Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector has seen a 1.00% increase in the 45th week of 2025, ranking 15th among major industries in the Yangtze River region. Year-to-date, the sector has risen by 63.27%, placing it 2nd among the same industries [2][5]. - Lumentum's quarterly performance is strong, with revenue of $530 million for FY26Q1, a year-on-year increase of 58.4%. Over 60% of this revenue comes from cloud and AI infrastructure [6]. - The demand for indium phosphide (InP) laser chips is robust, with a supply-demand gap expected to widen to 25-30% in the coming quarters. Lumentum's production capacity is fully booked for the next six quarters, with an anticipated capacity increase of approximately 40% [6][8]. - The "AI x Space" initiative is accelerating, with companies like Starcloud, SpaceX, and Google launching projects to establish in-orbit computing capabilities, marking the beginning of a new era for space data centers [7][8]. Summary by Sections Market Performance - The communication sector's stock performance has been notable, with significant gains in individual stocks such as Keda (+24.6%), Yuanjie Technology (+16.2%), and Yihua Co. (+12.2%) [5]. Company Analysis - Lumentum's revenue growth is driven by strong shipments of InP laser chips, with component revenue reaching $380 million, a year-on-year increase of 64% [6]. - The company is transitioning from 3-inch to 4-inch wafer processes, focusing on cost and yield improvements [6]. Investment Recommendations - The report recommends several companies across different segments: - Telecom Operators: China Mobile, China Telecom, China Unicom - Optical Modules: Zhongji Xuchuang, Xinyi Technology, Tianfu Communication - Liquid Cooling: Yingweike - Hollow Core Fiber: Fenghuo Communication, Hengtong Optic-Electric - Domestic Computing: Runze Technology, Guanghuan New Network - AI Applications: Boshi Jie, Heertai - Satellite Applications: Huace Navigation, Haige Communication [8].

Group 1 - China Unicom's Gansu branch former Party Secretary and General Manager Sun Quan is under investigation for serious violations of discipline and law [1] - The investigation is being conducted by the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at China Unicom [1] - The case highlights ongoing scrutiny and regulatory actions within state-owned enterprises in China [1]

中央纪委国家监委网站11月11日通报，据中央纪委国家监委驻中国联通纪检监察组、河北省纪委监委消 息：中国联通甘肃省分公司原党委书记、总经理孙全涉嫌严重违纪违法，目前正接受中央纪委国家监委 驻中国联通纪检监察组纪律审查和河北省监委监察调查。 ...

Core Insights - Quantum technology is viewed as the "key" to the next generation of information technology revolution, with significant breakthroughs in both policy and technology [1][3]. Policy Developments - The Anhui Provincial Development and Reform Commission announced that quantum technology is transitioning from technological breakthroughs to large-scale industrial applications, aiming to implement nearly 300 application scenarios by the end of this year and 1,000 by 2027 [1]. - The United Nations Educational, Scientific and Cultural Organization (UNESCO) has declared 2025 as the "International Year of Quantum Science and Technology" to commemorate the 100th anniversary of quantum mechanics [3]. Technological Advancements - A team from the Chinese Academy of Sciences has made significant progress in neutral atom quantum computing, proposing a new architecture based on fiber arrays that addresses challenges in achieving high parallelism, speed, and stability [1]. - Researchers at the University of Chicago have theoretically extended the connection distance between quantum computers to 2,000 kilometers, making the construction of a global quantum internet more feasible [2]. Industry Growth Potential - Quantum technology, encompassing quantum computing, quantum communication, and quantum precision measurement, is identified as a future industry with substantial growth potential, as highlighted in the 14th Five-Year Plan [3]. - The global quantum computing industry is projected to grow from $4.7 billion in 2023 to over $800 billion by 2035 [3]. R&D Investment - Over 60 companies in the A-share market are involved in quantum technology, with a total R&D expenditure of 69.47 billion yuan, accounting for 3.86% of total revenue [4]. - Among these, 35 companies reported R&D expenses exceeding 100 million yuan in the first three quarters, with seven companies surpassing 1 billion yuan [5]. Key Players and Financial Metrics - Notable companies include Guoxin Technology, which has the highest R&D expense-to-revenue ratio at 89.03%, and has successfully commercialized quantum security chips [5][6]. - Other companies with significant R&D investments include Suzhou Keda, Tianrongxin, and Digital Certification, with varying R&D expense ratios [5][6]. Institutional Interest - Institutional interest is high for companies like ZTE Corporation and China Mobile, with ZTE receiving ratings from 23 institutions [7]. - Forecasts indicate that nine companies are expected to achieve net profit growth rates exceeding 15% from 2025 to 2027 [7]. Market Predictions - Several stocks, including China Haifang and Keda Technology, are projected to have significant upside potential based on institutional target prices [8].

