Important industry trends this week:
The State Council issued the 14th five year plan for the development of digital economy to accelerate the construction of gigabit optical fiber broadband and cloud computing integration of data centers.
Recently, the State Council issued the “14th five year plan” for the development of digital economy. According to the plan, the number of Gigabit broadband users will increase from 6.4 million in 2020 to 60 million in 2025, with a growth scale of nearly 8.3 times. Looking forward to the future, under the guidance of national policies, the Gigabit users of the three major operators are expected to develop continuously and stably, and the digital economy industry derived from Gigabit broadband will burst out with greater vitality. We believe that 1) the Gigabit network planning will accelerate the expansion and speed-up deployment of optical fiber network, continue to promote the construction of a new generation of optical transmission network with super large capacity, super long distance and intelligent dispatching, and the comprehensive coverage of optical fiber network in sunken villages and towns; 2) The access terminal boxes of GPON and 10gpon, as well as the optical modules / splitters / optical chips of the industrial chain will benefit.
In addition, the plan also proposes to promote the development of cloud network collaboration and computing network integration, accelerate the construction of a national integrated big data center system for the collaboration of computing power, algorithms, data and application resources, build a data center cluster, accelerate the implementation of the “East data and West computing” project, and improve the cross network and cross regional data interaction ability of the data center, Strengthen the edge computing capability for specific scenes, and strengthen the overall planning and intelligent scheduling of computing power.
Investment view this week:
Looking forward to 2022, we will focus on the track of high prosperity and the target of low / undervalued value + reversal logic. In the near future, we will pay attention to the annual report & the first quarterly report, which exceeds the expected target. Key focus: applications in subdivided fields such as communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and industrial Internet have entered the stage of accelerated development, and the growth logic is clear. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. It is recommended to pay attention to: Internet of things / smart car, optical fiber cable / submarine cable, military communication, main equipment, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the marine and new energy sectors have full potential, and the business cycle of optical fiber and optical cable is opened), Hengtong Optic-Electric Co.Ltd(600487) (dual drive of marine + optical fiber and optical cable), Jiangsu Etern Company Limited(600105) (optical communication recovers, and the automobile harness opens the incremental space). It is recommended to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise simultaneously);
3. Optical modules & optical devices: Zhongji Innolight Co.Ltd(300308) (global digital communication optical module leader), Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) , Broadex Technologies Co.Ltd(300548) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Hebei Sinopack Electronic Technology Co.Ltd(003031) , T&S Communications Co.Ltd(300570) , Cig Shanghai Co.Ltd(603083) ;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / Internet of vehicles: key recommendations: Skyworth Digital Co.Ltd(000810) (Intelligent cockpit + metauniverse VR, combined coverage of household appliances), Shenzhen Topband Co.Ltd(002139) (intelligent controller + energy storage), Fibocom Wireless Inc(300638) , Hanwei Electronics Group Corporation(300007) (combined coverage of machinery), Queclink Wireless Solutions Co.Ltd(300590) , Quectel Wireless Solutions Co.Ltd(603236) , Willfar Information Technology Co.Ltd(688100) (combined coverage of machinery), Meig Smart Technology Co.Ltd(002881) , Cubic Sensor And Instrument Co.Ltd(688665) (combined coverage of machinery); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Shenzhen Neoway Technology Co.Ltd(688159) , Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendations: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix), Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the potential of ocean and new energy sector is full, and the business cycle of optical fiber and cable is started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: key recommendations: Kehua Data Co.Ltd(002335) (joint coverage of power and new technology), Runjian Co.Ltd(002929) (leading private communication network management and maintenance, key breakthrough in photovoltaic operation and maintenance), Beijing Sinnet Technology Co.Ltd(300383) . It is recommended to pay attention to: Unisplendour Corporation Limited(000938) , Shenzhen Envicool Technology Co.Ltd(002837) , Guangdong Aofei Data Technology Co.Ltd(300738) , Beijing Highlander Digital Technology Co.Ltd(300065) (UDC), Shanghai Athub Co.Ltd(603881) ;
IV. military communication & Beidou: communication is a serious short board in the field of national defense informatization. The penetration rate of ultrashort wave and area width can be improved. It is recommended to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ;
V. digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) .
Risk tip: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the recommendation speed of downstream applications is lower than expected, and the risk of trade war is uncertain.
