The A-share market opened today, and the 5G sector has been strengthening all the way. As of the close, many stocks such as Yitong, Guanghetong, and ZTE rose by the daily limit.

On the news, on December 28, the 2021 National Industry and Information Technology Work Conference was held. Xiao Yaqing, Minister of Industry and Information Technology, said at the meeting that in 2021, the construction and application of 5G networks will be promoted in an orderly manner, 5G coverage in major cities will be accelerated, co-construction and sharing will be promoted, and more than 600,000 5G base stations will be built.

Compared with the number of new 5G base stations in 2020, my country's 5G infrastructure construction is accelerating.

At a press conference held by the State Council Information Office on the 24th, Wen Ku, spokesperson of the Ministry of Industry and Information Technology and director of the Information and Communication Development Department, said that the current 5G network construction is progressing steadily, and about 580,000 5G base stations will be added this year.

It is worth noting that since July this year, the 5G communication sector has been weakening. The National Securities 5G Index has fallen by more than 20% in the past four months, and the 5G concept has fallen by more than 10% in the past three months.

Yan Huichen and Huang Leping, an analyst at CICC, released a research report today, saying that looking back on 2020, the annual communication index fell by 9.6%, and the public offering reached a low allocation of 0.91% in 3Q20. The agency believes that the low price of 5G products, construction volatility and lack of applications, trade frictions and fluctuations in cloud capital expenditures have led to a decline in the growth rate of sub-sectors or even a year-on-year decline, which ultimately led to a downward shift in sector valuations.

Looking forward to 2021, the agency believes that the lack of applications is expected to lead to limited growth in capital expenditure of the three major operators. It is recommended to pay attention to the increase in 700MHz network investment in radio and television, which may drive the overall capital expenditure to increase by 10.5%-13.5%; The industrial chain links of 5G construction such as PCB, radio frequency, etc. It is recommended to lay out individual stocks in the sector before the operator's bidding.

Wanlian Securities released a research report on December 27 that, looking forward to 2021, the focus of investment in the communications industry should shift from the previous 5G technology level to the new market margin brought by 5G applications. It is recommended to pay attention to the cloud computing sector, the Internet of Things sector, and the satellite Internet sector with strong certainty and growth in the midstream of the industry chain.

China Galaxy released a research report on December 24, saying that from 2020, my country will enter the peak period of 5G network construction. The construction peak period is expected to last for 2-3 years, and the investment in 5G network construction is expected to gradually become clear. It is recommended to pay attention to operators China Unicom (600050), equipment manufacturers ZTE (000063) and Fiberhome (600498), and optical module manufacturers Zhongji Innolight (300308), Guangxun Technology (002281) and Eosun (300502).
Responsible editor: tzh


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