Investment Rating - The industry investment rating is "Positive" [7] Core Viewpoints - The official launch of 5G-A is expected to enhance user value, providing significant improvements in capacity, speed, latency, positioning, and reliability compared to 5G [1][3] - Major telecom operators have commenced 5G-A commercial services, with China Mobile aiming to develop 50 million 5G-A users in 2024 [1][2] - 5G-A is anticipated to drive double-digit growth in DOU (average monthly data usage per user) and ARPU (average revenue per user) due to its integration with AI and the introduction of diverse service packages [3][4] - The infrastructure for 5G-A is being rapidly developed, with over 100,000 5G-A base stations expected to be deployed in 2024 [4][5] - Telecom operators are adjusting their investment structures to focus on the future development of 5G-A, with significant planned investments for 2025 [5][9] Summary by Sections 5G-A Commercial Launch - China Mobile, China Telecom, and China Unicom have all launched 5G-A service packages with various pricing tiers [1][2] - China Mobile's 5G-A package ranges from 199 to 999 yuan per month, targeting a user base of 50 million [1] - China Telecom offers three 5G-A packages priced at 199, 299, and 399 yuan, along with additional data packages [1][2] User Experience and Market Potential - The integration of 5G-A with AI is expected to transform network operations and enhance user experience through tailored service offerings [3] - New technologies such as 3CC carrier aggregation and low-latency networks are set to empower various industries, including smart cities and industrial internet [3][4] Infrastructure Development - The Ministry of Industry and Information Technology has outlined plans for nationwide 5G-A coverage in major cities [4] - China Mobile plans to invest 9.8 billion yuan in 2025 to expand its 5G-A infrastructure [5] Investment Recommendations - The report recommends investing in China Mobile, China Telecom, and China Unicom due to their strong profitability and high dividend yields amidst a complex macroeconomic environment [9]

Group 1 - The core viewpoint of the news is the launch of the computing power internet experimental network by China's three major telecom operators, aiming to enhance the interconnectivity and efficiency of computing resources across the country [1][3][4] - The experimental network will facilitate the interconnection of computing resources from the three telecom operators and the dispersed social computing resources nationwide, making it easier to "find, allocate, and use" computing power [3][4] - China's total computing power ranks second in the world, and the computing power internet is seen as a new type of infrastructure, with a public service platform expected to launch in July 2024 [3][4] Group 2 - The construction of the computing power internet is still in its early stages, facing challenges such as resource dispersion and lack of unified standards, which complicates collaborative allocation [4] - The computing power is crucial for artificial intelligence, with significant capital expenditure increases by international tech giants aimed at AI and cloud service infrastructure [4] - IDC data predicts that China's intelligent computing power will reach 1,037.3 EFLOPS by 2025 and exceed 2,781.9 EFLOPS by 2028, with a compound annual growth rate of over 35% from 2025 to 2028 [4] Group 3 - Nearly 60 computing power concept stocks in the A-share market are expected to reverse their overall performance in 2024, with revenue and net profit growth rates of 9.85% and 9.46%, respectively, significantly surpassing the previous year [4] - The three major telecom operators are projected to see continuous revenue and net profit growth from 2020 to 2024, with significant growth in their proprietary intelligent computing scale in 2024 [4] - 15 concept stocks are predicted to achieve profitability in 2024, with net profit growth expected to exceed 20% in 2025 and 2026, including companies like Tianyuan Dike and Inspur [5]

