The Shanghai Composite Index returned to 3,000 points, and communication led artificial intelligence
Edited by: Peng Shuiping
On Tuesday (February 27), A-shares opened low and went high, and the market rose further in the afternoon, with the Shanghai Composite Index rising more than 1% to stabilize at 3,000 points, the Shenzhen Component Index and the ChiNext Index rising more than 2%, and the Beijing Stock Exchange 50 rising more than 5%. Northbound funds have significantly "increased" their positions by more than 10 billion yuan. More than 5,000 shares rose in the market, and more than 100 stocks rose to the limit. The Shanghai Composite Index closed up 1.29% at 3,015.48 points, the Shenzhen Component Index rose 2.24% to 9,269.57 points, the ChiNext Index rose 2.41% to 1,793.98 points, the Science and Technology 50 Index rose 3.7% to 796.91 points, the Beijing Stock Exchange 50 Index rose 5.21%, Wind All A rose 1.95%, and Wind Shuangchuang rose 3.09%. The market turnover exceeded one trillion yuan, the first time after the Spring Festival, and the actual net purchase of northbound funds was 12.248 billion yuan.
Source: Wind
The first year of 5G-A commercialization has arrived, the concept of 6G has strengthened, and the communication ETF (515880) rose 6.7% on February 27.
Source: Wind
At the Mobile World Congress (MWC24), which opened on February 26, Huawei showcased a full range of 5G-A (5.5G) product solutions for all scenarios, including 5G-A, F5G-A, and Net5.5G. 5G-A will improve the network experience and bring new applications in V2X and XR-Pro holography. Huawei said that 2024 will be the first year of 5G-A commercialization. In addition, Huawei has officially released the first large-scale model in the communications industry, which is understood to be useful for telecom operators to improve O&M efficiency. ZTE, China Information Technology and other companies will also present their latest innovations in 5G-A technology at MWC24, as well as launch products and solutions. (The mention of individual stocks is only to illustrate the views of the industry and does not constitute investment advice, the same below)
Also at MWC24, NVIDIA spearheaded the AI-RAN Alliance, which aims to integrate AI technology into the telecom industry, improve mobile network efficiency, reduce power consumption, transform existing infrastructure, and unlock new economic opportunities for telcos with AI in the 5G and upcoming 6G era. The alliance also includes tech giants such as Microsoft, Amazon, Samsung, Nokia, and ARM, and major telecom companies are expected to move closer to it. The industry believes that the AI-RAN alliance is expected to bring AI from the cloud to the end, and it is expected that the computing intensity of base station equipment may be further increased in the future, which will increase the demand of power chips, ASICs, cooling, network news equipment and system integration manufacturers.
In addition, on the news side, 10 countries including the United States and the United Kingdom issued statements supporting the development principle of 6G networks. These principles encompass the protection of trustworthy technology and national security, inclusive global industry-led standards development and international cooperation, and affordability, sustainability, and global connectivity. Previously, the International Telecommunication Union (ITU) has released the 6G standard and unlimited interface technology framework, and in China, China Unicom has completed the prototype test of the key technology of the 6G mobile computing network, which provides an important reference for the establishment of the key technology development direction and technical route of the 6G network.
Fundamentally, since the beginning of the year, the communication economy has been in good shape, and the penetration rate of 5G has increased. According to the statistics of the Ministry of Industry and Information Technology, the cumulative access traffic of mobile Internet users during the Spring Festival this year reached 6.745 million TB, an increase of 21.7% (+15.4pct) compared with the Spring Festival in 2023. The access traffic of 5G mobile Internet users has increased significantly, increasing by 72.7% compared with the Spring Festival in 2023 on a comparable basis, accounting for 49.9% of the access traffic of mobile Internet users. As of the end of January this year, the total number of 5G package users of the three major operators exceeded 1.375 billion, and the 5G penetration rate exceeded 70%.
Sora has catalyzed the leading U.S. chip companies, but the reason why it took the lead in bringing up the market of the A-share communication sector is that the market share of mainland optical modules in the world accounts for more than 60%, and the leading optical communication companies in mainland China can even be supplied by overseas GPU chip leading companies. Wensheng video, computing power first. The mainland communication industry can directly participate in the big wave of computing power construction, obtain huge orders, and quickly convert them into performance.
In terms of valuation, the current price-to-earnings (TTM) ratio of the CSI All-Index Communication Equipment Index is 25.86x, which is at the 13.11% quantile in the past 10 years, and has a certain investment margin of safety. Interested investors can pay attention to the future investment opportunities of Communication ETF (515880).
Source: Wind
Computer ETF (512720) closed up 5.99% on February 27, focusing on AI, computing power, data elements and other directions.
