The three major operators reported in the middle of last Friday. The implementation of investment in the first half of the year and the plan for capital expenditure in the second half of the year have always been the focus of attention in the industry. Headed by China Telecom, telecom operators released information on increasing investment in broadband construction in the second half of the year.
Affected by this news, this week, the optical communication stocks reacted strongly. FiberHome Communications (600498, closing price of 32.25 yuan), Hengtong Optoelectronics (600487, closing price of 30.49 yuan), Zhongtian Technology (600522, closing price of 23.06 yuan) recently Several trading days have risen strongly.
China Telecom Adds Large-Scale Broadband Investment Last weekend, the three major telecom operators announced their 2010 interim results. In a situation where the performance of each of the companies is not too warm and not exceeding the previous expectations, some movements that are different from the usual ones have caused concern in the industry.
At the performance briefing held on the 25th, Wang Xiaochu, chairman and executive officer of China Telecom, made it clear that the company will add another 15 billion yuan in capital expenditures in the next two years to develop broadband services. Among them, the additional portion in the second half of this year will reach 5 billion yuan.
This effort is not small. China Telecom’s investment budget for the entire year is 39 billion yuan, and the new investment is equivalent to 38% of the budget for this year. In the first half of the year, it actually completed 17.92 billion yuan. In addition to continuing to implement the original broadband investment in the second half of this year, it will also add 50% of the same amount of investment in the first half of the year.
Another broadband service operator China Unicom (600,050, closing price of 5.07 yuan) has not explicitly released the data, but still expresses its willingness to increase investment in broadband in the interim report. The company stated that it will further increase its investment in fixed-line broadband in the second half of the year in order to maintain the rapid growth of this business. In the first half of this year, China Unicom's broadband business realized a revenue of RMB 12.09 billion, a year-on-year increase of 10.3%, which was the company's largest growth business. The ARPU (average revenue per user) reached 60.2 yuan, second only to the ARPU of 3G services.
Affected by this good news, optical communications stocks rose strongly this week. As of the 1st of the three trading days, FiberHome Communications rose nearly 14%, Xinhaiyi (002089, closing price of 20.46 yuan) rose nearly 17%, Ascension Technology (002281, closing price of 35.96 yuan) rose more than 8%, fiber optic cable Manufacturers Hengtong photoelectric, Zhongtian science and technology performance is also quite eye-catching.
Optoelectronics manufacturers benefit from the first step to increase the investment of operators, and the industry is regarded as a signal that the optical communications industry continues to maintain a high level of prosperity. Zhou Jun, an analyst at Orient Securities, said that China Telecom’s existing broadband investment plans for the current year and next year are roughly 8 billion yuan and 6 billion yuan respectively. This new investment of 15 billion yuan will double the annual optical communications expenditure from the second half of the year to next year. .
Telecoms and China Unicom, two carriers with broadband services, announced at this time that they would increase their investment in broadband. Zhou Jun believes that this shows that in the context of triple play, telecom operators will increase FTTX (fiber access) and other light. Communication investment is an inevitable trend.
Zhang Bing, an analyst at CITIC Securities, also stated that telecommunication's move reflects that operators have previously underestimated the demand for and pressure on the development of broadband, triple play, and other new services. Therefore, it is not ruled out that "the other two operators have also increased capital expenditures." .
And this expectation also extends to the entire communications equipment industry. According to data from the Ministry of Industry and Information Technology, China’s telecommunications infrastructure investment fell to a low point in the first half of the year after the blowout since the fourth quarter of 2008; domestic telecommunication investment dropped by as much as 30% year-on-year in the first half of the year, while mobile, China Unicom, and telecommunications actually The completion of investment progress was 50%, 45% and 46% respectively. Zhang Bing believes that in the face of industry-focused 3G investment, operators may also have inadequate capital expenditure plans in the early stage.
In the field of optical communications, it has been determined that additional investments will be made. With this, the relevant manufacturers will have a guarantee of performance for a period of time in the future. At present, A-share market optical communication vendors mainly include access network equipment ZTE Corporation (000063, closing price 25.00 yuan), FiberHome, Optoelectronics's Lite-On Technology, Suntech, Hengtong Optoelectronics in the field of optical fiber and cable, and wiring The daily communications (002313, closing price of 41.07 yuan) and Xinhaiyi, such as transfer boxes, racks, etc., are arranged in descending order of profit depending on the degree of benefit.