中新网广东新闻5月17日电 (张璐) 5月17日，由中国电信主导发起的亚洲直达(ADC)国际海缆项目(以 下简称：ADC国际海缆)正式开通业务。作为亚太地区近年来唯一建成投产的国际海缆标杆项目，ADC 国际海缆全面提升区域通信能力。 ADC海缆系统网络操作中心。(主办方 供图) ADC国际海缆项目融合了当今世界先进的大容量、高速率光传输技术，其单对光纤设计容量突破了 20Tb/s，具备了卓越的传输效率、可靠的网络稳定性以及高安全性等显著优势。 随着业务的正式开通运营，中国电信将为亚太地区带来超过50Tb/s的新增带宽容量，这不仅标志着中国 电信在亚太内部国际通信网络带宽规模上实现了跨越式发展，更意味着能够为千行百业的数字化转型升 级提供更为强大、高效的网络保障。 ADC国际海缆项目由中国电信、中国联通、新加坡电信、日本软银、印度塔塔通信、越南Viettel、泰国 NT集团以及菲律宾PLDT等多家国际运营商联合建设，是过去九年来亚太地区唯一建成投产的国际海缆 项目。该项目全长9988公里，项目主干段连接中国香港、日本及新加坡，同时在中国汕头及菲律宾、越 南、泰国等国家设置分支段，8对光纤承载的流量超过160Tb ...

Investment Rating - The report suggests focusing on domestic AI development-driven sectors such as servers, IDC, switches, and connectors, as well as overseas AI development-driven sectors like servers and optical modules [4] Core Insights - The U.S. Department of Commerce upgraded chip controls against China, banning Huawei's Ascend chips and limiting U.S. chips for AI training in China, which is expected to benefit domestic chip suppliers [1][6] - NVIDIA's AI chip shipments fell short of expectations, leading to a projected slight decline in capital expenditures from domestic internet companies in the short term, but this will accelerate the domestic replacement of AI chips [1][5] - The establishment of an AI chip R&D center in Shanghai by NVIDIA and a significant order for 18,000 GB300 servers from Saudi Arabia highlight the global strategic layout and increasing demand for high-speed optical modules and liquid cooling technology [1][6] Summary by Sections Communication Sector Overview - The telecom operators achieved a total revenue of 446.9 billion yuan in the first quarter of 2025, a year-on-year increase of 0.7%, with a total telecom business volume growth of 7.7% [3][12] - The optical module exports saw a growth of 19.6% year-on-year in March, with a cumulative growth of 3.18% from January to March 2025 [28][30] Server Sector - The server index experienced a slight decline of 2.51% this week, primarily due to delays in NVIDIA's GB200 deliveries and lower-than-expected capital expenditures from companies like Alibaba [5][6] - The report anticipates that the domestic AI chip supply will benefit from the U.S. chip control upgrades, which may lead to a long-term increase in AI-driven business growth [5][6] Optical Module Sector - The optical module industry is showing signs of recovery, with leading companies like NewEase and Zhongji Xuchuang reporting significant revenue growth of 179% and 264% respectively in Q1 2025 [7] - The overall revenue of the optical module sector increased by 48% year-on-year, driven by AI computing demand and cost reduction measures [7] IDC Sector - The IDC industry is expected to grow driven by increasing AI computing demand and supportive policies, with resources concentrating on companies that meet energy consumption standards and have sufficient project reserves [2]

Core Viewpoint - China Telecom officially launched its 5G-A package on May 17, marking a significant advancement in mobile communication technology, enhancing speed, capacity, and reliability compared to 5G [1][2][4] Group 1: 5G-A Overview - 5G-A is an enhanced version of 5G, serving as a transitional phase towards 6G, with substantial improvements in capacity, speed, latency, positioning, and reliability [1][4] - Users can experience up to 400 Mbps upload and 3 Gbps download speeds under optimal conditions, significantly reducing upload times for large files [1][5] Group 2: Pricing and Packages - China Telecom offers three tiers of 5G-A packages priced at 199 yuan/month, 299 yuan/month, and 399 yuan/month, with varying data limits and speed capabilities [2][3] - Existing users can opt for a 5G-A add-on package, available for monthly or per-use purchase, catering to both individual and family needs [2][3] Group 3: Network Expansion and Coverage - The coverage of 5G-A networks is expanding, with China Telecom planning to deploy approximately 70,000 stations across 121 cities by 2024 [3][4] - China Mobile aims to invest nearly 10 billion yuan to enhance its 5G-A network, targeting over 400,000 intelligent base station upgrades [4] Group 4: Technological Advancements - 5G-A supports a wide range of new functionalities, including high-precision positioning and low-cost IoT applications, which are expected to accelerate digital transformation across various industries [4][5] - The technology is anticipated to facilitate advancements in sectors such as autonomous driving and drone operations, leveraging its low latency and high connectivity capabilities [5]

