This week, the digital economy has become the focus of the market. We believe that after the setting of the digital economy, the subsequent significant growth of traffic is a deterministic direction, and the expansion of infrastructure supporting traffic is a rigid demand, which will be highly deterministic in the next three to five years. Overseas, as Internet giants such as Facebook enter the meta universe, the capital expenditure on the overseas digital communication side is also expected to usher in a new turning point. It is suggested that investors actively pay attention to high-quality stocks in the flow side industrial chain from IDC to optical module, such as optical module leader Eoptolink Technology Inc.Ltd(300502) , optical device leader Suzhou Tfc Optical Communication Co.Ltd(300394) , IDC leader Guangdong Aofei Data Technology Co.Ltd(300738) . At the same time, with the disclosure of performance forecasts in 2021, we suggest investors to actively pay attention to high-quality growth leaders and industry core assets with steady growth, such as Meig Smart Technology Co.Ltd(002881) , Yealink Network Technology Co.Ltd(300628) , Fibocom Wireless Inc(300638) .
This week’s core recommendations:
\u3000\u30001. High quality leading companies on the flow bearing side: Eoptolink Technology Inc.Ltd(300502) 300502, Suzhou Tfc Optical Communication Co.Ltd(300394) 300394
\u3000\u30002. High quality companies with steady growth performance: Meig Smart Technology Co.Ltd(002881) 002881, Fibocom Wireless Inc(300638) 300638, Yealink Network Technology Co.Ltd(300628) 300628
Continue tracking: (1) green communication: Jiangsu Zhongtian Technology Co.Ltd(600522) 600522, Hengtong Optic-Electric Co.Ltd(600487) 600487, Shenzhen Envicool Technology Co.Ltd(002837) 002837, Shenzhen Cotran New Material Co.Ltd(300731) 300731. （2）IDC： Guangdong Aofei Data Technology Co.Ltd(300738) 300738、 Kehua Data Co.Ltd(002335) 002335、 Beijing Sinnet Technology Co.Ltd(300383) 300383. (3) Optical module: Zhongji Innolight Co.Ltd(300308) 300308. (4) Communication infrastructure: Zte Corporation(000063) 000063. (5) Military communication: Tianjin 712 Communication & Broadcasting Co.Ltd(603712) 603712. (6) Industrial Internet: Nengke 603859.
Flow side investment opportunities in the digital economy. This week, the digital economy has become the focus of the market. We believe that after the setting of the digital economy, the subsequent significant growth of traffic is a deterministic direction, and the expansion of infrastructure supporting traffic is a rigid demand, which will be highly deterministic in the next three to five years. Overseas, as Internet giants such as Facebook enter the meta universe, the capital expenditure demand on the overseas digital communication side is also expected to usher in a new turning point. It is suggested that investors actively pay attention to high-quality stocks in the flow side industrial chain from IDC to optical module, such as optical module leader Eoptolink Technology Inc.Ltd(300502) , optical device leader Suzhou Tfc Optical Communication Co.Ltd(300394) , IDC leader Guangdong Aofei Data Technology Co.Ltd(300738) . At the same time, with the disclosure of performance forecasts in 2021, we suggest investors to actively pay attention to high-quality growth leaders with steady performance growth, such as Meig Smart Technology Co.Ltd(002881) , Yealink Network Technology Co.Ltd(300628) , Fibocom Wireless Inc(300638) .
Gartner: China’s IT spending is expected to grow by 7.89% in 2022. According to c114, according to Gartner’s latest forecast, global IT expenditure is expected to reach $4.5 trillion in 2022, an increase of 5.1% compared with 2021; China’s it expenditure is expected to exceed US $540 billion, an increase of 7.89%.
Dell’Oro predicts that the global optical transmission equipment market is expected to reach US $18 billion by 2026. According to c114, dell’orogroup’s latest forecast report, the global optical transmission equipment market is expected to increase to $18 billion by 2026. All market growth will come from the sales of DWDM systems that provide wavelength speeds of more than 20gbps.
Risk tip: trade friction intensifies and 5g progress does not meet expectations.
