China Mobile's centralized procurement tenders for optical cables can accelerate the integration of the optical fiber industry

Source:Glenhuis Time:2020-06-20 18:57:50 浏览次数:

China Mobile's centralized procurement tenders for optical cables can accelerate the integration of the optical fiber industry

 

 

  According to a research report published by Nomura, China Mobile (0941.HK) announced the bidding announcement for the centralized procurement of ordinary optical cable products from 2020 to 2021, purchasing 119.2 million core kilometers of ordinary optical cables and 5,170,600 core kilometers of special optical cables. Nomura believes that the increase in the total procurement bidding scale will have an overall impact on the development of China's optical fiber industry, especially after a year of sluggish demand and oversupply in 2019.

  Nomura said that China Mobile’s bidding strategy is similar to last year, allocating the largest market share to the three largest companies, which will force fiber cable suppliers to compete with each other and put downward pressure on prices, but will accelerate industry consolidation. The bank said that since the real price and the allocable share of YOFC (6869.HK) are still uncertain, it maintains its "neutral" investment rating with a target price of HK$17 unchanged.

In the 5G supply chain, Nomura is optimistic about China Railway Tower (0788.HK), Shennan Circuit (002916.SZ) and Guangdong Shengyi Technology (600183.SH).