Group 1 - The event on May 17 marked the launch of the computing power internet experimental network by China Telecom, China Mobile, and China Unicom in collaboration with the China Academy of Information and Communications Technology [1] - The computing power internet aims to interconnect dispersed computing resources, including general computing, intelligent computing, supercomputing, and cloud-edge-end resources, allowing users to easily access and utilize computing power [1] - The computing power internet is seen as a new type of infrastructure that enhances heterogeneous computing and elastic network capabilities, transforming the supply and usage patterns of computing resources [1] Group 2 - Hongbo Co., Ltd. has developed its own "Yingbo Cloud" platform, which integrates core technologies such as computing power scheduling, storage solutions, and cluster monitoring [2] - Tuo Wei Information is a core partner of Huawei's Ascend ecosystem, collaborating to develop AI servers and edge computing solutions [2]

Group 1: Corporate Developments - Midea Group's chairman Fang Hongbo commented on succession issues, referencing the ongoing rivalry with Gree Electric's chairwoman Dong Mingzhu, highlighting the competitive dynamics between the two companies over the past 13 years [4] - Red Star Macalline's founder Che Jianxing is under investigation by the Yunnan Provincial Supervisory Committee, following previous debt crises and strategic adjustments, while the company's board operations remain normal [6] - China Telecom appointed Liu Guiqing as president and Huang Zhiyong as executive vice president, indicating a shift in leadership [8] Group 2: Personnel Changes - Wang Yuwen has taken over as chairman of Shenye Group, succeeding Lu Hua, who retired after 12 years, marking a significant leadership transition [9] - Xu Minfeng, a veteran of Midea, has left his position as president of the home appliance division, with reports indicating he had already departed in September of the previous year [10] - Zhang Kun has resigned as vice president of E Fund to focus on investment management, reflecting a trend in the industry towards prioritizing investment research [11] - Wu Chaoze has been appointed as a committee member of CITIC Securities, continuing her role in research and international business [12] Group 3: Legal and Regulatory Issues - A retail investor was fined nearly 300 million yuan for manipulating the securities market, highlighting regulatory scrutiny in the financial sector [7] - Former vice president of China Merchants Bank, Ding Wei, has been prosecuted for accepting bribes, indicating ongoing anti-corruption efforts within the banking industry [13]

Investment Rating - The report maintains a rating of "Add" for the industry [3] Core Viewpoints - The rapid development of AI is driving operators to optimize their capital expenditures, with a clear trend towards structural optimization. Despite a decline in overall capital expenditures, investments in computing power are expected to grow or remain stable, indicating the operators' commitment to AI [1][21] - Cloud computing is experiencing a new growth curve catalyzed by AI, significantly enhancing its application potential. The roles of the three major operators in cloud infrastructure are being redefined as they deepen their investments in cloud construction [2][23] Summary by Sections Investment Strategy - The report suggests focusing on the computing power sector, particularly in optical communication and related companies such as Zhongji Xuchuang and Xinyi Sheng. It also highlights the importance of operators like China Mobile, China Telecom, and China Unicom in this space [8][14][31] Industry Trends - The report notes a significant slowdown in 5G user growth across the three major operators, with a total of approximately 1.2 billion 5G users. The average revenue per user (ARPU) is also declining, indicating intensified competition among operators [7][26] Operator Capital Expenditure - China Mobile plans to invest CNY 37.3 billion in computing power for 2025, accounting for 25% of its capital expenditures. China Telecom's computing power investment is projected to reach CNY 22 billion, a 22% increase year-on-year. China Unicom expects a 28% increase in computing power investment, exceeding CNY 18 billion [23][24][25] Market Performance - The report highlights that the optical communication index outperformed other segments within the communication sector, with a notable increase in stock prices for key players in the computing power industry [17][20] Key Recommendations - The report recommends focusing on companies within the computing power supply chain, including optical communication leaders and related technology firms, as they are expected to benefit from the ongoing AI wave [8][31]