Source: Wind
On the news side, recently, the State-owned Assets Supervision and Administration Commission of the State Council held a special promotion meeting on artificial intelligence of central enterprises on "AI empowerment industry renewal". The meeting emphasized that the central enterprises should put the development of artificial intelligence in the overall work, make overall plans, further promote industrial renewal, and accelerate the layout and development of the artificial intelligence industry. The meeting proposed to accelerate the construction of a number of intelligent computing centers and carry out AI+ special actions. At the meeting, 10 central enterprises signed a proposal, stating that they would take the initiative to open up artificial intelligence application scenarios to the society. Hualong Securities said that the domestic computing power base will be accelerated, and AI+ applications are expected to accelerate the empowerment of thousands of industries.
Previously, NVIDIA's quarterly report exceeded expectations, further boosting the market's confidence and enthusiasm for AI. Last week, Nvidia CFO Colette Kress said that more than 40% of the company's data center business revenue came from inference rather than training last year. This means that the deployment of AI models is advancing rapidly, and its speed is also faster than the market consensus expectation (for example, UBS estimated at the beginning of the year that the inference side will only contribute about 20% of NVIDIA's revenue next year). In particular, given that the performance requirements of chips on the inference side are significantly weaker than those for training, this trend may be beneficial to other related companies in the industry. Superimposed on the trend of domestic substitution, the domestic computing power industry chain may be the main line of investment with high certainty in the future.
In terms of data elements, since February this year, the mapping of data resources has been opened, and the development and utilization of public data will be strengthened. On the one hand, the steady progress of the industrialization process is expected to first bring about the improvement of mechanisms such as property rights confirmation, transactions, and authorization of data elements, and promote the recognition of revenues to bring about performance realization. On the other hand, investment in data infrastructure, which is the basis for data distribution and trading, is expected to expand further. Interested investors can pay attention to the future investment opportunities of Computer ETF (512720).
As one of the first downstream industries to benefit from AI technology, games and film and television also rose sharply on February 27, with the game ETF (516010) closing up 5.11% and the film and television ETF (516620) closing up 3.55%.
Source: Wind
The Wensheng video model represented by overseas Sora and the model with long text and multimodal understanding ability represented by Gemini1.5 mark an important breakthrough in the AI multimodal model; Reduce costs and improve efficiency in game development.
For industries such as gaming and film and television, which require a great visual experience, advances in AI technology can make them even better. For example, in the future, AI can make more realistic and engaging virtual characters and game effects, giving viewers and gamers a better experience. In the production of "Ode to a Thousand Autumns", the AI model can quickly generate many elements such as characters and scenes according to some pictures and prompts, which makes the production speed even faster.
At the same time, AI technology can also process large amounts of data for the gaming, film and television industries. For example, character actions and scene rendering in games, character animation and special effects production in movies and television, etc. With the help of AI technology, this data can be processed more efficiently, and the quality of production is expected to improve. In the production process of "Ode to a Thousand Autumn Poems", AI also learned a lot of knowledge of ancient poems, generated characters and scenes that fit the historical background, and made the entire cartoon more in line with traditional Chinese culture.
In addition to making games more realistic and movies and TV looks more enjoyable, AI technology is constantly coming up with new ideas to meet the needs and preferences of audiences. At this time, AI technology is like a treasure trove of ideas, which is expected to provide many new ideas and ways to implement them in these industries. For example, in the future, AI technology will make those computer characters (NPCs) smarter and more like real people in games, making players feel more realistic and exciting when playing games. In film and television, AI technology can also create some amazing visual effects and new ways of storytelling, making the audience feel more shocked and fresh when watching the film.
At the same time, the game industry and the film and television industry are one of the most certain directions for the implementation of AIGC to reduce costs and increase efficiency, and with the accelerated investment of the industry, industry changes such as cost reduction and efficiency improvement and gameplay innovation will be gradually reflected.
At the same time, on February 27, the National Press and Publication Administration released the February edition number, and a total of 111 games were approved this time, and the number of approvals exceeded 100 for three consecutive months (115 in January and 105 in December), a significant increase from 85-89 from January to November 2023. Under the normalization of the version number of the game itself, the supply cycle of the game industry has gradually opened. Moreover, Apple's MR is expected to become a catalyst for the explosion of related content ecology (games, film and television, etc.).
The bubble in the short-term industry has been basically cleared, with the high-quality domestic games + new business formats (small games, cloud games, MR games, video games, etc.) + the recovery of film and television downstream demand to drive the performance recovery, the follow-up long-term value or will be more prominent, you can continue to pay attention to game ETF (516010) and film and television ETF (516620).
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National Business Daily