Core Points - The establishment of Chongqing's first national emergency communication class support team marks its formal inclusion in the national specialized, standardized, and practical main force sequence for emergency communication support [1] - The team aims to provide national-level communication support for major emergencies such as flood control and geological disaster rescue in the upper reaches of the Yangtze River [1] Group 1 - The Ministry of Industry and Information Technology and 14 other departments have set a goal to achieve significant breakthroughs in key technologies for emergency communication by 2027, enhancing capabilities for extreme scenarios [1] - The national emergency communication class support team is required to quickly restore communication in extreme scenarios of "power outage, network disconnection, and road blockage" [1] - The team, formed by China Mobile Chongqing, consists of over a thousand personnel and a multi-dimensional support system that can restore core area communication within 4 hours and basic communication needs for affected individuals within 10 hours after a disaster [1] Group 2 - The team is equipped with various advanced technologies, including off-road satellite communication vehicles, integrated satellite portable stations, super base stations, and emergency cabins on the ground [1] - Aerial equipment includes 5G-A integrated drone high-altitude base stations and emergency drones, while portable terminals are equipped with "Beidou + Tiantong" satellite terminals, enabling rapid networking within 15 minutes in extreme scenarios [1] - The drone high-altitude base station can reach a height of 200 to 300 meters, covering a radius of approximately 3 kilometers and supporting the internet needs of 2,000 to 3,000 users [2]

Core Insights - The communication services sector experienced a slight increase of 0.11% on November 18, while the Shanghai Composite Index fell by 0.81% and the Shenzhen Component Index decreased by 0.92% [1] Group 1: Stock Performance - The top-performing stocks in the communication services sector included: - Online and Offline (300959) with a closing price of 150.72, up by 2.90% and a trading volume of 77,000 shares, totaling 1.158 billion yuan [1] - Dataport (603881) closed at 35.88, up by 2.25% with a trading volume of 903,000 shares, totaling 3.244 billion yuan [1] - Super Communication (603322) closed at 47.32, up by 2.11% with a trading volume of 120,300 shares, totaling 568 million yuan [1] Group 2: Stock Declines - Notable declines in the communication services sector included: - Zhongjia Bochuang (000889) with a closing price of 4.22, down by 5.80% and a trading volume of 604,800 shares, totaling 258 million yuan [2] - Sanwei Communication (002115) closed at 11.71, down by 4.25% with a trading volume of 1,090,500 shares, totaling 128.3 million yuan [2] - Zhongfutong (300560) closed at 21.82, down by 3.19% with a trading volume of 1,008,900 shares, totaling 232 million yuan [2] Group 3: Capital Flow - The communication services sector saw a net outflow of 606 million yuan from institutional investors, while retail investors contributed a net inflow of 350 million yuan [2][3] - Key stocks with significant capital inflows included: - Online and Offline (300959) with a net inflow of 94.528 million yuan from institutional investors [3] - Aofei Data (300738) with a net inflow of 56.194 million yuan from institutional investors [3] - Bee Assistant (301382) with a net inflow of 50.225 million yuan from institutional investors [3]

Core Viewpoint - China Mobile's Mudanjiang branch has achieved significant recognition in the 8th "Bloom Cup" 5G Application Competition, winning three national-level awards, showcasing its innovation in 5G applications and commitment to social responsibility [1] Group 1: 5G Applications in Agriculture and Tourism - The "Xiangshui Rice Park Quality Safety Traceability System Service Project" focuses on smart agriculture, integrating 5G technology throughout the agricultural product lifecycle, enhancing food safety and production efficiency [2] - The project combines "smart agriculture + cultural tourism experience," allowing visitors to appreciate the beauty of rural landscapes while experiencing the technological empowerment of agriculture [2] Group 2: Healthcare Innovations - The upgrade of the electronic medical record system at Mudanjiang Cardiovascular Hospital utilizes 5G networks to ensure secure data transmission and storage, improving healthcare efficiency and patient experience [3] - The company has won multiple awards in the healthcare category, indicating its leadership in the digital transformation of regional medical services [3] Group 3: Digital Government Initiatives - Mudanjiang Mobile is actively involved in building a digital government model, significantly reducing processing times for business applications, exemplified by the reduction of retail store licensing from three months to nine days [4] - The company has implemented emergency response mechanisms during natural disasters, ensuring communication remains uninterrupted [4] Group 4: Community Services and Innovations - The company has developed various community service initiatives, including providing network support and travel guidance during peak seasons, and launching an "AI Smart Q&A" feature for 24/7 social security and medical insurance inquiries [5] - Future plans include leveraging 5G technology to explore new application scenarios, enhancing cultural tourism, rural revitalization, and healthcare sectors [5]

