Core Viewpoint - The introduction of 5G-A (5G-Advanced) marks a significant upgrade in mobile communication technology, but its impact on personal users remains limited, prompting operators to consider targeted deployment rather than full coverage [1][2][9]. Group 1: 5G-A Overview - 5G-A is an upgraded version of 5G, characterized by higher speeds, improved upload capabilities, and lower latency [7][9]. - Users have reported that the experience of connecting to 5G-A does not significantly differ from 5G, leading to questions about the necessity of widespread deployment [5][7]. Group 2: Operator Strategies - Major telecom operators are cautious about investing heavily in 5G-A due to the ongoing recovery period of 4G investments and the substantial costs associated with 5G infrastructure [9][11]. - Operators are focusing on specific scenarios where 5G-A can enhance user experience, such as in crowded areas like train stations and sports venues, rather than pursuing a blanket coverage strategy [8][9]. Group 3: Industrial Applications - 5G-A is expected to play a crucial role in industrial applications, including IoT, vehicle networking, and smart manufacturing, where its capabilities can lead to significant efficiency improvements [12]. - Successful implementations of 5G-A in industrial settings have already been reported, showcasing its potential to enhance operational efficiency and reduce costs [12].

Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [2] Core Viewpoints - The report suggests that the long-standing trade friction between China and the U.S. may ease, leading to potential benefits for the Chinese industry [10][11] - It highlights that Chinese manufacturers are becoming indispensable in the international supply chain, particularly in the IoT module market and AI hardware supply [11] - The report anticipates adjustments in AI chip export restrictions, which could alter the competitive landscape in the AI sector [12][13] Summary by Sections Investment Strategy - **U.S.-China Trade Relations**: The report indicates that U.S.-China negotiations may begin, with expectations of tariff reductions, particularly on the current 145% tariffs imposed by the U.S. [10] - **Chinese Industry Benefits**: It notes that Chinese firms dominate the global IoT module market, holding over 50% market share among the top three manufacturers [11] - **AI Chip Export Regulations**: The report discusses potential relaxations in AI chip export restrictions by the U.S., which could significantly impact American companies, especially in the context of the growing Chinese AI market projected to reach $50 billion [12][13] Industry News - **Low-altitude Economy in Wuhan**: Wuhan plans to establish 1,000 low-altitude takeoff and landing sites, aiming for a 20% increase in the low-altitude economy [14] - **Alibaba's ZeroSearch**: Alibaba has open-sourced the ZeroSearch model, significantly reducing costs by over 87% while enhancing search capabilities [15] - **Starlink in India**: Starlink has received approval to provide satellite communication services in India, which may accelerate satellite internet development globally [16] - **Shenzhen's 5G Network**: Shenzhen is constructing a comprehensive "5G + millimeter wave + satellite" network, aiming for full coverage and improved infrastructure [17] Weekly Review and Focus - **Market Performance**: The telecommunications sector saw a slight increase of 0.02%, underperforming compared to major indices, with notable gains in optical modules and low-altitude economy sectors [18][21] - **Investment Recommendations**: The report suggests focusing on companies involved in the overseas supply chain, such as Yiyuan Communication and Industrial Fulian, as well as long-term attention on major telecom operators and infrastructure providers [22]

