more than 180000 employees, to reach Wind River’s telecom customers, such as ciena, Ericsson, T-Systems, Verizon and Vodafone, as well as wind river’s customers in aerospace, defense, industrial / energy, medical and automotive industries. Wind River’s cloud native edge computing software is used on more than 2 billion edge devices by more than 1700 customers around the world. In addition, Wind River generated nearly $400 million in revenue in 2021. APTIV plans to combine the services of Wind River studio with APTIV’s SVA platform to develop new automotive software.
Recommended this week: 5g construction leader [ Zte Corporation(000063) ]; US sanctions upgrade domestic substitution acceleration and warming of super SIM card sales [ Unigroup Guoxin Microelectronics Co.Ltd(002049) ]; Benefiting from the rapid growth of intelligent controller industry [ Shenzhen Topband Co.Ltd(002139) ]; Fast and large-scale [ Fibocom Wireless Inc(300638) ] and [ Meig Smart Technology Co.Ltd(002881) ] of IOT module; Beidou industry solution leader [ Shanghai Huace Navigation Technology Ltd(300627) ]; Benefit from the explosion of energy storage and charging charges [ Longshine Technology Group Co.Ltd(300682) ].
Long term recommendation: 5g main equipment and infrastructure: Zte Corporation(000063) ; Optical communication: Suzhou Tfc Optical Communication Co.Ltd(300394) , Zhongji Innolight Co.Ltd(300308) , Eoptolink Technology Inc.Ltd(300502) , Accelink Technologies Co.Ltd(002281) , Broadex Technologies Co.Ltd(300548) ; Advanced Fiber Resources (Zhuhai) Ltd(300620) ； Optowide Technologies Co.Ltd(688195) , Juguang technology; Radio frequency: Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) ; Benefit flow explosion: Fujian Star-Net Communication Co.Ltd(002396) , New Guomai Digital Culture Co.Ltd(600640) , Wangsu Science & Technology Co.Ltd(300017) ; Internet of things: Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) , Meig Smart Technology Co.Ltd(002881) , Hanwei Electronics Group Corporation(300007) , Queclink Wireless Solutions Co.Ltd(300590) . IDC direction: Beijing Sinnet Technology Co.Ltd(300383) , Shanghai Athub Co.Ltd(603881) , Shanghai Baosight Software Co.Ltd(600845) , Guangdong Aofei Data Technology Co.Ltd(300738) ; 5g messages: Montnets Cloud Technology Group Co.Ltd(002123) , Zjbc Information Technology Co.Ltd(000889) , Wutong Holding Group Co.Ltd(300292) ; Industrial Internet: Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ; Intelligent controller: Shenzhen H&T Intelligent Control Co.Ltd(002402) , Shenzhen Topband Co.Ltd(002139) . Energy storage is related to new energy: Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) , Kehua Data Co.Ltd(002335) , Longshine Technology Group Co.Ltd(300682) .
Risk tips
(1) systemic risk caused by the unexpected decline of the market;
(2) focus on the uncertainty risk of promoting relevant matters of the company.
