Market Overview - The FTSE China A50 index components showed mixed performance in the banking and insurance sectors, while the semiconductor sector experienced gains [1] - The liquor and automotive sectors faced declines, with notable drops in companies like Kweichow Moutai and BYD [1] Sector Performance Banking and Insurance - China Pacific Insurance had a market capitalization of 363.96 billion, with a trading volume of 4.60 billion, showing a slight decrease of 0.03 (-0.06%) [3] - Ping An Insurance reported a market cap of 321.32 billion and a trading volume of 11.02 billion, also down by 0.03 (-0.09%) [3] - China Life Insurance had a market cap of 971.70 billion, with a trading volume of 6.91 billion, increasing by 0.02 (+0.24%) [3] Liquor Industry - Kweichow Moutai led with a market cap of 1,979.70 billion, experiencing a decline of 38.18 (-2.37%) [3] - Shanxi Fenjiu and Wuliangye Yibin also saw decreases of 4.09 (-2.00%) and 1.97 (-1.50%) respectively [3] Semiconductor Sector - Northern Huachuang had a market cap of 232.15 billion, with a trading volume of 12.09 billion, increasing by 6.00 (+1.40%) [3] - Cambrian and Haiguang Information reported market caps of 278.94 billion and 324.71 billion, with slight increases [3] Automotive Sector - Great Wall Motors had a market cap of 295.13 billion, down by 5.64 (-1.45%) [3] - BYD reported a market cap of 1,165.57 billion, decreasing by 0.36 (-1.52%) [3] Energy Sector - China Petroleum & Chemical Corporation had a market cap of 1,500.77 billion, with a trading volume of 3.59 billion, increasing by 0.03 (+0.53%) [3] - China National Offshore Oil Corporation reported a market cap of 690.09 billion, with a slight increase of 0.10 (+0.62%) [3] Other Sectors - The electric power sector saw China Yangtze Power with a market cap of 743.34 billion, increasing by 0.05 (+0.53%) [4] - In the food and beverage sector, Haitian Flavoring & Food had a market cap of 238.77 billion, increasing by 0.36 (+0.85%) [4] - The logistics sector featured SF Holding with a market cap of 273.56 billion, decreasing by 0.35 (-0.62%) [4]

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]

【下周公布业绩】 小米集团(01810.HK)、同程艺龙(00780.HK)、波司登(03998.HK)、周大福(01929.HK)、石药集团 (01093.HK) 【分拆上市】 复星医药(02196.HK)：Gland Pharma已于印度时间11月20日在孟交所及印交所上市 李氏大药厂(00950.HK)分拆兆科眼科上市获联交所批准 【财务数据】 中国心连心化肥(01866.HK)前三季度纯利升2%至4.2亿元 车用尿素溶液销量大增340% 信利国际(00732.HK)中期净利4.08亿港元 同比增长141.7% 南旋控股(01982.HK)中期纯利减少12%至2.385亿元 中期息3.8港仙 美高域(01985.HK)中期净利增长73%至2178万港元 中期息0.05港元 电讯首科(03997.HK)中期纯利511.6万港元 同比增长56.8% 荣智控股(06080.HK)中期亏损约2750万港元 东方报业集团(00018.HK)中期纯利升139.16%至8732.3万港元 美建集团(00335.HK)中期净利3922.9万港元 同比减少8.89% 万嘉集团(00401.HK)中期亏损收窄133.53% ...

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]