Group 1 - The core point of the article is that Unicom Smart Network Technology Co., Ltd. has initiated the listing guidance process, with China International Capital Corporation serving as the advisory institution [1] - China United Network Communications Co., Ltd. directly holds 68.88% of the shares in Unicom Smart Network Technology Co., Ltd. [1] - Additionally, China United Network Communications Co., Ltd. holds an indirect stake of 0.33% through its wholly-owned subsidiary, Unicom Venture Capital [1]

Core Viewpoint - The article discusses the temporary suspension of mobile phone cards due to anti-fraud measures and provides recovery guidelines from the four major telecom operators in China. Group 1: China Telecom - Online channels: Users can process recovery through public accounts, mini-programs, and online service halls (specific methods can be found in the verification notification SMS) [1][17] - Offline channels: Users can bring their ID and phone card to any China Telecom service hall nationwide (specific locations can be queried via local 10000 service) [1][17] Group 2: China Mobile - Online channels: Users can click the link in the notification SMS or call the 10086 customer service hotline for self-service recovery (specific methods can be found in the verification notification SMS) [2][18] - Offline channels: Users can bring their ID and phone card to any China Mobile service hall nationwide (specific locations can be queried via local 10086 service) [2][18] Group 3: China Unicom - Online channels: Users can apply for recovery by searching for the "self-service recovery" interface on the China Unicom app homepage or through public accounts and mini-programs (specific methods can be found in the verification notification SMS) [3][19] - Offline channels: Users can bring their ID and phone card to any China Unicom service hall nationwide to complete real-person authentication [4][19] Group 4: China Broadcasting Network - Online channels: Users can download the China Broadcasting Network app via the link in the notification SMS and complete recovery after passing the identity verification. The app usage does not incur data charges [5][20] - Offline channels: Users can visit any China Broadcasting Network service hall, providing their ID and the phone card for real-person authentication to complete recovery [5][20]

Core Viewpoint - Unicom Smart Network Technology Co., Ltd. (Smart Network Technology) has initiated the listing guidance process, signing an agreement with China International Capital Corporation (CICC) on November 4, 2023 [1][3]. Group 1: Company Overview - Smart Network Technology was established on August 7, 2015, with a registered capital of 246.796148 million yuan [2]. - The controlling shareholder is China United Network Communications Group Co., Ltd., which directly holds 68.88% of the shares, while its wholly-owned subsidiary, Unicom Venture Capital, indirectly holds 0.33% [2][4]. Group 2: Listing Plans - The company aims to split from China Unicom and list on the Shenzhen Stock Exchange's ChiNext board, which is expected to enhance its innovation capabilities, operational quality, and competitiveness [3][4]. - This move is anticipated to leverage capital market resources to seize strategic opportunities in the vehicle networking industry and increase investment in key technology research and development [4]. Group 3: Historical Context - China Unicom previously planned to spin off Smart Network Technology for A-share listing in August 2021 and again in March 2023 for the Sci-Tech Innovation Board, but these plans were halted due to regulatory adjustments [4].

