Electrical Equipment / Components & Telecoms

Recently, the State Administration of Radio and Television issued the "Opinions on Further Accelerating the Development of High-Definition and Ultra-High-Definition TV", which put forward the overall goal. Basically shut down, high-definition TV has become the basic TV broadcast mode, and the supply of ultra-high-definition TV channels and programs has formed a scale. The broadcast and TV transmission coverage network has significantly enhanced the carrying capacity of HD and UHD TV, and HD and UHD TV receiving terminals are basically popularized.

In recent years, with the continuous introduction of high-definition and ultra-high-definition industry support measures, the sector has embraced the policy trend. In October 2021, the State Administration of Radio and Television issued the "14th Five-Year Plan for the Development of Radio, Television and Online Audio-visualization", proposing to accelerate the process of promoting high-definition and ultra-high-definition of live satellite radio and television programs; to accelerate the production and broadcasting capabilities of high-definition and ultra-high-definition TV Development tasks such as construction and high-definition transformation of TV channels.

Under the policy increase, the ultra-high-definition video industry chain is also continuously expanding. According to the "Ultra HD Video Industry Development Action Plan (2019-2022)" issued by the Ministry of Industry and Information Technology and other three departments, it is estimated that by 2022, the overall scale of the ultra-high-definition video industry will exceed 4 trillion yuan, and the total number of ultra-high-definition video users will reach 200 million. .

In 2022, domestic and foreign set-top box shipments will grow steadily

According to Glenn Research's "2021 China Set-Top Box Quarterly Analysis Report", the global shipment of set-top boxes in 2021 will increase by more than 30 million units compared with 2020, a year-on-year increase of 10.9%. Among them, foreign set-top boxes accounted for more than 76%. In 2022, the shipment of set-top boxes at home and abroad will continue to maintain steady growth, and as Europe, Africa and other regions speed up the upgrading and conversion of set-top boxes, it will further drive market demand.

In the domestic market, in 2021, the overall new shipments of set-top boxes in China will exceed 72 million units, a year-on-year increase of 8.4%. Among them, OTTTV (smart TV) set-top boxes have the highest new shipments, with a share of nearly 50%; followed by IPTV (Internet TV) set-top boxes. The market penetration rate of smart network set-top boxes in my country exceeds 90%, and OTT set-top boxes have become the dominant player in home entertainment. With the development of the domestic IoT Internet of Things and smart home industries, OTT set-top boxes will bring more market space.

At present, set-top boxes have become an indispensable part of smart home and home multimedia entertainment, and will still occupy an important market position for a long time. The ultra-high-definition and intelligentization of my country's video industry is steadily advancing. With the emergence of new 5G+8K ultra-high-definition technology, AR/VR (augmented reality, virtual reality) technology, and new operating systems, the smart home multimedia information terminal industry will enter a new era. new stage of development.

5 companies are expected to grow in annual performance

According to incomplete statistics, there are 19 UHD set-top box concept stocks in the A-share market. In terms of scale, the concept stocks are mostly small and medium-sized, and only 6 have the latest market value of more than 10 billion. Among them, Jingchen shares with the highest market value, approaching 38 billion yuan. The company's main business is multimedia smart terminal SoC chips, which are mainly used in smart set-top boxes, smart TVs and AI audio and video system terminals.

Since June, 19 concept stocks have risen by an average of 2.09%, Galaxy Electronics has risen by more than 10%, and Gospell, Skyworth Digital, Tianyi, and Eurotunnel have risen by more than 6%.

According to the performance of the first quarter, the 5 stocks doubled year-on-year, and the net profit growth of Jiulian Technology and Gospell led the way, reaching as high as 505.13% and 462.36% respectively.

According to the ratings of 3 or more institutions, the annual performance of 5 stocks is expected to increase. Skyworth Digital ranked first with a pre-growth rate of 78.16%. The company's set-top box business revenue in the first quarter was 1.709 billion yuan, a year-on-year increase of 54.01%, of which the overseas market accounted for 53% and the domestic market accounted for 47%. Jingchen shares and digital video agencies predict that the performance will increase by more than 35%.

Compared with the positions held at the end of May, Northbound Capital increased its holdings of 3 shares of Skyworth Digital, Jingchen Shares, and New Media Shares. Skyworth Digital increased its positions by 50.14%, and Jingchen shares and New Media shares increased by more than 15%.