CITIC Securities: The fundamental upward turning point of the communications industry is expected to be further confirmed

According to the Securities Times Internet News, CITIC Securities pointed out that the overall performance growth of the communications industry has rebounded and the cash flow is stable, combining the 2020 annual report and the 2021Q1 financial report. Looking forward to the 2021 mid-year report, the basic upward turning point of the communications industry is expected to be further confirmed. The continued high growth of IoT leaders is expected, the profitability of communication equipment is expected to gradually improve, the performance of IDC leaders continues to grow rapidly, and the prosperity of cloud video continues to rise . The current communications valuation as a whole is at the bottom of history, and it is expected that valuation restoration and value revaluation will gradually usher in. It is recommended to focus on leading industry segments such as 5G, cloud computing, IDC, optical modules, cloud communications, and the Internet of Things: including China Unicom (A+H), ZTE, Baosight Software, Sinnet, Zhongji Innolux, New Esunny, Yealink, Holtek, Guanghetong, Quectel, Kehua Data, etc.