Core Viewpoint - The successful landing of the Asia Link Cable (ALC) international submarine cable in Lingshui marks a significant step in enhancing Hainan's international communication capabilities and contributes to the construction of an efficient, secure, and intelligent global information interconnection channel in the Asia-Pacific region [1][2] Group 1: Project Overview - The ALC international submarine cable spans over 6,100 kilometers, connecting Hong Kong and Singapore, with branches extending to the Philippines, Vietnam, Brunei, Malaysia, and Lingshui, Hainan [1] - The specific branch that landed in Lingshui is 590 kilometers long and represents the first direct international submarine cable built by China Telecom in Hainan [1] Group 2: Technical Capabilities - The ALC cable utilizes advanced high-capacity optical fiber transmission technology, providing a transmission bandwidth of up to 20 Tb/s, equivalent to the data required to transmit over a thousand HD movies per second [2] - This high bandwidth supports various applications, including cross-border financial transactions, real-time cloud rendering, ultra-high-definition video transmission, and cross-border computing power scheduling [2] Group 3: Future Developments - Following the landing of the ALC cable, China Telecom plans to accelerate the development of international communication infrastructure in Haikou and Sanya, integrating deeply into the overall construction of the free trade port [2] - The company aims to leverage new-generation information technologies such as 5G, cloud computing, big data, and artificial intelligence to provide international communication services for Chinese enterprises going global and multinational companies entering the region [2] - The initiative is expected to promote the development of cross-border data, artificial intelligence, gaming, international tourism, cross-border e-commerce, cross-border finance, and international logistics, contributing to the integration of Hainan's digital economy and real economy [2]

Core Viewpoint - The annual "World Telecommunication and Information Society Day" emphasizes achieving gender equality through digital transformation, advocating for equitable access to digital technologies across different regions and groups, and promoting social inclusion and sustainable development [1] Group 1: AI Development by Telecom Operators - Major telecom operators highlighted the importance of AI in their speeches during the event, indicating a shift towards a new era of technological revolution and industrial transformation driven by AI [2][3] - China Mobile's chairman emphasized the integration of data, computing power, and AI as a new engine for technological innovation, reshaping production, lifestyle, and governance [2] - China Unicom's chairman announced a comprehensive innovation strategy aimed at building a digital future that benefits everyone, with plans to upgrade their infrastructure to support AI applications [2] - China Telecom's chairman stated the company's commitment to embracing AI for strategic upgrades and enhancing social welfare through technology [3] Group 2: AI Products and Services - Guangdong Unicom launched four AI products aimed at enhancing communication for special groups, including a product designed for hearing-impaired individuals that facilitates real-time voice-to-text conversion [3] - Guangzhou Mobile is developing an AI+ ecosystem by integrating capabilities from over 20 partner companies, focusing on various AI applications [5] Group 3: 10-Gigabit Optical Network Initiatives - The construction of a 10-gigabit optical network was a key focus, with China Unicom planning to accelerate its development to support high-speed connectivity in communities and industrial parks [7] - The Ministry of Industry and Information Technology announced plans for pilot projects to deploy 10-gigabit optical networks by the end of 2025, with 86 cities already initiating trials [7] - Guangdong Telecom has completed the delivery of its first "10-gigabit household" and launched a promotional campaign for 10-gigabit broadband services [8] - Guangzhou Mobile announced plans to establish 10 benchmark communities and parks with 10-gigabit network coverage, aiming to enhance user experience and service quality [9]