Core Viewpoint - Microsoft collaborates with Corning and Heraeus to scale up the production of hollow-core fiber (HCF), aiming to enhance the performance and reliability of AI networks and meet the growing demand for network infrastructure [1][2] Group 1: Industry Trends - The trend towards industrialization of hollow-core fiber is clear, with significant potential for demand growth in long-distance data transmission and applications requiring high reliability and low latency [3][4] - Hollow-core fiber can significantly increase transmission speed and reduce latency, achieving approximately one-third lower latency compared to traditional glass-core fibers [3] Group 2: Company Developments - Microsoft acquired Lumenisity in 2022 and launched the world's first hollow-core fiber factory in the UK, with plans to deploy 15,000 kilometers of hollow-core fiber over the next two years [2] - Corning's manufacturing facility in North Carolina will produce HCF for Microsoft, expanding global fiber production and supporting Azure's network deployment [1][2] Group 3: Competitive Landscape - Domestic and international enthusiasm for the industrialization of hollow-core fiber is high, with companies like China Mobile launching commercial lines and Microsoft and Amazon actively promoting its use [4] - The current market for hollow-core fiber is relatively small, but companies with technological and patent advantages are expected to lead, with domestic firms like Hengtong Optic-Electric and Zhongtian Technology positioning themselves well for market share [4][5]

Investment Rating - The report maintains a "Recommended" rating for the communication industry [3]. Core Insights - The enthusiasm for the industrialization of hollow-core fiber optics is high both domestically and internationally, with domestic manufacturers expected to leverage cost and technological advantages to capture a significant market share [2]. - Major companies like Microsoft are actively pursuing the industrialization of hollow-core fiber optics, with plans to increase global production to meet the growing demand for network infrastructure [5]. - The hollow-core fiber optics technology promises to significantly enhance transmission speed and reduce latency, making it a competitive medium for global optical communication [5]. Summary by Sections Industry Overview - The hollow-core fiber optics market is currently small, but manufacturers with technological and patent advantages are in a leading position. Companies like Lumensity and Changfei Fiber Optics are at the forefront, while domestic players such as Hengtong Optic-Electric and Zhongtian Technology are also making strategic moves [2]. Market Dynamics - The report highlights that the demand for multi-mode fiber optics is increasing, and as the industrialization of hollow-core fiber optics accelerates, domestic manufacturers are expected to achieve large-scale shipments and capture a larger market share [2]. Technological Advancements - Hollow-core fiber optics utilize air or inert gas instead of solid fiber cores, which allows for faster signal transmission and reduced latency compared to traditional glass fiber optics. This technology is particularly beneficial for data centers, which are expanding in scale and energy consumption [5]. Investment Recommendations - The report suggests focusing on companies such as Changfei Fiber Optics, Hengtong Optic-Electric, and Zhongtian Technology for potential investment opportunities in the hollow-core fiber optics sector [6].

沪指9月24日上涨0.83%，申万所属行业中，今日上涨的有28个，涨幅居前的行业为电力设备、电子， 涨幅分别为2.88%、2.76%。跌幅居前的行业为银行、煤炭、通信，跌幅分别为0.36%、0.29%、0.01%。 通信行业位居今日跌幅榜第三。 资金面上看，两市主力资金全天净流入197.25亿元，今日有14个行业主力资金净流入，电子行业主力资 金净流入规模居首，该行业今日上涨2.76%，全天净流入资金130.46亿元，其次是计算机行业，日涨幅 为2.52%，净流入资金为50.21亿元。 主力资金净流出的行业有17个，汽车行业主力资金净流出规模居首，全天净流出资金20.64亿元，其次 是通信行业，净流出资金为16.70亿元，净流出资金较多的还有公用事业、食品饮料、银行等行业。 通信行业今日下跌0.01%，全天主力资金净流出16.70亿元，该行业所属的个股共125只，今日上涨的有 93只；下跌的有29只，跌停的有1只。以资金流向数据进行统计，该行业资金净流入的个股有51只，其 中，净流入资金超亿元的有6只，净流入资金居首的是新易盛，今日净流入资金5.13亿元，紧随其后的 是中天科技、中贝通信，净流入资金分别为4. ...

