China Galaxy Securities: The 6G circuit has broad room for long-term growth, and it is recommended to seize the three main investment lines in the industrial chain

The Zhitong Finance App learned that China Galaxy Securities released a research report saying that China's 6G technology research and development continues to accelerate, industrial supporting policies are being introduced intensively, satellite communications, space-space integration, and global ubiquitous connectivity drive industry development. The track has broad scope for long-term growth. It is recommended to grasp the three main investment lines of the industry chain: (1) Operators: deeply involved in 6G R&D, satellite and ground integration business implementation, and continued capital development support; (2) 6G main equipment vendors: benefiting from network iteration and increased demand for integrated communication, sensing and intelligent equipment; (3) Satellite Internet: The construction of satellite internet is speeding up, The terminal satellite integration business is being implemented at an accelerated pace.

The main views of China Galaxy Securities are as follows:

Ministry of Industry and Information Technology: 6G is the top priority of the “15th Five-Year Plan”. Accelerate core technology research and prepare for commercial use

On August 26, the Information Office of the State Council held a series of press conferences on the theme of “Getting Started with the Fifteenth Five-Year Plan”. The Ministry of Industry and Information Technology introduced China's relevant layout to promote the development of the information and communication industry during the “15th Five-Year Plan” period, pointing out that during the “15th Five-Year Plan” period, the Ministry of Industry and Information Technology will focus on promoting high-quality development of the information and communication industry, anchoring comprehensive infrastructure upgrades, agile and efficient industry supervision, global security and integration, empowering deeper and broader goals, and focus on promoting the “four enhancements.” Strengthen innovation drive and promote technology development and application popularization. Based on the supply side, speed up technical research and solidly promote research and development of key core technologies such as mobile communication, optical communication, and satellite communication. 6G will be a top priority during the “15th Five-Year Plan” period. It will speed up research on 6G core technology, continue 6G technology testing and standard development, promote the maturity and ecological construction of the 6G industry, and prepare for 6G commercialization.

State Council's State-owned Assets Administration Commission: Build a safe and stable 6G industrial chain and promote low-level breakthroughs in key technology devices

On August 20, the State Council's State-owned Assets Administration Commission held the Central Enterprise 6G Future Industry Promotion Conference. At the conference, the central enterprise announced the task of co-creating 6G future industry scenarios for central enterprises. Comrades in charge of relevant departments and bureaus of the State Council's State-owned Assets Administration Commission, comrades in charge of 31 central enterprises related to the 6G future industry and comrades in charge of relevant departments attended the conference. In June of this year, the Ministry of Industry and Information Technology issued a notice on organizing and carrying out the 6G Ministry of Innovation and Development's provincial collaborative pilot project, and decided to organize and carry out the 6G Innovation and Development Ministry and Provincial Collaborative Pilot Project. The Ministry of Industry and Information Technology has made it clear that by 2029, through this pilot action, a number of independently innovative 6G technology solutions will be formed, a number of promising new business application scenarios will be cultivated, and a number of rich and diverse new terminal products will emerge, providing strong support for 6G commercial implementation.

The conference emphasized that promoting the future development of the 6G industry is an inevitable requirement for central enterprises to implement national strategic plans and carry out strategic missions. Central enterprises should actively connect with national, local, and industry plans to accelerate the achievement of industrial development goals

It is necessary to make up for technical shortcomings, strengthen innovation at the source of basic theory, promote low-level breakthroughs in key technical devices, and build a safe and stable 6G industrial chain supply chain. It is necessary to consolidate the industrial base, strengthen the construction of innovation platforms, cultivate market players, forge talent teams, and establish a solid foundation for high-quality 6G development. It is necessary to speed up international cooperation, establish a diversified cooperation system, and enhance the right to speak internationally in all aspects. It is necessary to incubate the scenario business format, actively promote the integration of 6G technology with the real economy, comprehensively establish a first-mover advantage in the application ecosystem, and accelerate the implementation of a closed loop of 6G commerce.

Risk warning: the risk of 6G technology development and iteration falling short of expectations; the risk of the satellite Internet networking process falling short of expectations; the risk of increased industry competition; the risk of domestic and foreign policy uncertainty, etc.