Group 1 - The core point of the article is that Unicom Smart Network Technology Co., Ltd. has initiated the listing guidance process, with China International Capital Corporation (CICC) serving as the advisory institution [1] - The guidance filing report indicates that China United Network Communications Co., Ltd. directly holds 68.88% of the shares in the company [1] - Additionally, China United Network Communications Co., Ltd. indirectly holds 0.33% of the shares through its wholly-owned subsidiary, Unicom Venture Capital [1]

Investment Rating - The communication industry is rated as "Overweight" [10] - The communication equipment manufacturing sector is also rated as "Overweight" [10] Core Insights - The communication sector saw a significant increase in holdings, with the top ten funds holding 7.26% of the communication sector, up 3.58 percentage points from the previous quarter, marking the highest quarterly holding ratio since 2019 [2][3] - The sector's overweight ratio increased to 3.36%, up 2.90 percentage points from the previous quarter [3][14] - Key areas of investment include optical modules, liquid cooling, optical chips, and optical fiber cables, while operators, data centers, and Beidou systems saw reduced holdings [3][14] - The TTM price-to-earnings ratio for the communication sector as of November 7, 2025, is 43.62x, which is at the 69.3% historical percentile since early 2011 [3][14] Summary by Sections Market Performance - The communication index rose by 0.92% last week, while the Shanghai Composite Index increased by 1.08% and the Shenzhen Component Index by 0.19% [2][13] Fund Holdings - In Q3 2025, public funds increased their holdings in the communication sector, with significant increases in companies like Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Yingweike, and Yuanjie Technology, with total market value increases of 82.43 billion, 78.93 billion, 9.29 billion, 4.06 billion, and 3.79 billion respectively [3][25] - The top five companies by increase in holdings during Q3 2025 saw stock price increases of 176.8%, 188.0%, 110.8%, 169.2%, and 120.3% respectively [25][26] Key Companies and Recommendations - Recommended companies include Xinyi Sheng, Zhongxing Communication, Ruijie Network, China Mobile, China Telecom, China Unicom, and Hengtong Optoelectronics, all rated as "Buy" [10][58] - The report highlights the potential for AI computing chain investments, particularly in optical modules and related technologies [2][3] Valuation and Future Outlook - The report anticipates continued growth in the AI computing sector, with companies like Xinyi Sheng expected to benefit significantly from the demand for high-speed products [59][62] - Adjustments to profit forecasts for companies like Zhongxing Communication and Ruijie Network reflect a cautious outlook due to market conditions, but long-term growth potential remains [59][62]

Market Overview - The communication services sector increased by 0.41% on November 10, with the Shanghai Composite Index closing at 4018.6, up 0.53%, and the Shenzhen Component Index closing at 13427.61, up 0.18% [1] Top Gainers in Communication Services - The top performer was "线上线下" with a closing price of 120.00, a rise of 20.00%, and a trading volume of 92,800 shares, totaling a transaction value of 2.556 billion [1] - "中富通" followed with a closing price of 16.19, up 12.67%, with a trading volume of 626,400 shares, amounting to 1.020 billion [1] - "三维通信" closed at 11.84, increasing by 3.32%, with a trading volume of 1.2125 million shares, totaling 1.422 billion [1] Top Losers in Communication Services - "广脉科技" saw a decline of 2.42%, closing at 22.62, with a trading volume of 13,200 shares and a transaction value of 30.1142 million [2] - "宜通世纪" decreased by 1.46%, closing at 6.09, with a trading volume of 249,500 shares [2] - "润建股份" fell by 1.10%, closing at 42.23, with a trading volume of 42,400 shares, totaling 1.79 billion [2] Capital Flow Analysis - The communication services sector experienced a net outflow of 103 million from institutional investors, while retail investors saw a net inflow of 130 million [2] - The top net inflow from retail investors was in "线上线下" with 162.16 million, while "中富通" had a net outflow of 133 million from institutional investors [3] - "三维通信" recorded a net inflow of 62.72 million from institutional investors, indicating strong interest despite overall sector outflows [3]