Affected by this news, this week, the optical communication stocks reacted strongly. FiberHome Communications (600498, closing price of 32.25 yuan), Hengtong Optoelectronics (600487, closing price of 30.49 yuan), Zhongtian Technology (600522, closing price of 23.06 yuan) recently Several trading days have risen strongly.
China Telecom Adds Large-Scale Broadband Investment Last weekend, the three major telecom operators announced their 2010 interim results. In a situation where the performance of each of the companies is not too warm and not exceeding the previous expectations, some movements that are different from the usual ones have caused concern in the industry.
At the performance briefing held on the 25th, Wang Xiaochu, chairman and executive officer of China Telecom, made it clear that the company will add another 15 billion yuan in capital expenditures in the next two years to develop broadband services. Among them, the additional portion in the second half of this year will reach 5 billion yuan.
This effort is not small. China Telecom’s investment budget for the entire year is 39 billion yuan, and the new investment is equivalent to 38% of the budget for this year. In the first half of the year, it actually completed 17.92 billion yuan. In addition to continuing to implement the original broadband investment in the second half of this year, it will also add 50% of the same amount of investment in the first half of the year.
Another broadband service operator China Unicom (600,050, closing price of 5.07 yuan) has not explicitly released the data, but still expresses its willingness to increase investment in broadband in the interim report. The company stated that it will further increase its investment in fixed-line broadband in the second half of the year in order to maintain the rapid growth of this business. In the first half of this year, China Unicom's broadband business realized a revenue of RMB 12.09 billion, a year-on-year increase of 10.3%, which was the company's largest growth business. The ARPU (average revenue per user) reached 60.2 yuan, second only to the ARPU of 3G services.
Affected by this good news, optical communications stocks rose strongly this week. As of the 1st of the three trading days, FiberHome Communications rose nearly 14%, Xinhaiyi (002089, closing price of 20.46 yuan) rose nearly 17%, Ascension Technology (002281, closing price of 35.96 yuan) rose more than 8%, fiber optic cable Manufacturers Hengtong photoelectric, Zhongtian science and technology performance is also quite eye-catching.
Optoelectronics manufacturers benefit from the first step to increase the investment of operators, and the industry is regarded as a signal that the optical communications industry continues to maintain a high level of prosperity. Zhou Jun, an analyst at Orient Securities, said that China Telecom’s existing broadband investment plans for the current year and next year are roughly 8 billion yuan and 6 billion yuan respectively. This new investment of 15 billion yuan will double the annual optical communications expenditure from the second half of the year to next year. .
Telecoms and China Unicom, two carriers with broadband services, announced at this time that they would increase their investment in broadband. Zhou Jun believes that this shows that in the context of triple play, telecom operators will increase FTTX (fiber access) and other light. Communication investment is an inevitable trend.
Zhang Bing, an analyst at CITIC Securities, also stated that telecommunication's move reflects that operators have previously underestimated the demand for and pressure on the development of broadband, triple play, and other new services. Therefore, it is not ruled out that "the other two operators have also increased capital expenditures." .
And this expectation also extends to the entire communications equipment industry. According to data from the Ministry of Industry and Information Technology, China’s telecommunications infrastructure investment fell to a low point in the first half of the year after the blowout since the fourth quarter of 2008; domestic telecommunication investment dropped by as much as 30% year-on-year in the first half of the year, while mobile, China Unicom, and telecommunications actually The completion of investment progress was 50%, 45% and 46% respectively. Zhang Bing believes that in the face of industry-focused 3G investment, operators may also have inadequate capital expenditure plans in the early stage.
In the field of optical communications, it has been determined that additional investments will be made. With this, the relevant manufacturers will have a guarantee of performance for a period of time in the future. At present, A-share market optical communication vendors mainly include access network equipment ZTE Corporation (000063, closing price 25.00 yuan), FiberHome, Optoelectronics's Lite-On Technology, Suntech, Hengtong Optoelectronics in the field of optical fiber and cable, and wiring The daily communications (002313, closing price of 41.07 yuan) and Xinhaiyi, such as transfer boxes, racks, etc., are arranged in descending order of profit depending on the degree of benefit.
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