Last week's market performance: Last week, the Shanghai Composite Index fell 1.78%.Shanghai and Shenzhen 300The index fell 1.81%, and the small and medium board index fell 3.77%.GEMThe number fell 4.59%. In the same period, the communications industry (Shenwan) fell 2.32%, which was less than the small and medium-sized board index. Among the sub-sectors of the communications industry, communications equipment fell by 1.96% and communications operations fell by 4.70%. From the horizontal comparison of the industry, the top five industries in the increase are automobiles, household appliances,food and drink,Agriculture, forestry, animal husbandry and fisheries,UtilitiesAmong them, the car's increase was 1.84%, and the communications industry ranked 16th. From the stocks, the top five companies that rose last week were*ST Van Valley,Sichuan Jinding,Star network Ruijie,Yongding shares,Three changes technologyThe top five companies that fellDigital technology,Tianhai Defense,CITIC Guoan,Shennan shares,Tianze Information. In terms of valuation, as of this week, the telecommunications industry's P/E ratio (TTM) is 41.05X, and the communication operation and communication equipment P/E ratio are 49.59X and 39.21X respectively, and the price-earnings ratio ranks second in the TMT industry.
Industry important news: Ke Ruiwen took officeChina TelecomParty secretary and chairman. South Korea has built over 85,000 5G base stations and 90% of them are located in five major cities such as Seoul. Samsung said it has provided over 50,000 5G base stations to Korean operators. Japan officially allocated 5G spectrum to operators and plans to start commercial services in 2020. The results of the selection of wireless network optimization services collected by Gansu Mobile from 2019 to 2020 were publicized, and three communication companies of Huawei, ZTE and Datang Mobile won the bid. Huawei's intelligent computing ranked third in the Gartner2018Q4 server market report, with the highest growth rate.China UnicomJoin hands with Huawei to complete the 5G indoor coverage field verification in the industry and jointly promote the 5G indoor network construction standards. Unicom landed the first 5G smart medical application demonstration base in Shanghai.
Investment advice this week: March 4th,China TelecomFormer chairman and party secretary Yang Jie transferredChina MobileChairman and Party Secretary; On April 10, Ke Ruiwen became the party secretary and chairman of China Telecom. along withChina MobileAfter the adjustment of the management of China Telecom, the follow-up work will be gradually carried out, and the 5G construction will be actively promoted under the stimulation of the 5G commercialization of the United States and South Korea. Continue to recommend 5G standard equipment manufacturersZTE, telecommunications optical module faucetGuangxun Technology;IDC/Cloud Computing Quality EnterpriseHalo New Network; the leading manufacturer of unified communications marketYilian NetworkOptical device manufacturerTianfu Communication. Recommended attentionMergerOptical moduleCambridge TechnologyBase station side related target, antenna manufacturerTongyu Communication,filterSega TechnologyPCB manufacturerShennan circuit,Hudian sharesConnector manufacturerYihua shares.
Risk warning: 5G industrialization is not as expected.
(Article Source:Northeast Securities)