Core Viewpoint - The communication industry is experiencing significant growth in Q1 2025, particularly in sectors such as optical modules, Beidou navigation, and AI supply chains, while some traditional sectors are facing declines in profitability [2][3][4]. Summary by Sections Overall Industry Performance - In 2024, the communication industry (A-shares) with 170 companies achieved a net profit of 208.29 billion yuan, a year-on-year increase of 4.4%. Excluding the three major operators, the net profit was 27.88 billion yuan, a decrease of 4.2% [2]. - In Q1 2025, the same 170 companies reported a net profit of 52.51 billion yuan, a year-on-year increase of 5.4% and a quarter-on-quarter increase of 88.3%. Excluding the three major operators, the net profit was 10.41 billion yuan, a year-on-year increase of 13.7% [2]. Sub-industry Performance in 2024 - The sub-industry net profit growth rates for 2024, ranked from highest to lowest, are as follows: - Optical Modules: 12.30 billion yuan, +113% - IoT: 1.18 billion yuan, +69% - AI Supply Chain: 43.59 billion yuan, +37% - Operators: 180.41 billion yuan, +6% - Server Supply Chain: 14.69 billion yuan, +3% - Fiber Optics and Cables: 6.28 billion yuan, -4% - Main Equipment: 8.85 billion yuan, -7% - Connectors and Cables: 7.49 billion yuan, -7% - IDC: 5.01 billion yuan, -9% - Switches: 1.61 billion yuan, -30% - Enterprise Communication: 3.25 billion yuan, breakeven - Beidou Navigation: -0.05 billion yuan, N/A - Network Visualization: -0.33 billion yuan, N/A - Antenna RF: -0.005 billion yuan, N/A - Satellite Communication: -0.49 billion yuan, N/A - Private Networks: -3.33 billion yuan, N/A [3]. Sub-industry Performance in Q1 2025 - The sub-industry net profit growth rates for Q1 2025, ranked from highest to lowest, are as follows: - Beidou Navigation: 0.13 billion yuan, +193% - Optical Modules: 4.50 billion yuan, +110% - AI Supply Chain: 12.82 billion yuan, +65% - IoT: 0.34 billion yuan, +18% - Fiber Optics and Cables: 1.34 billion yuan, +11% - Server Supply Chain: 3.94 billion yuan, +4% - Operators: 42.10 billion yuan, +4% - Enterprise Communication: 0.68 billion yuan, +0% - Connectors and Cables: 1.90 billion yuan, -6% - Main Equipment: 2.35 billion yuan, -10% - Switches: 0.38 billion yuan, -16% - IDC: 1.11 billion yuan, -20% - Satellite Communication: 0.07 billion yuan, -31% - Private Networks: -0.03 billion yuan, -112% - Network Visualization: -0.17 billion yuan, N/A - Antenna RF: -0.036 billion yuan, N/A [4]. Top Companies by Profit in Q1 2025 - The top 10 companies by net profit in Q1 2025 are: - China Mobile: 30.63 billion yuan, +3% - China Telecom: 8.86 billion yuan, +3% - China Unicom: 2.61 billion yuan, +7% - ZTE: 2.45 billion yuan, -11% - Zhongji Xuchuang: 1.58 billion yuan, +57% - Runze Technology: 0.43 billion yuan, -9% - Unisplendour: 0.35 billion yuan, -16% - NewEase: 1.57 billion yuan, +385% - Zhongtian Technology: 0.63 billion yuan, -1% - Yilian Network: 0.56 billion yuan, -1% [5][8]. Top Companies by Year-on-Year Growth in Q1 2025 - The top 10 companies by year-on-year growth in net profit for Q1 2025 are: - Bochuang Technology: 0.09 billion yuan, +322652% - Ruijie Networks: 0.11 billion yuan, +4544% - Guangha Communication: 0.0009 billion yuan, +1034% - Shijia Photon: 0.093 billion yuan, +1004% - Yongding Co.: 0.29 billion yuan, +961% - NewEase: 1.57 billion yuan, +385% - Pingzhi Information: 0.011 billion yuan, +287% - Yiyuan Communication: 0.21 billion yuan, +287% - Gongjin Co.: 0.022 billion yuan, +268% - Xingwang Ruijie: 0.042 billion yuan, +265% [9].

Group 1 - The event "Zheng Zheng Ri Shang Qing Chun Fei Yang" concert was successfully held with nearly 20,000 attendees, showcasing the robust 5G network capabilities of Shandong Unicom Weifang branch [1][3] - A specialized team of 30 was formed to ensure efficient communication network support, completing venue surveys and base station designs three weeks in advance [3][4] - The network optimization included the addition of 14 high-performance 5G base stations and 18 4G devices, along with the expansion of 12 surrounding base stations [3][4] Group 2 - Innovative 5G Massive MIMO technology was deployed to manage high traffic, ensuring stable connectivity for nearly 1,000 concurrent users per base station during peak times [4][5] - The concert achieved a 99.9% 5G network connectivity rate, with an average download speed exceeding 200 Mbps and total data transmission surpassing 1.5 TB [5][6] - User experience was validated through live testing, demonstrating smooth streaming for over 3,000 concurrent viewers, highlighting the network's performance in high-density scenarios [7] Group 3 - The event is considered a benchmark case for Shandong Unicom in the smart cultural and sports sector, with ongoing efforts to integrate innovative technologies into regular operations [7]

