Investment Rating - The report maintains a "Recommended" rating for the communication industry [3]. Core Insights - The enthusiasm for the industrialization of hollow-core fiber optics is high both domestically and internationally, with domestic manufacturers expected to leverage cost and technological advantages to capture a significant market share [2]. - Major companies like Microsoft are actively pursuing the industrialization of hollow-core fiber optics, with plans to increase global production to meet the growing demand for network infrastructure [5]. - The hollow-core fiber optics technology promises to significantly enhance transmission speed and reduce latency, making it a competitive medium for global optical communication [5]. Summary by Sections Industry Overview - The hollow-core fiber optics market is currently small, but manufacturers with technological and patent advantages are in a leading position. Companies like Lumensity and Changfei Fiber Optics are at the forefront, while domestic players such as Hengtong Optic-Electric and Zhongtian Technology are also making strategic moves [2]. Market Dynamics - The report highlights that the demand for multi-mode fiber optics is increasing, and as the industrialization of hollow-core fiber optics accelerates, domestic manufacturers are expected to achieve large-scale shipments and capture a larger market share [2]. Technological Advancements - Hollow-core fiber optics utilize air or inert gas instead of solid fiber cores, which allows for faster signal transmission and reduced latency compared to traditional glass fiber optics. This technology is particularly beneficial for data centers, which are expanding in scale and energy consumption [5]. Investment Recommendations - The report suggests focusing on companies such as Changfei Fiber Optics, Hengtong Optic-Electric, and Zhongtian Technology for potential investment opportunities in the hollow-core fiber optics sector [6].

Investment Rating - The report maintains a "Recommended" investment rating for the steel industry [1]. Core Insights - The "Steel Industry Stable Growth Work Plan (2025-2026)" has been released, aiming for an average annual growth of around 4% in the industry's added value over the next two years. This plan emphasizes "stabilizing growth and preventing internal competition," guiding structural adjustments and high-quality development in the steel sector [12][14]. - The report highlights the acceleration of digital transformation in the steel industry, with significant investments in AI and digital technologies by leading companies, indicating a shift towards data-driven operations [27][28]. Summary by Sections 1. Review of 2021 Steel Supply-Side Capacity Regulation - In 2021, China's crude steel production fell to 1.035 billion tons, a year-on-year decrease of approximately 2.8%, due to stringent capacity control measures aimed at achieving carbon neutrality goals [4][8]. - The profitability of the steel industry improved significantly, with total profits in the black metal smelting and rolling processing industry reaching 424.09 billion yuan, a year-on-year increase of 72.1% [9][10]. 2. Stable Growth Work Plan Released, Leaders Benefit from Production Regulation - The "Stable Growth Work Plan" sets a target for the steel industry's added value to grow by about 4% annually from 2025 to 2026, focusing on economic stability and balanced market supply and demand [12][14]. - The plan emphasizes precise control of capacity and production, promoting industry transformation and upgrading, which will benefit leading steel companies [15][16]. 3. Accelerated Digital Transformation, AI + Steel Gaining Momentum - The digital transformation in the steel industry is expected to significantly enhance overall digital levels by 2026, with a focus on integrating new information technologies [19][20]. - Leading companies like Baosteel and Shougang are actively pushing forward their AI and digital transformation initiatives, with Baosteel planning to implement over 300 AI application scenarios by 2025 [27][28]. 4. Investment Recommendations - The report suggests focusing on leading companies such as Shougang, Hebei Steel, and CITIC Special Steel, as they are expected to benefit from the ongoing capacity regulation and industry transformation [31].

Macro Overview - In March, China's export value reached 313.9 billion USD, with a year-on-year growth rate of 12.4%, while imports were 211.3 billion USD, showing a decline of 4.3% [2][3] - The trade surplus for the first quarter was 273.16 billion USD, compared to 183.18 billion USD in the same period last year [2][3] - The export growth was supported by a combination of factors including preemptive exports due to tariff uncertainties and stable external demand [3][4] Trade Dynamics - Exports to the US saw a significant rebound with a growth rate of 9.1%, while exports to the EU increased by 10.3% [4][5] - Exports to ASEAN countries rose by 11.6%, with notable increases to Thailand, Indonesia, Vietnam, and the Philippines [4] - The overall external demand remains resilient, as indicated by the stable global manufacturing PMI [3][4] Sector Performance - The machinery sector reported a 18.5% year-on-year increase in excavator sales in March, indicating strong domestic demand [26][27] - The technology sector is expected to benefit from policy support and increased investment in AI and semiconductor industries, with a focus on high-performing value stocks [10][11] - The precious metals sector is experiencing upward pressure on gold prices due to increased demand from global ETFs and central banks amid rising geopolitical tensions [13][15][16] Investment Opportunities - The report suggests focusing on sectors benefiting from policy-driven infrastructure investments, including engineering machinery and urban rail signaling systems [29] - The technology sector is highlighted for its long-term growth potential, particularly in AI and semiconductor fields [10][11] - The gold sector is poised for a valuation reassessment as prices stabilize above 3000 USD per ounce, benefiting companies in this space [15][16] Company-Specific Insights - Zijin Mining reported a significant increase in revenue and profit in Q1 2025, driven by higher copper and gold prices, with a focus on expanding production capacity [37][38][40] - Wanfu Biology achieved steady revenue growth, with a notable increase in overseas sales, indicating successful global expansion strategies [42][44]