Investment Rating - The report maintains an investment rating of "Recommended" for the communication industry [3]. Core Viewpoints - There is a strong enthusiasm for the industrialization of hollow-core fiber optics both domestically and internationally, with domestic manufacturers expected to leverage cost and technological advantages to capture a significant market share [2]. - Major companies like Microsoft are actively pursuing the industrialization of hollow-core fiber optics, with plans to increase global production to meet the growing demand for network infrastructure [5]. - The hollow-core fiber optics technology promises to significantly enhance transmission speeds and reduce latency, making it a competitive medium for global optical communication [5]. Summary by Sections Industry Overview - The hollow-core fiber optics market is currently small, but manufacturers with technological and patent advantages are in a leading position. Companies like Lumensity and Changfei Fiber Optics are at the forefront, while domestic players such as Hengtong Optic-Electric and Zhongtian Technology are also making strategic moves [2]. Market Dynamics - The report highlights that the demand for multi-mode fiber optics is expected to rise, and as the industrialization of hollow-core fiber optics accelerates, domestic manufacturers will likely achieve large-scale shipments and capture a substantial market share [2]. Technological Advancements - Hollow-core fiber optics utilize air or inert gas instead of solid fiber cores, which allows for faster signal transmission and reduced latency compared to traditional quartz glass fibers. This technology is particularly beneficial for data centers, which are increasingly expanding in scale and energy consumption [5]. Investment Recommendations - The report suggests focusing on companies such as Changfei Fiber Optics, Hengtong Optic-Electric, and Zhongtian Technology for potential investment opportunities in the hollow-core fiber optics sector [6].

Market Overview - On September 24, the communication equipment sector declined by 0.57%, with Shijia Technology leading the losses [1] - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] Stock Performance - Notable gainers in the communication equipment sector included: - Fujida (30.80, +7.06%, 147,600 shares, 450 million CNY) - Dongsoft Zhaibo (18.15, +6.20%, 263,800 shares, 473 million CNY) - Zhongda Technology (18.15, +5.28%, 2,760,000 shares, 4.904 billion CNY) [1] - Major decliners included: - Shijia Technology (17.64, -8.22%, 389,900 shares, 697 million CNY) - Guangku Technology (124.62, -8.14%, 260,200 shares, 3.236 billion CNY) - Changfei Optical Fiber (110.30, -5.94%, 186,700 shares, 2.052 billion CNY) [2] Capital Flow - The communication equipment sector experienced a net outflow of 2.052 billion CNY from institutional investors, while retail investors saw a net inflow of 2.012 billion CNY [2][3] - Key stocks with significant capital flow included: - Xinyi Sheng (48.8 million CNY net inflow from institutional investors) - Zhongtian Technology (43.3 million CNY net inflow from institutional investors) [3]

Investment Rating - The report indicates a positive outlook for the communication industry, suggesting a potential shift towards a "stronger gets stronger" dynamic due to technological and capital barriers [1]. Core Insights - The communication industry is experiencing a transformation driven by technology and policy support, with a shift in demand from traditional to emerging services [1][39]. - The industry is expected to enter a recovery phase in Q3 2025, with capital expenditure expansion driven by technological breakthroughs and new infrastructure initiatives [39]. - The demand for AI computing power, accelerated commercialization of 5G-A, breakthroughs in 6G technology, and the rise of the "low-altitude economy" are key factors driving the industry's upgrade [1][39]. Supply Capacity Analysis - The report highlights the growth in the optical communication sector, particularly in high-speed optical modules, driven by AI computing demand and increased capital expenditure from global cloud service providers [3][10]. - The domestic penetration rate of traditional optical fiber and cable is nearing saturation, prompting companies to accelerate international expansion [5][4]. - The communication equipment integration market is recovering, with the Asia-Pacific region leading in 5G system integration and services [6]. Demand Matching Capability Analysis - The demand for optical modules, especially high-speed products for data centers, is robust, with a projected shipment increase from 6.4 million units in 2023 to over 31.9 million units by 2025 [3]. - The communication equipment market is experiencing strong growth, with a year-on-year revenue increase of 18.9% in Q2 2025, despite a contraction in 5G investment [11]. - The telecommunications service sector is seeing a shift towards emerging businesses, with significant growth in AI computing and quantum communication services [15][30]. Industry Chain Position Analysis - The communication industry is characterized by a high degree of market concentration, particularly among leading companies in optical communication and equipment integration [24][27]. - The report notes that traditional communication services are facing saturation, with new business areas becoming the core of competitive differentiation [28]. Innovation Capability Analysis - The report emphasizes the importance of policy support for technological advancements, particularly in AI, 6G, and satellite communication [31][32]. - Significant R&D investments are being directed towards AI and 6G technologies, with major companies like China Mobile leading initiatives in these areas [34]. Credit Rating Situation Analysis - The communication industry is witnessing a favorable credit environment, with a total bond issuance of 17.35 billion yuan in Q2 2025, primarily from leading companies [36][37]. - The report indicates that the dual barriers of technology and capital for leading firms will become more pronounced, reinforcing the trend towards market consolidation [36]. Cycle Development Outlook - The communication industry is expected to see revenue and profit growth, with cash flow recovery anticipated in Q3 2025 [38]. - The report forecasts a transition to an expansion phase driven by new infrastructure investments and a focus on domestic demand [39]. Key Segment Development Trends - The optical communication sector is evolving towards ultra-high-speed, intelligent, and integrated solutions, supporting the AI computing network [40]. - The commercialization of 5G-A and advancements in 6G technology are expected to enhance the capabilities of communication equipment integrators [41]. - Telecommunications services are anticipated to diversify, with new opportunities arising from the low-altitude economy and satellite internet developments [42].

