China Mobile Will Build 50,000 5G Base Stations During the Year

On June 26, the 2019 World Mobile Congress opened in Shanghai. 5G industrial manufacturing, 5G payment, 5G cloud games, 5G smart driving, 5G ultra-high definition video, and other applications can be seen everywhere, and major operators and mobile phone manufacturers are even more aggressive. Start to compete with 5G phones. This will accelerate the 5G commercial landing, for the manufacturers in the industrial chain, especially sub-industry manufacturers such as 5G antennas benefits will be advanced, the performance of the entire 5G cycle will shift forward, and may benefit from the continuous expansion of the scale of construction.

5G is a hot content of the current communication industry, and it is also the focus of this conference. Although the current 5G mobile phone is not listed, the competition between mobile phone manufacturers has begun. At the World Mobile Congress China Mobile’s exhibition hall on the 26th, a number of mobile phone manufacturers’ 5G mobile phones were displayed, including mainstream mobile phone brands such as Huawei, Samsung, Huawei, and Xiaomi.

On the day before the opening of the Mobile Congress, on June 25, China Mobile officially released the “5G+” program, which released 42 5G commercial terminals including 13 mobile phones. China Mobile also delivered 10,000 units of 11 5G terminals, including Huawei, OPPO, vivo, ZTE, Xiaomi, Yijia, Samsung, TCL and China Mobile’s own brands of smartphones and data CPE (converting high-speed 4G or 5G signals) WiFi device).

With the acceleration of 5G commercial deployment, one of the three 5G application scenarios, enhanced mobile bandwidth (eMBB) will accelerate the further improvement of Massive MIMO technology, and the number of antennas corresponding to base stations and terminals will increase several times. Operators and mobile phone manufacturers will increasingly demand 5G next-generation devices, and upstream antenna equipment manufacturers such as Shenglu Communication (002446) and Xinwei Communication (300136), which can meet the 5G technical standards, will benefit first.

In terms of base station antennas, the current three major operators and key domestic cities are accelerating the deployment of 5G base stations. According to the plan, China Mobile will build more than 50,000 5G base stations nationwide this year and provide 5G commercial services in more than 50 cities. In 2020, it will further expand its network coverage and provide 5G commercial services in all cities above the prefecture level. As the radius of coverage of the 5G base station is reduced, the number of required base stations will be multiplied. According to the brokerage calculation, in the peak period of 5G construction in 2021, the market size of global base station antennas can reach 34.5 billion yuan. Compared with the market capacity of about 10 billion in 18 years, the growth rate of the industry will be very fierce.

Shenglu Communication (002446) is the first antenna manufacturer in China. Its current business focuses on the manufacture of communication equipment such as antennas and RF devices, automotive electronics and military. The communication field includes narrow-band IoT base station antennas, IoT terminal products, 5G bearer network transmission antennas, active phased array antennas, etc.; automotive electronics field includes DA Zhilian system, intelligent assisted driving system, etc.; military electronics field includes high reliability. Sexual RF devices, etc.

As an established antenna company, Shenglu Communication (002446) has unique advantages in 5G communication products, especially in high-band millimeter-wave products. The company’s 5G product development covers macro stations, micro-station, and point-to-point relay transmission, and also has millimeter waves. Active phased array and trunk transmission products in the frequency band. Among them, with the mature active phased array product technology of the company’s wholly-owned subsidiary Nanjing Hengdian, the first analog chip 28G64 channel millimeter wave active has been developed for the large-scale active phased array antenna for 5G main station applications. Phased array antenna, and exhibited at the International Communication Exhibition in Barcelona, ​​Spain, received favorable comments

In terms of terminal antennas, the increase in 5G frequency and the increase in device integration will accelerate the upgrade of FPC antennas to LPC and LDS antennas. According to market data, the global 5G mobile phone antenna market is expected to grow from 3.6 billion yuan in 2018 to 35.2 billion yuan in 2022, with a compound growth rate of 77%.

Xinwei Communication has been providing various antenna products for mobile terminal customers. The mobile phone antenna business accounted for more than 95% of the revenue. In 2012, it acquired the largest international manufacturer of the antenna market, Laird (LD). At present, the InsertMolding+LDS antenna solution has been approved by customers. In addition, according to the company announcement, LCP antennas have now been shipped. 5G commercial floor acceleration will increase the company’s LCP and LDS antenna business performance.

According to industry analysts, from the current Massive MIMO antenna technology adopted by 5G base stations, the base station antenna industry in the 5G era will have a double increase in price and quantity compared to the 4G era, and the price is expected to reach 4-5 times. It can reach 1.5 times, and comprehensively judges that the market capacity of the industry will be expanded by more than 6 times, which belongs to the sub-industry with relatively certain investment opportunities in the 5G industry. According to the analysis of Huachuang Securities Research Institute, the network construction of operators this year has been accelerated after the issuance of licenses, and it can be verified from multiple dimensions. The performance of the entire 5G infrastructure sector is expected to exceed expectations.

From：http://www.hj-antenna.com/