2021.09.07
■ On average, shares prices of the telecommunications-related names were up 21.3%, outperforming the HSI’s -3.9% on a YTD basis. Upstream component names underperformed downstream names. Since our last update in mid-May 21, telecommunications-related names, on average, were up 17.8%, outperforming the HSI’s -6.7%.
■ China had built 993k 5G base stations as at the end of 8M21, and had 495.2m 5G package customers as at the end of 1H21, leading all other countries.
■ The Chinese telecom operators are expected to roll out the 5G network and monetize it through the development of new applications, according to their plans.
■ We maintain our cautious view on some upstream names, but remain constructive on midstream names, such as telecom equipment manufacturers (ZTE [0763.HK; ADD]), YOFC [6869.HK; ADD], downstream applications name (AsiaInfo [1675.HK; ADD]), and others such as CCS [0552.HK; ADD] and China Tower [0788.HK; ADD].
