Looking into the fourth quarter, investment opportuniti […]
Looking into the fourth quarter, investment opportunities in the telecommunications industry are expected to continue to focus on excellent growth (focusing on optical communications and cloud computing) and theme investments (5G, military communications, Internet of things, state-owned enterprise reform, and traffic management).
(1) 5G: New Opportunities for Optical Communication, RF Devices, Antennas and Small Base Stations
In 2018-2019, the establishment and freeze of international standards will be completed, and commercial trials will be officially promoted in 2020. 5G will bring network infrastructure guarantees from "ideal to reality" to the popularization of application scenarios such as car networking, VR/AR, and holography. Ultra-dense base station networking, large-scale antenna arrays, and wide spectrum are the core points for increasing 5G capacity; 5G will be brought from three directions: optical communication, radio frequency devices (stepwise integration of antennas, and application of MiMO multi-antenna technology), and small base stations. Important investment opportunities, some 5G technologies will be used in advance on the existing network. a. The optical communication industry still serves as the first quarterly direction. In 2016, our main push of optical communications sector is raging. We have also seen multiple perspectives such as “traffic outbreaks, carrier network capacity crisis”, “leftovers as king, competition landscape optimization” and “China's rise of optical communication industry chain”. With the release of research in the optical communications industry, 5G will usher in even-larger traffic peaks. Optical communication, continue devaluing the industrial chain of optical devices and optical network equipment, debuting optical technology, followed by Fiberhome Communications, Xinyisheng, ZTE, focusing on China International Equipment (acquisition of Suzhou Xuchuang); optical fiber and cable, maintaining Hengtong Optoelectronics Such as the optical fiber integrated leader of the recommended rating, concerned about Hong Kong stock long-fei fiber.
b. Direction of RF devices and antennas, with focus on Wuhan Fangu, followed by Tongyu Communications, Shenglu Communication, Hong Kong Stocks, Mobi Development, etc.; Small Base Stations, focusing on Hong Kong Stocks Beijing Communications. In the past, the military-based high-frequency RF device market ushered in a new opportunity for the civilian market (5G is dominated by high-frequency bands). The high-frequency area of intelligent terminal filters has brought about an important incremental market due to 5G. Science and technology, Sunlord Electronics' future breakthrough in this field.
(2) Cloud computing: The rapid development of the private and hybrid cloud domestic market, leading the dual channel leading and technologically advanced layout continues to recommend Digital China, a leader in cloud computing technology, and a leading cloud computing technology centered on the complete distribution of the cloud computing industry. At the same time, benefiting the cloud computing industry and the high-growth IDC & CDN sector, we maintain the recommendation of ChinaNetCenter, China Star Ventures, and Kehuan Hengsheng, focusing on high-rising holdings and the new Halo network.
(3) Military communications, Internet of Things, state-owned enterprise reform, and traffic management are expected to remain the subject of investment in the fourth quarter. The military communications focus on Haifeng, the leader of Haiphong Information Technology. The Internet of Things focuses on application scenarios such as sensors, industrial and water applications, and platform-based companies, and maintains the recommendation of China Taiyue and Yitong Century, and focuses on Sanchuan’s wisdom. State-owned enterprise reform, centered on asset integration and mixed ownership, focuses on China Unicom, Nanjing Panda (Suspended, CEC), Jiesai Technology (CETC), Dongfang Telecom, and Baibai Holdings; Starnet Ruijie (suspended), concerned about the beacon electronics. Traffic Operations focuses on SI service providers with operational traffic trading platform capabilities and other third-party traffic trading platform companies with pre-emptive advantages and a certain user base. The proposed order focuses on Maoye Communications, creative information, Monternet Rongxin, and Gaohong Securities. , as well as Tong Ding Internet, Wu Tong Holdings.