Core Points - The China Securities Index (CSI) Huaxia AH Economic Growth Index reported a value of 6611.27 points, showing a monthly increase of 0.34%, a quarterly decrease of 3.58%, and a year-to-date increase of 6.87% [1] Group 1: Index Composition - The CSI Huaxia AH Economic Growth Index selects financially sound growth-leading companies from both mainland and Hong Kong markets to reflect the performance of companies benefiting from economic structural changes [1] - The index is based on a starting point of 1000.0 points as of December 31, 2004 [1] Group 2: Top Holdings - The top ten holdings of the index include Tencent Holdings (9.74%), Alibaba-W (9.69%), Meituan-W (4.05%), Yum China (3.36%), Jiangsu Bank (3.31%), Muyuan Foods (2.39%), Wens Foodstuff Group (2.31%), Jitu Express-W (2.17%), China Telecom (2.0%), and Kingsoft (1.98%) [1] Group 3: Market Distribution - The market distribution of the index holdings shows that the Hong Kong Stock Exchange accounts for 52.26%, the Shanghai Stock Exchange for 31.63%, the Shenzhen Stock Exchange for 16.12%, and the Beijing Stock Exchange for 0.00% [1] Group 4: Industry Breakdown - The industry composition of the index includes Consumer Discretionary (20.41%), Industrials (19.36%), Communication Services (16.20%), Information Technology (11.50%), Financials (8.89%), Consumer Staples (8.56%), Materials (5.81%), Health Care (4.67%), Utilities (1.76%), Energy (1.67%), and Real Estate (1.18%) [2] Group 5: Sample Adjustment - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are adjusted in accordance with sample changes, and temporary adjustments may occur under special circumstances [2]

Core Viewpoint - The launch of the new Maigang 40 smartphone by China Telecom marks a significant advancement in AI capabilities, communication features, and overall user experience, positioning it as a strong contender in the budget smartphone market [1][15]. AI Capabilities - The Maigang 40 is equipped with the self-developed Xingchen large model by China Telecom, showcasing top-tier performance in the SuperCLUE benchmark, indicating a qualitative leap in AI smart experience [3][5]. - The AI features include an AI call assistant with fraud prevention, real-time subtitles, and summaries; an AI life assistant for tasks like document restoration and ID scanning; and an AI office assistant that transcribes meetings and generates summaries [5][9]. Communication Features - A standout feature is the dual-direction Tiantong satellite communication capability, allowing users to send messages and make calls in areas without ground network signals, providing reliable communication for outdoor adventurers and remote workers [9][11]. Design and Durability - The Maigang 40 features a lightweight and durable design, passing a 2-meter drop test and supporting a maximum weight of 65 kg, with certifications for its drop resistance and IP64 water resistance [11][13]. - The aesthetic design includes a unique camera module and three stylish color options, enhancing its visual appeal [15]. Battery and Charging - The smartphone houses a 6100mAh battery, offering extended usage times even in extreme temperatures, with capabilities for 38.7 hours of continuous calls and 18.5 hours of video playback [13]. - It supports 40W fast charging, allowing for significant battery recovery in just 15 minutes [13]. Market Positioning - The Maigang 40 is positioned as a versatile smartphone with a starting price of 1999 yuan, available for pre-order and set to officially launch on July 2 [15].

Core Viewpoint - The article discusses the transformation of the traditional installation and maintenance service model in the information and communication industry, highlighting the innovative "installation and maintenance store" model introduced by China Telecom's Baoding branch to meet diverse user needs and enhance service efficiency [1][6]. Group 1: Service Model Transformation - The "installation and maintenance store" model integrates installation, maintenance, and marketing, allowing service personnel to understand user needs and recommend suitable products, thus achieving a comprehensive service experience [3][4]. - This model shifts the focus from merely completing installation tasks to a more holistic approach that combines service and marketing, enhancing user engagement and satisfaction [3][4]. Group 2: User Engagement and Satisfaction - The "installation and maintenance store" extends services to users' doorsteps, improving convenience and timeliness, while fostering long-term relationships through proactive communication and community building [5][6]. - By offering a variety of services beyond basic installation, such as mobile sales and payment services, the model enhances user satisfaction and brand loyalty [5]. Group 3: Operational Efficiency - The model addresses challenges such as low business conversion rates by implementing standardized marketing practices during service delivery, thus increasing operational efficiency [4]. - The integration of service and marketing not only resolves user pain points but also boosts the performance income of service personnel, contributing to overall service cost reduction [4].