Core Viewpoint - 5G-A, also known as 5.5G, is an upgraded version of traditional 5G, offering significant improvements in speed, latency, and connectivity, thus enhancing various applications and industries [1][2][5]. Group 1: Technical Advancements - 5G-A achieves a maximum data download speed of 10 Gbps, up from 1 Gbps in early 5G, and an upload speed peak of 1 Gbps, increased from 100 Mbps [2]. - It features millisecond-level low latency, making it suitable for real-time communication and applications such as online gaming and remote surgeries [2]. - The technology supports a larger number of devices simultaneously, enhancing connectivity in crowded environments and smart city applications [2][3]. Group 2: Deployment and Testing - Chinese operators have deployed 5G-A test networks across 31 provinces, with the capacity to support 50 million users [3]. - China Mobile has established over 7,000 5G-A base stations in Beijing, aiming to expand coverage to over 300 cities nationwide [8]. Group 3: Application Scenarios - 5G-A introduces new capabilities such as "integrated sensing and communication," which enhances environmental awareness and can be applied in smart homes and traffic management [4]. - The technology is expected to drive automation and efficiency in traditional industries, enabling real-time data sharing across supply chains [5][9]. Group 4: Industry Impact - 5G-A is seen as a productivity engine, facilitating the integration of artificial intelligence and smart manufacturing, thus promoting high-quality development in various sectors [5][9]. - The technology's capabilities are anticipated to support emerging fields like brain-computer interfaces and low-altitude economy applications [11].

5G又有重磅驱动！ 今日午后，A股5G概念股局部异动，武汉凡谷直线涨停，硕贝德涨超10%，创远信科直线拉涨超13%，硕贝德、广哈 通信、华脉科技、瀛通通讯等纷纷冲高。 据央视新闻报道，最近，不少北京移动和联通用户发现手机上出现了5G高级（下文称"5G-A"）信号。报道认为， 5G-A和5G相比，能够在容量、速率、时延、定位、可靠性等方面实现大幅提升，可以带来更快、更优质的通信体 验，并有望实现低成本千亿物联。 据业内专家介绍，中国电信运营商已在全国31个省区部署了5G-A试验网络，初期容量可支持5000万用户。该技术也 已在欧洲、拉美、中东等全球其他地区得到验证。中国移动表示，计划今年投资近100亿元人民币（约合14亿美 元），扩展其5G-A无线网络中基于人工智能的应用，并升级超过40万个基站。中国电信等其他运营商正在多个行业 试点5G-A解决方案。 与此同时，中国联通计划在39个重点城市和300多个城市应用区启动5G-A，覆盖物联网（IoT）、车联网（IoV）和 工业互联网等关键场景。目前，中国移动已公布100个支持5G-A网络的试点城市，并计划在今年年底前将覆盖范围 扩大到全国300多个城市。仅在北京，就 ...

Core Viewpoint - Beijing Unicom has launched the "Dual Ten Thousand Megabit AI Empowerment Action" to enhance digital transformation and improve public services through the integration of dual ten-thousand megabit networks and AI technology [1][2]. Group 1: Company Initiatives - Beijing Unicom has established the first ten-thousand optical network village live broadcast base and the largest ten-thousand experience space in the country, setting an industry benchmark [1]. - The company aims to cover over 50% of residential communities in Beijing with ten-thousand broadband capabilities, reaching nearly 5,000 communities, and has surpassed 1.5 million 5G-A users [2]. - The initiative includes three major measures: "New Network Connection," "New Intelligence Aggregation," and "New Commitment Practice," focusing on network innovation, product ecosystem development, and service enhancement [2]. Group 2: Technological Advancements - The F5G-A and 5G-A ten-thousand networks can achieve download speeds of 10,000 Mbps and upload speeds of 1,000 Mbps, supporting over 200 large smart devices simultaneously [3]. - The integration of AI with dual ten-thousand networks is expected to accelerate the commercialization of the dual ten-thousand industry by 2025, enhancing user experience across various scenarios [3]. Group 3: Industry Expectations - The Beijing Municipal Communications Administration has expressed expectations for Beijing Unicom to continue strengthening network infrastructure, leading industry innovation, and enhancing key technology research and development [1].

Investment Rating - The communication industry is rated as "Overweight" (maintained) [1] Core Insights - The communication industry achieved high growth in Q1 2025, with notable performance in optical modules, Beidou navigation, and AI supply chains. In 2024, 170 companies in the A-share communication sector reported a total net profit attributable to shareholders of 208.29 billion yuan, a year-on-year increase of 4.4%. Excluding the three major operators, the net profit was 27.88 billion yuan, a year-on-year decrease of 4.2%. In Q1 2025, the same 170 companies reported a net profit of 52.51 billion yuan, a year-on-year increase of 5.4% and a quarter-on-quarter increase of 88.3%. Excluding the three major operators, the net profit was 10.41 billion yuan, a year-on-year increase of 13.7% [3][4][5]. Summary by Sections Overall Industry Performance - The communication industry is divided into 16 sub-industries, with the highest net profit growth rates in 2024 being: optical modules (12.30 billion yuan, +113%), IoT (1.18 billion yuan, +69%), AI supply chain (43.59 billion yuan, +37%), and operators (180.41 billion yuan, +6%). Other sectors like optical fiber and cable, main equipment, and IDC showed declines [4]. Q1 2025 Sub-Industry Performance - In Q1 2025, the sub-industry net profit growth rates were led by Beidou navigation (128 million yuan, +193%), optical modules (4.50 billion yuan, +110%), and AI supply chain (12.82 billion yuan, +65%). The operators reported a net profit of 42.10 billion yuan, a year-on-year increase of 4% [5][6]. Top Companies by Net Profit - The top companies by net profit in Q1 2025 included China Mobile (30.63 billion yuan, +3%), China Telecom (8.86 billion yuan, +3%), and China Unicom (2.61 billion yuan, +7%). Notably, New Yi Sheng reported a significant increase of 385% in net profit [6][7][8]. Investment Recommendations - The communication sector still presents structural opportunities, particularly in operators like China Mobile, China Telecom, and China Unicom. Certain growth segments are expected to perform well, suggesting a focus on these areas for investment [8][9].

