On November 7, the A-share 5G concept stocks broke out collectively. Among them, the leading stock ZTE hit a new high since July. Compared with the closing price on July 11, the overall rebound of ZTE has reached 66%.
For the reasons for the surge in 5G concept stocks yesterday, Securities Times reporter interviewed a number of brokersAnalystThe general view is that the industry is booming or related to recent news that the industry rumors that 5G licenses will be issued at the end of this year. "Although this news is difficult to confirm, in the case of a warmer market, the investment in the future 5G cycle will be highly certain. From the situation of the third quarter report, the performance of communication companies is picking up, and the performance elasticity of concept stocks will enable the communications industry. Mid-term layout value," said an anonymous analyst.
Is the 5G license issued during the year?
The communications industry is waiting for the 5G network to open a new round of investment cycle. After the 5G license is issued, it means that the operator will start a new investment cycle for network construction.
Recently, it is reported that China's 5G license will be issued before the end of the year. According to reports, the Chinese Academy of Engineering academician He Hezhen said at the 2018 Guangdong-Hong Kong-Macau Dawan District Academician Summit and the 4th Guangdong Academician Summit Annual Meeting held on November 2nd: "At the end of this year, China may issue 5G licenses. Although 5G base stations It is now basically commercially available, but the terminal has to wait until the standardization is completed, and it needs to be commercialized, so it will take some time."
He Hezhen pointed out that from the perspective of 5G construction, China will not be later than developed countries, and once China is commercialized, it will surpass other countries because there are many Chinese users. He revealed that the international standardization process of 5G technology can be completed in September next year. Many countries plan to put into commercial use in the next year, such as Japan will officially use 5G when the 2020 Olympic Games will be held in Tokyo.
Yesterday, 5G concept stocks rose sharply, and many brokerage researchers thought or related to this news. "But the exact time for the issuance of 5G licenses is difficult to verify, and the news of licensing at the end of the year is more than expected." A senior researcher in the communications industry said.
In addition, the 5G concept is also active in relation to the recovery of industry performance. As the market fell further in the third quarter, the overall valuation of the communications industry was further reduced. The overall P/E ratio has fallen from the highest of 80 times at the beginning of the year to about 47 times, and the rebound in industry performance will further push the valuation down.
ZTE hits a new high
ZTE was affected by the US sanctions incident, and its share price once fell to a limit. On July 11, the stock price fell to 11.85 yuan. However, the dust of the sanctions incident was settled, and the main business of ZTE gradually recovered. With the gradual development of the domestic 5G trial network, investors' confidence in ZTE has rebounded, and its share price has gradually recovered. As of yesterday's close, ZTE's share price closed at 19.59 yuan, which also hit a four-month high of 20.68 yuan.
The three quarterly reports released by ZTE recently passed a positive signal. The third quarterly report disclosed on the evening of October 25 showed that the company completed revenue of 58.766 billion yuan in the first three quarters, down 23.26% year-on-year; while net profit was 7.26 billion yuan. However, the third quarterly report showed that ZTE began normal operations in the third quarter, achieving a net profit of 564 million yuan. At the same time, ZTE expects a net profit loss of 6.2 billion yuan to 7.2 billion yuan in 2018, and a profit of 4.568 billion yuan in the same period last year.
In response to the impact of the ban, ZTE proposed to strengthen cost control, focus on the main business and increase 5G investment in the second half of 2018. ZTE also demonstrated its strategic focus in its operations. On the evening of September 19, the company signed a cooperation framework agreement with Shenzhen Investment Holdings Co., Ltd. (referred to as “Shenzhen Investment Control”) to conduct trading on some of Shenzhen's property assets directly or indirectly held with Shenzhen Investment Holdings. Shenzhen Investment Holdings will pay the first phase of RMB 2.2 billion to the company within 3 working days after the agreement takes effect. This matter will help the company to further focus on its main business.
On the evening of October 31, ZTE announced that, in order to strengthen the company's product R&D investment, the company signed a “loan contract” and a “pledge contract” with the controlling shareholder Zhongxingxin on October 31. The company did not exceed the loan from ZTE. 1 billion yuan.
In the progress of 5G business. In October, at the 3rd 5G Innovation and Development Summit held in Beijing, ZTE's external display has taken the lead in completing the 3.5GHz system base station test and the core network full functional test. It is also the first manufacturer in the industry to complete all NSA low frequency testing. At the same time, ZTE publicly stated that it has fully prepared for the large-scale commercialization of 5G.
Yesterday, the reporter called ZTE on the new progress of 5G business and the recovery of the company's operation. The company declined the interview request.
(Article source: Securities Times)