Core Viewpoint - The three major Chinese telecom operators plan to fully restart eSIM services in the second half of 2025 after a two-year suspension due to security concerns related to fraud [1][16]. Group 1: Current Status of eSIM Services - China Unicom has resumed eSIM functionality in 25 provinces including Tianjin, Beijing, and Hebei, with no confirmed dates for other cities [2]. - China Mobile is optimizing its system and will gradually open eSIM services nationwide, with specific timelines to be announced [3]. - China Telecom has not completed the upgrade for eSIM services and does not currently support activation, with the upgrade timeline still pending [4]. Group 2: Reasons for Suspension - The suspension of eSIM services was primarily due to concerns over fraud risks associated with the technology [7]. - eSIMs pose greater information security risks compared to traditional SIM cards, as the authentication process can be bypassed, making it easier for fraudsters to exploit the system [8][9]. - There have been instances of eSIMs being converted to physical SIM cards, leading to misuse and significant losses for telecom operators [11][14]. Group 3: Future Developments and Upgrades - Operators are preparing to restart eSIM services, focusing on system optimization to address compatibility issues [17]. - The reintroduction of eSIM services will implement stricter authentication measures, including dual verification through ID and facial recognition, to prevent fraudulent registrations [18]. - The return of eSIM technology is expected to revolutionize communication methods and reshape smartphone designs [19]. Group 4: User Experience and Benefits - eSIMs allow users to switch between different operators and plans without needing to change physical SIM cards, enabling seamless transitions [22]. - The removal of SIM card slots can enhance device design by saving space, improving waterproofing, reducing thickness, or increasing battery capacity [23]. - eSIMs facilitate easier international roaming by allowing users to purchase local data plans online upon arrival, reducing costs associated with traditional roaming [24]. - In IoT applications, eSIMs enable remote management and enhance security, reducing the risk of information theft [25].

Group 1 - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 17.52%, with 208 stocks having a shareholding ratio exceeding 20% [1] - As of June 20, southbound funds held a total of 4,397.44 million shares, accounting for 13.34% of the total market value of the stocks [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 74.79% of its issued shares held, followed by Shandong Molong and Green Power Environmental, with 68.53% and 68.22% respectively [1] Group 2 - Southbound funds with a shareholding ratio exceeding 20% are mainly concentrated in the healthcare, industrial, and financial sectors, with 43, 31, and 29 stocks respectively [2] - The top stocks with high southbound fund holdings include China Telecom, Shandong Molong, and Green Power Environmental, with respective shareholding ratios of 74.79%, 68.53%, and 68.22% [2] - A significant portion of the stocks with high southbound fund holdings are AH concept stocks, with 118 out of 208 stocks (56.73%) having a shareholding ratio over 20% [1][2]

Core Insights - The global deployment of F5G-A all-optical networks is accelerating, with over 70 operators launching 10G packages, indicating a significant shift in the optical access sector [1] - Shanghai is leading the development and application of 10G optical networks, supported by major companies like China Telecom and Huawei, as part of the "Global Dual 10G City" strategy [1][2] - The integration of F5G-A and 5G-A technologies is driving innovation in smart homes, digital offices, and enterprise-level transformations [2][3] Group 1: F5G-A Innovations - The F5G-A Innovation Center in Shanghai is redefining digital life with applications like cloud 8K home theaters and AI robots, enhancing user experiences through FTTR technology [2] - The center has achieved national leadership in key metrics such as the number of 50G-PON ports, facilitating a comprehensive ecosystem for AI applications in households [3] - Shanghai Telecom and Huawei have established the first "10G Cloud Broadband Demonstration Community" based on 50G-PON technology, catering to the growing demand for high-speed networks in enterprise parks [3] Group 2: 5G-A Applications - 5G-A is expanding its reach from smart factories to transportation, exemplified by the "Junzi Lan" cruise ship, which has become a benchmark for 5G-A network coverage [4][8] - The integration of 5G-A technology in public transport, such as buses, has improved service efficiency, reducing passenger wait times significantly [8] - The collaboration between China Telecom and Huawei in developing "Smart Aggregation for Uplink" technology is enhancing network services, transitioning from connectivity to intelligent services [8][9] Group 3: Strategic Insights - The emphasis on high-demand services like HD video and IoT connectivity is crucial for operators, as highlighted by Huawei's leadership [9] - The synergy between F5G-A and 5G-A, along with AI integration, is positioned as a new engine for the digital economy, paving the way for innovative communication industry developments [9]

Investment Rating - The report maintains a "Recommended" investment rating for the communication industry [1] Core Insights - The 2025 World Mobile Communication Conference (MWC) focused on key themes such as 5G integration, AI, and satellite communication, highlighting significant advancements in the industry [15][49] - The communication sector has shown resilience, outperforming major indices like the CSI 300 and the ChiNext Index in both weekly and year-to-date performance [8][9] - Key companies to watch include China Mobile, China Telecom, and China Unicom, with specific recommendations for various segments such as AI applications, satellite communication, and optical components [49][51] Summary by Sections Industry Overview - The communication industry consists of 124 listed companies with a total market capitalization of approximately 484.33 billion [3] - The sector's performance has been robust, with a 1.58% increase in the past week, outperforming the CSI 300 by 2.04 percentage points [8][9] MWC Highlights - Major announcements included the release of the "Agentic AI for Telco" white paper by China Mobile and several partners, outlining a framework for AI collaboration in telecommunications [15][16] - China Mobile introduced a series of AIoT products, emphasizing the integration of AI with IoT and satellite communications [21][22] - China Telecom showcased its cloud-network integration strategy, focusing on AI-driven applications across various sectors [25][27] Investment Recommendations - Recommended companies include: - Telecom Operators: China Mobile, China Telecom, China Unicom [51] - Optical Components: New Yisheng, Tianfu Communication, Zhongji Xuchuang [51] - Satellite Communication: Haige Communication, Shanghai Hanhua, Qiyi Er [51] - Equipment Manufacturers: Gongjin Co., Unisoc, ZTE, Ruijie Networks [51] - IoT Modules: Guanghetong, with a focus on AI applications [51]

