The application scenario continues to expand, and 5G technology breeds investment opportunities in the new era (Dongwu Securities)
Dongwu Securities pointed out that the mobile broadband traffic in different times is exponential growth from 2G era to 3G era and then to 4G era. In the coming 5G era, the total mobile Internet access traffic and the per capita mobile Internet access traffic will usher in the next round of growth.
According to the statistics of China Internet Information Center, by the middle of 2018, the number of Chinese netizens was about 802 million, an increase of 3.8% compared with the same period in 2017, and the Internet penetration rate reached 57.7%. In the first half of 2018, China’s micro-blog user size and usage, in the first half of 2018, China’s micro-blog user size is 337 million, accounting for 42.1% of the total number of users.
Dongwu Securities pointed out that in the 5G era, China has entered the first echelon in the world, and China has played a leading role in the direction of 5G technology and standardization. According to Netscribes statistics, after 2015, with the high R&D investment of Huawei and ZTE, China’s patent proportion in 5G patent pool reached 32%, which is in the leading position in the world.
According to the calculation of Dongwu Securities, 5G network construction will directly stimulate investment of about 120 billion yuan. At the same time, according to the White Paper on the Economic and Social Impact of 5G of CITIC, the GDP indirectly driven by 5G will reach 3.6 trillion yuan by 2030. According to the correlation between industries, GDP growth indirectly driven by 5G will exceed 419 billion yuan in 2020; GDP indirectly driven by 2025 will reach 2.1 trillion yuan; GDP indirectly driven by 5G will increase to 3.6 trillion yuan in 2030.
According to the experience of the development of the 4G era, the industrial application lags behind the network construction in some degree. The application of large-scale popularization lags behind the network construction of operators for two to three years. Dongwu Securities pointed out that 5G will have a wide range of applications in the future, depending on the characteristics of high-speed broadband, low delay, high reliability and low power consumption. It is expected that 5G will play an important role in power, agriculture, transportation, manufacturing and other fields. At the same time, the application development in 5G era will also depend on the formed network and popular intelligent terminals. It is estimated that the penetration of 5G will take two to three years to reach the level of supporting large-scale applications.

Dongwu Securities continues to firmly look forward to 5G investment opportunities. It is suggested that attention should be paid to beacon fire communication (600498.SH), China Unicom (600050.SH), optical switching and optical devices: Xinyisheng (300502.SZ), optical fast technology (002281.SZ), etc. Wireless Industry Chain: Shengyi Technology (600183. SH), Shanghai Telecom (002463. SZ) and so on. Fiber optic cable: Hengtong Photoelectric (600487. SH), Zhongtian Technology (600522. SH), etc.