Core Viewpoint - Zhongtian Technology achieved a net profit attributable to shareholders of 1.568 billion yuan in the first half of the year, representing a year-on-year growth of 7.38% [1] Financial Performance - In Q2, the net profit attributable to shareholders was 940 million yuan, showing a year-on-year increase of 14.09% [1] - Revenue by segment for the first half included: - Marine business revenue of 2.896 billion yuan, up 37.19% year-on-year [1] - Power grid business revenue of 9.975 billion yuan, an increase of 11.97% year-on-year [1] - New energy business revenue of 2.630 billion yuan, growing by 13.69% year-on-year [1] - Profit margins improved quarter-on-quarter, indicating a potential for sustained profitability [1] Order Backlog - The energy network sector has an order backlog of approximately 30.6 billion yuan, with marine series orders around 13.3 billion yuan and power grid construction orders about 15.5 billion yuan, providing strong support for future growth [1] Product Development - The company has achieved mass production of 112G high-speed copper cables, meeting the urgent demand for low-latency transmission in data centers and AI computing clusters [1] - A 224G foamed FEP high-speed copper cable is under development, with mass production expected in Q4, laying a solid technical foundation for future ultra-high-speed data transmission scenarios [1] Profit Forecast - Adjusted net profit forecasts for 2025-2027 are 3.7 billion yuan, 4.5 billion yuan, and 5.5 billion yuan, respectively, down from previous estimates of 3.9 billion yuan, 4.9 billion yuan, and 6 billion yuan [1] - Corresponding PE valuations for 2025-2027 are projected at 16, 13, and 11 times [1] - The company maintains a "buy" rating [1]

Group 1 - The report highlights an increase in the daily return volatility of actively managed equity funds heavily invested in overseas computing power since August 25, indicating a rising correlation with the overseas computing power index since June [1][22][23] - The report suggests that the adjustment level of actively managed equity funds focused on overseas computing power chains will not significantly impact the leading companies in this sector [1][24] - The report identifies a divergence in market views on the main overseas computing power chain, with a notable increase in investment during the Q2 pullback period [1][22][23] Group 2 - The report indicates that the sentiment indicators based on the number of consecutive limit-up stocks and promotion rates are crucial for assessing short-term market sentiment [2][25][26] - In a bull market, the average consecutive limit-up stocks can maintain around 6, with promotion rates typically above 25%, showing a strong positive correlation with the next-day performance of limit-up stocks [2][25][26] - The report notes that certain sectors, such as photolithography machines and AI-related industries, are currently performing strongly, driven by policy support and technological advancements [2][27][28] Group 3 - The report on the construction materials sector suggests that the recent interest rate cut by the Federal Reserve may benefit undervalued construction material stocks, particularly in the Xinjiang region [18][21][22] - The report emphasizes the expected increase in demand for cement due to major infrastructure projects in Xinjiang, with significant growth in fixed asset investment [18][21][22] - Key companies to watch in the construction materials sector include Qingsong Construction and Tianshan Shares, which are expected to benefit from these trends [18][21][22] Group 4 - The report on the computer industry discusses the emergence of AI agents and their potential to reshape the software payment landscape in China, with a focus on cost reduction and high ROI applications [17][21][22] - It highlights that the gap between domestic and international AI capabilities is expected to narrow by Q4 2024, with several Chinese companies launching competitive products [17][21][22] - The report anticipates a significant transformation in the white-collar labor market due to the empowerment of AI agents across various industries [17][21][22] Group 5 - The report on Zhongtian Technology indicates a positive trend in Q2 performance, with revenue growth of 10.19% year-on-year and a notable increase in net profit [36][37] - The company is expanding its presence in the AI sector and has several significant projects in the pipeline, particularly in offshore wind power [36][37] - The report projects a strong future growth trajectory supported by a robust order backlog in the energy network sector [36][37]

