Key takeaways. SW communication industry's 2023 annual performance forecast GEM part of the disclosure rate is the highest, about 6250%。In terms of sub-sectors, the disclosure rates of the A-share main board, the ChiNext board, the Science and Technology Innovation Board, and the Beijing Stock Exchange are 5312%/57.71%/54.50%/4.51%。The disclosure rates of the main board of the SW communication industry, the ChiNext board, the Science and Technology Innovation Board and the Beijing Stock Exchange were 6167%/62.50%/50.00%/0.00%, the disclosure rate of the main board and ChiNext board is higher than the overall disclosure rate of the corresponding sector of A-shares, and the disclosure rate of the science and technology innovation board and the Beijing Stock Exchange is lower than the disclosure rate of the corresponding sector of A-share as a whole.
The performance forecast rate of SW communication industry is only 3038%, which is lower than the overall A-share market, but the performance improvement rate is close to half. From the perspective of the type of performance forecast, among the companies that disclose the performance forecast in the A-share market, there are 1,165 companies with a type of pre-happiness (a slight increase in pre-growth, continuous profit, and a slight increase in losses), accounting for 4173%。Among the 79 companies that have been disclosed in the SW communication industry, the number of companies with good performance (pre-growth, continued profit, turnaround loss, and slight increase) is 24, accounting for 3038%, the pre-happiness rate is lower than that of A-shares as a whole; The number of companies with performance worries (slightly reduced, pre-reduced, continued losses, and first losses) was 55, accounting for 6962%, of which 14 of the 22 companies that continued to lose money narrowed their losses, accounting for 63 of the companies that continued to lose money64%, accounting for 17 of the 79 disclosed companies in the SW communications industry72%。Therefore, if we consider the companies that have narrowed their losses, the overall performance improvement rate of the 79 companies disclosed in the SW communication industry is 4810%, close to half.
Nearly half of the companies on the profit side have improved year-on-year, and the head companies are expected to drive the overall substantial growth of the industry. Based on the median interval of the performance forecast, the total net profit attributable to the parent company of 79 companies in the SW communication industry is 565.9 billion yuan (yoy + 85..)65%）；The total net profit deducted from non-attributable to the parent company was about 398.7 billion yuan (yoy + 440..)61%), mainly due to the rapid growth of the performance of some large-scale leading companies and the significant narrowing of the losses of some companies. Among them, Hengtong Optoelectronics, Zhongji InnoLight and Runze Technology will all rank among the top three in terms of estimated net profit attributable to the parent company and net profit deducted from non-attributable to the parent company (median) in 2023, with a total of 616.7 billion yuan (yoy+53..)95%）/59.4.6 billion yuan (yoy + 60..)03%), we believe that the leading companies are expected to drive the overall growth of the profit side of the industry.
Investment strategy. According to the disclosure of the 2023 annual performance forecast of the SW communication industry, the overall profit side of the industry is expected to achieve a significant year-on-year growth, mainly benefiting from the performance growth of some large-scale leading companies and the significant narrowing of the losses of some companies. In terms of subdivisions, it is recommended to pay attention to the demand for computing power, optical modules and other industries in the data element industry chain and AI large models, and it is recommended to focus on leading enterprises in the fields of operators, equipment manufacturers, optical modules, and data centers.
The above is only used as a teaching case and does not constitute investment advice, and is for reference only.
Reference**: February 22, 2024 Wanlian** Communication Industry Tracking Report: Nearly half of the companies on the profit side have improved year-on-year, and the industry as a whole is expected to grow significantly.
Special Disclaimer: The content of the article is for reference only and does not constitute investment advice. Investors act accordingly at their own risk.
This article is edited by investment consultant: Shang Yaxiong a1290623030001.