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 - Guangdong Unicom launched four AI-based products aimed at enhancing communication and support for special groups, aligning with the digital development strategy in the Guangdong-Hong Kong-Macao Greater Bay Area [1][3]. Group 1: Product Offerings - The four AI products include "AI Bay Area" for cross-border communication, "AI for Small Businesses" providing digital solutions for SMEs, "AI Family" integrating multiple smart home functions, and "AI for Disability" designed for hearing-impaired individuals [3][5]. - "AI Bay Area" enables seamless communication across the Greater Bay Area without the need for switching networks [5]. - "AI for Small Businesses" offers a one-stop digital store solution, including network communication and smart applications [5]. - "AI Family" combines functionalities such as a set-top box, smart camera, smart speaker, video phone, and screen mirroring device to cater to all family members [5]. - "AI for Disability" features real-time voice-to-text conversion to facilitate communication for hearing-impaired users [5]. Group 2: Strategic Collaborations - Guangdong Unicom signed strategic cooperation agreements with the Guangdong Disabled Persons' Federation and cities like Guangzhou, Shenzhen, Dongguan, and Foshan to promote technology-assisted rehabilitation products [3][5]. - The collaboration aims to integrate technology with various fields such as disability prevention, rehabilitation, education, and employment to enhance the quality of life for disabled individuals [5]. Group 3: Commitment to Social Responsibility - Guangdong Unicom has previously launched initiatives like "Chanting King Card" and "Chanting Vision" to support disabled individuals, establishing a "green channel" in service centers and providing sign language services [7]. - The company has served over 12,000 individuals annually through offline assistance activities and has a service hotline that handles over 35,000 requests each year, achieving a 100% response rate for human services [7].

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]

Core Viewpoint - The launch of the computing power internet trial network aims to address the growing demand for computing power in the digital economy, facilitating the interconnection of distributed computing resources across different regions and entities [1][2]. Group 1: Definition and Importance of Computing Power - Computing power refers to the ability to process data, which is essential for various applications such as AI, big data, and cloud computing, impacting daily life significantly [2]. - In the digital economy, computing power is likened to essential public resources like water and electricity, highlighting its critical role in serving diverse industries [2]. Group 2: Current Challenges - There is a notable supply-demand imbalance in computing power, driven by rapid advancements in technology, while the resources remain fragmented and lack unified interfaces and protocols [2]. - The need for a system that allows users to access computing resources anytime and anywhere is emphasized, necessitating the interconnection of computing resources [2][3]. Group 3: Functionality of Computing Power Internet - The computing power internet aims to aggregate distributed computing resources online, enabling the transmission of computing tasks and data to appropriate resource pools [2]. - It is compared to the human circulatory system, where computing resources act as the heart and the computing power internet serves as the veins supplying "blood" to the digital economy [3]. Group 4: Benefits to Society - The computing power internet can enhance medical diagnostics and personalized treatment plans through AI, and improve user experiences in entertainment via cloud rendering and gaming [4]. - The construction of the computing power internet is expected to accelerate the arrival of a consumer-level computing power application era, making applications more accessible and flexible [4]. Group 5: Future Focus Areas - Key efforts for the computing power internet include deploying trial networks in critical regions and industries, enhancing resource perception and demand-supply matching capabilities [5]. - There is a focus on overcoming key technological challenges in areas such as computing power identification, scheduling, and cross-domain transmission, alongside building a technical standards system [5]. - Expanding industry applications in fields like AI, scientific computing, and smart manufacturing is crucial for deep integration with sectors such as healthcare, education, and intelligent manufacturing [5].

Core Insights - The article highlights the innovative contributions of three young technology professionals from China Unicom, showcasing their efforts in transforming traditional industries through technology and addressing national needs [1][5][6] Group 1: Innovations in Communication and Industry - The "Yiying" AI model developed by He Shanshan enables personalized clothing design in just 3 seconds, revolutionizing the fashion industry [1] - The team led by He Shanshan implemented 5G and IoT technologies in textile workshops, significantly improving operational efficiency and allowing for real-time monitoring of production issues [1] - The "Digital Twin" technology created by Zhu Mengyuan allows for virtual management of base stations, reducing the time required for planning and maintenance from days to hours [3] Group 2: Marine Communication Breakthroughs - The "Woyu Tong" series developed by Chi Kexun has drastically reduced marine communication costs from 500 RMB per 1.2GB to a more accessible level, enhancing connectivity for fishermen and tourists [2] - Chi Kexun's team has integrated 5G technology with IoT and AI to create a comprehensive marine observation network, achieving significant cost savings compared to traditional methods [2] Group 3: Youth Talent Development and Support - China Unicom has established a "Youth Talent Support System" to nurture young innovators, providing tailored mentorship and resources to enhance their capabilities [5] - The company has initiated various programs to promote youth innovation, including the "Five Chains Integration" strategy, which focuses on enhancing personnel, funding, and organizational support for young talent [5] - The article emphasizes the importance of transitioning from technical thinking to user-centric approaches in driving industrial innovation [4]