Core Viewpoint - The recent change in the bidding candidates for a multi-million system procurement project by China Telecom has raised questions regarding the evaluation process and the reasons behind the sudden ranking switch between the two leading candidates [1][12]. Group 1: Project Overview - The project is a centralized procurement for desktop operating systems by China Telecom, divided into two packages: Package One for 286,000 cloud-based desktop operating systems with a maximum bid limit of 68.42 million yuan (excluding VAT) and Package Two for 54,000 physical machine desktop operating systems with a maximum bid limit of 19.98 million yuan [5]. - Package One selected two winners with a distribution of 60% and 40% based on their bid prices, while Package Two also selected two winners, with the distribution depending on the price relationship between the bids [5][6]. Group 2: Bidding Process and Results - The first candidate for Package One was Kirin Software, ranked first, while Zhongke Fangde Software was ranked second [2]. - For Package Two, the initial first candidate was Tongxin Software with a bid of 22.23394 million yuan (including VAT), and Kirin Software was the second candidate with a bid of 22.41385503 million yuan (including VAT) [4]. - On June 17, the candidates for Package Two were unexpectedly changed, with Kirin Software moving to the first position and Tongxin Software to the second, resulting in a difference of over 4 million yuan in estimated bid amounts based on the share distribution [7].

Core Viewpoint - China Telecom showcased its breakthroughs in the integration of artificial intelligence (AI) and communication networks at the 2025 World Mobile Communication Conference (MWC Shanghai), emphasizing its role in driving industry transformation and enabling intelligent upgrades across various sectors [1] Group 1: Technological Innovation - The AI+ network capability is built on a solid foundation of the "cloud-network integration" strategy, with the release of the Star Network Model 2.0 as a key highlight, covering all professional fields of cloud-network operations [3] - The AI-driven "Smart Upstream" technology, developed in collaboration with Huawei, enhances 5G-A network upstream rates by 15% and reduces latency by 30%, marking a significant step towards the evolution of 5G-A into a "Mobile AI network" [3] Group 2: Product Upgrades - The AI+ strategy integrates deeply into personal, family, and industry scenarios, with over 80 industry-specific AI models deployed, achieving a defect detection accuracy of 99.4% in industrial quality inspection [4] - In the personal domain, AI features such as video editing efficiency improvements of 40% and document generation speed increases of 30% have been introduced through the integration of the Star Network Model with personal devices [4] Group 3: Ecosystem Co-construction - China Telecom's AI+ strategy emphasizes open collaboration, attracting over 5,000 ecosystem partners and facilitating over 70 billion calls to cloud-network capabilities [5] - The establishment of the "Future Intelligent Body Joint Innovation Center" with Huawei focuses on cutting-edge technologies, earning the TM Forum 2025 "Data and AI Innovation Excellence Award" [5] Group 4: Future Directions - The company plans to enhance foundational connectivity by constructing 10G 5G and 50G PON broadband networks, accelerate the integration of quantum technology with AI, and deepen the "AI+ security" framework to strengthen digital security [5]

Core Viewpoint - China Telecom Shandong Company plays a crucial role in the construction of a digital China, focusing on the needs of Shandong's "Digital Strong Province" initiative by enhancing optical network infrastructure, expanding 5G applications, and laying out computing power infrastructure to support high-quality economic and social development [1][3][12] Group 1: Optical Network Development - The company has built a leading all-optical network system covering urban and rural areas, transitioning from the "Gigabit Era" to the "Ten-Gigabit Era," establishing a solid network foundation for Digital Shandong [3] - In rural areas, the company has initiated a large-scale construction project to address insufficient optical network coverage, utilizing advanced technologies to enhance user experience with average download speeds of 1.2 Gbps and latency under 5 milliseconds [4][7] Group 2: Smart Rural Development - China Telecom Shandong has developed a "1+3+3+N" smart rural system, leveraging big data to enhance rural governance and management, with over 50 smart village demonstration points established [6] - The company has achieved over 90% coverage of gigabit optical networks in administrative villages, facilitating access to quality education resources and promoting rural e-commerce [7] Group 3: Technological Innovations - The company has achieved full coverage of gigabit optical networks in urban areas and is pioneering the F5G-A ten-gigabit optical network trials, significantly enhancing user experience with download speeds reaching 9700 Mbps [9][10] - Advanced technologies such as FTTR and WiFi 7 have been implemented to ensure comprehensive signal coverage in homes, supporting multiple smart devices and high-bandwidth applications [10] Group 4: Commitment to Digital Economy - China Telecom Shandong emphasizes its responsibility in promoting digital revitalization, ensuring that digital benefits reach every household and significantly contributing to the growth of Shandong's digital economy [12]