Core Insights - Company achieved a revenue of 23.6 billion yuan in the first half of 2025, representing a year-on-year growth of 10.19%, with a net profit attributable to shareholders of 1.568 billion yuan, up 7.38% year-on-year [1] Financial Performance - In Q2, the company reported a revenue of 13.844 billion yuan, reflecting a year-on-year increase of 5.08%, and a net profit attributable to shareholders of 940 million yuan, which is a 14.09% year-on-year growth [2] - The company’s gross margin for the first half of the year was 15.07%, with a net margin of 6.70%. In Q2, the gross margin improved to 15.41%, up 0.81 percentage points quarter-on-quarter, and the net margin increased to 6.91%, up 0.51 percentage points quarter-on-quarter and 0.64 percentage points year-on-year [4] Business Segments - The marine segment showed rapid growth, achieving a revenue of 2.896 billion yuan in the first half of the year, a year-on-year increase of 37.19%. The grid business generated 9.975 billion yuan, up 11.97% year-on-year, while the renewable energy segment reported a revenue of 2.630 billion yuan, growing by 13.69% year-on-year [3] Future Growth Potential - The company has a strong order backlog, with approximately 30.6 billion yuan in orders in the energy network sector, including about 13.3 billion yuan for marine projects and 15.5 billion yuan for grid construction, which supports sustained rapid growth [5] Technological Advancements - The company is making strides in AI and various fields, including the development of anti-resonant hollow-core fibers (AR-HCF) and liquid cooling products that outperform industry averages. It has also achieved mass production of 112G high-speed copper cables to meet the demands of data centers and AI computing clusters [6]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company achieved a revenue of 23.6 billion yuan in the first half of 2025, representing a year-on-year growth of 10.19%. The net profit attributable to the parent company was 1.568 billion yuan, up 7.38% year-on-year [1]. - In Q2 alone, the company reported a revenue of 13.844 billion yuan, reflecting a year-on-year increase of 5.08%, while the net profit attributable to the parent company rose by 14.09% to 940 million yuan [2]. - The marine segment showed rapid growth, with revenue reaching 2.896 billion yuan, a year-on-year increase of 37.19%. The power grid business generated 9.975 billion yuan, up 11.97%, and the renewable energy segment brought in 2.630 billion yuan, growing by 13.69% [3]. - The company's gross margin improved to 15.07% and net margin to 6.70% in the first half of the year, with Q2 showing further improvements in both metrics [4]. - The company has a strong order backlog, with approximately 30.6 billion yuan in hand orders in the energy network sector, including 13.3 billion yuan from marine projects and 15.5 billion yuan from power grid construction, supporting future growth [5]. - The company is making significant strides in AI-related fields, including the development of advanced hollow-core optical fibers and liquid cooling products, as well as high-speed copper cables to meet the demands of data centers and AI computing clusters [6]. Financial Summary - The company adjusted its net profit forecasts for 2025-2027 to 3.7 billion, 4.5 billion, and 5.5 billion yuan respectively, with corresponding PE ratios of 16, 13, and 11 times [7]. - The total share capital is approximately 3,412.95 million shares, with a market capitalization of about 58.634 billion yuan [8]. - The company reported a debt-to-asset ratio of 40.32% and a net asset value per share of 10.42 yuan [8].