Communication industry dynamics tracking: Optical fiber and cable market continues, focus on blockchain events catalysis

Introduction: Abstract: Last week, the market basically maintained the level of the previous week, with large-cap stocks leading the market, and the communications sector fell. Last week, the market fell slightly by 0.1%, closing at 3067 points. The communications industry sector fell by 1.3%, underperforming the market. From the perspective of sub-industry indexes, the optical communications sector performed best, falling slightly by 0.2%. The Internet of Things sector fell by 1%, and the above sectors performed well...

Abstract : Last week, the market basically maintained the level of the previous week , with large-cap stocks dominating the market and the communications sector falling. Last week, the market fell slightly by 0.1%, closing at 3067 points. The communications industry sector fell by 1.3%, underperforming the market. From the perspective of sub-industry indexes , the optical communications sector performed best , falling slightly by 0.2% . The Internet of Things sector fell by 1%, and the above sectors performed better than the average level of the communications industry. The satellite communications and navigation sector fell by 1.3%, which was the same as the average level. The communications equipment sector fell by 1.4% . The mobile Internet , blockchain, and operator sectors fell by about 1.5% . The quantum communications and cloud computing sectors fell by 2% and 2.6% , respectively. The above sectors all performed worse than the average level.

China Mobile launched the centralized procurement of optical cables , the industry boom was confirmed , and Hengtong Optics hit a new record high. Recently, China Mobile announced the launch of the centralized procurement of ordinary optical cables ( first batch ) for 2016-2017 , corresponding to the procurement volume of 61.14 million core kilometers from November 2016 to February 2017 , which is in line with our expectations. In terms of the performance of related stocks , Hengtong Optics led the communication sector's increase list this week , reaching 14.22%, and set a new record of 20.78 yuan . We look forward to the announcement of the purchase price of optical fiber cables in October .

Precision traffic operation has reached the critical point of market explosion. The market still lacks awareness of precision traffic operation and ignores the market prospects of precision traffic operation. We believe that B2C precision traffic operation based on big data has reached the critical point of market explosion , and the market is expected to exceed 60 billion yuan. In this report , we have answered the current market concerns one by one and continue to be optimistic about the theme of precision traffic operation.

The favorable conditions of blockchain are coming one after another , and the momentum is unstoppable. The official publication of the central bank discussed digital currency and affirmed blockchain technology for the first time ; China Merchants Bank became the second Chinese member of the R3 blockchain alliance ; the first blockchain new financial summit will be held next week. In the second half of the year, there will be continuous catalysts in the blockchain field, such as the joining of authoritative institutions, the convening of official seminars, and the release of domestic blockbuster products . It is recommended to actively seize this major trend in the field of science and technology.

Huawei's first All-Connect Conference opened , and industry leaders gathered together. The first global annual flagship conference Huawei Connect 2016 was held in Shanghai. More than 20,000 industry elites from more than 120 countries and regions discussed the trends and insights of the cloud era around the theme of "Shaping the Cloud Era", and how all industries can actively achieve digital transformation by building cloud technology and building a cloud ecosystem . The conference elaborated on the use scenarios and needs of various cloud technologies , and suggested continuing to track relevant developments in the field of cloud computing.

This week's recommendations are mainly for steady growth , with Hengtong Optics ( high growth rate confirmed in 2016, 40%-50% in 2017, 37 million core kilometers of optical fiber capacity , rod-fiber-cable integration ) . Also recommended : Creative Information ( as the main supplier of core network system integration for operators , with the strong support of ZTE , it will become a leading manufacturer of precise traffic operations and has broad development prospects ) , Wangsu Technology ( mid-term earnings exceeded market expectations ; at the same time, the managed cloud and community cloud innovation businesses have brought valuation improvements , making it a rare high-quality blue chip stock ) , etc.