Core Viewpoint - The article discusses the differences and similarities between two indices related to central enterprise technology: the China Securities National New Central Enterprise Technology Leading Index and the China Securities Chengtong Central Enterprise Technology Innovation Index, highlighting their performance and characteristics in the context of recent market movements. Group 1: Differences Between the Indices - The China Securities National New Central Enterprise Technology Leading Index is customized by Guoxin Investment Co., Ltd., while the China Securities Chengtong Central Enterprise Technology Innovation Index is customized by China Chengtong Group [2]. - The selection methods differ: the National New Index scores based on net profit growth, revenue growth, total market capitalization, and R&D expenditure as a percentage of revenue, whereas the Chengtong Index evaluates based on the number and quality of patents and the implementation of equity incentives [3]. - Industry distribution varies significantly; the National New Index focuses heavily on aerospace and defense, electronics, and semiconductors, with a combined weight of nearly 80%, while the Chengtong Index has a more balanced distribution across telecommunications, aerospace and defense, and electronics, with the top five industries also exceeding 80% [4][6]. Group 2: Key Holdings and Performance - The top ten holdings of the National New Index account for 52.63% of the total, with Hikvision and AVIC Optoelectronics each exceeding 7% [8]. - In contrast, the Chengtong Index's top ten holdings represent 60.34% of the total, with China Telecom, Hikvision, and China Mobile each exceeding 7% [12]. - Historical performance shows that while the one-year returns of both indices are similar, the Chengtong Index outperforms the National New Index over three and five years, with the National New Index exhibiting higher volatility across all time frames [14]. Group 3: Valuation and Commonalities - As of now, the National New Index's TTM price-to-earnings ratio has risen to the historical 100th percentile, indicating a high valuation position [15]. - The Chengtong Index's TTM price-to-earnings ratio is also above the historical 80th percentile, suggesting a similarly high valuation, although its historical data is limited [17]. - Both indices select samples from listed companies under the State-owned Assets Supervision and Administration Commission, aim to reflect the overall performance of central enterprises in technology innovation, and emphasize that R&D expenditure as a percentage of revenue should not be less than 3% [20].

Group 1: Economic Development and Digital Transformation - Jiangxia District in Wuhan has ranked first in the provincial county economic comprehensive ranking for eleven consecutive years and has been included in the national industrial top 100 districts for four years [1] - Wuhan Unicom is actively promoting the transformation of Jiangxia from an agricultural region to a strong agricultural area, focusing on digital rural pilot projects to enhance smart applications and modern governance [1] Group 2: Digital Party Building - Wuhan Unicom has initiated a pilot project in rural areas to enhance the management of party members and activities, addressing challenges such as the dispersion of rural party members [2] - The project includes a closed-loop network platform for collecting and responding to community needs, facilitating a more efficient service delivery system [2] Group 3: Safety and Security in Rural Areas - The company has implemented a comprehensive information feedback system using video monitoring and IoT devices to assist village committees in managing and caring for elderly residents [3] - A closed-loop elderly care model has been established, allowing for timely responses to emergencies and providing practical solutions to community issues [3] Group 4: Tourism Management - Wuhan Unicom has developed a comprehensive management platform that utilizes 5G technology to monitor various data points in rural tourism areas, enhancing visitor experience and safety [4] - The platform has indirectly boosted tourism revenue by over 20 million yuan through improved safety governance [4] Group 5: Agricultural Technology - The company has launched a digital project in Leiling Village, integrating various technologies for real-time monitoring of agricultural conditions, thus facilitating a shift from traditional farming to technology-driven practices [5] - The project includes automated irrigation and environmental monitoring, allowing farmers to optimize crop growth conditions [5]