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [11]. Core Insights - In the 46th week of 2025, the communication sector experienced a decline of 4.70%, ranking 32nd among major industries, while it has risen by 55.59% since the beginning of the year, ranking 2nd [2][4]. - Tower's Q3 performance validates the high demand for silicon photonic modules, with a $300 million investment to expand PIC capacity, expected to triple by the second half of 2026 [2][7]. - Global computing infrastructure continues to expand, with Anthropic announcing a $50 billion investment to build custom data centers in Texas and New York, and Microsoft unveiling its "planetary" AI super factory architecture [6][7]. Summary by Sections Market Performance - The communication sector's performance in the 46th week of 2025 showed a 4.70% decline, while year-to-date, it has increased by 55.59% [2][4]. - Among companies with a market capitalization above 8 billion, the top gainers were Online and Offline (+46.6%), Sanwei Communication (+8.6%), and Cambridge Technology (+6.6%), while the biggest losers were Keda (-14.4%), Guodun Quantum (-14.3%), and Lian Te Technology (-12.0%) [4]. Company Performance - Tower's Q3 revenue reached $396 million, a year-on-year increase of 7%, with net profit at $54 million, up 15% [5]. - The silicon photonic business generated approximately $52 million in revenue in Q3, a 70% year-on-year increase, with an expected annual revenue exceeding $220 million, more than doubling from $105 million in 2024 [5]. - The company plans to invest an additional $300 million to expand PIC wafer capacity, with a total investment of $650 million, and anticipates revenue from the silicon photonic business to exceed $900 million in the future [5]. Investment Recommendations - The report recommends several companies based on their sectors: - Operators: China Mobile, China Telecom, China Unicom - Optical Modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid Cooling: Invec - Hollow Core Fiber: Fenghuo Communication, Hengtong Optic-Electric, Zhongtian Technology - Domestic Computing: Runze Technology, Guanghuan New Network, Aofei Data, Huafeng Technology, Guangxun Technology, ZTE, Unisplendour - AI Applications: Boshi Jie, Heertai, Tuobang Co., Yiyuan Communication, Meige Intelligent, Guanghetong - Satellite Applications: Huace Navigation, Haige Communication, Canqin Technology [7].

Group 1 - The report highlights the sustained demand for computing power, with significant growth expected in the AI infrastructure sector driven by domestic advancements in computing chips and increased capital expenditure from cloud service providers [2][3]. - The domestic AI infrastructure is anticipated to experience rapid growth by 2026, following a slight dip in expectations due to external factors such as the ban on NVIDIA chips [2]. - The report emphasizes the structural alpha opportunities within the industry, particularly in segments like optical modules, liquid cooling, switches, and power supplies, as the demand for AI computing continues to rise [2]. Group 2 - The report indicates that the terminal AI market is on the verge of significant expansion, with policy support and ecosystem development expected to drive growth in 2026 [3]. - Innovations in products, such as Meta's AI glasses, are likely to accelerate the market penetration of terminal AI applications [3]. - The report suggests that the industry is transitioning from a phase of thematic catalysts to one of performance realization, with the emergence of "hit products" expected to further boost the sector [3]. Group 3 - The telecommunications sector is currently experiencing a phase of capital expenditure reduction, business restructuring, and increasing dividend payouts, which positions it favorably for investors [4]. - The report notes that the telecommunications sector has shown resilience, with profit growth outpacing revenue growth, and a stable or increasing dividend yield in a low-interest-rate environment [4]. - Emerging business areas, particularly in AI and satellite communications, are expected to contribute to a second growth curve for telecommunications companies [4]. Group 4 - The North American AI sector has seen a remarkable increase in capital expenditure, with projections indicating that spending could exceed $600 billion by 2026, driven by robust demand for AI services [12][13]. - The report outlines that the AI computing market is characterized by a dual demand for training and inference, with inference demand expected to surpass training demand in the near future [35][36]. - The report highlights the importance of energy management solutions, such as 800 VDC systems, in addressing the rising power consumption associated with AI data centers [69][70].

Core Insights - The State Council has issued the "Implementation Opinions on Accelerating Scene Cultivation and Open Promotion for Large-Scale Application of New Scenes," marking a systematic deployment of scene cultivation at the national level [1] - Recent industry dynamics illustrate a clear path of practice, including the mutual transfer of A-share stakes between China National Petroleum Corporation (CNPC) and China Mobile, and a model exchange event hosted by iFlytek [1][2] - The collaboration between state-owned enterprises (SOEs) and private enterprises is creating a closed-loop ecosystem characterized by capital interlocking, technological collaboration, and scene implementation [2] Scene Supply Side - SOEs are identified as the core carriers and "rich mines" for new scene cultivation, holding significant infrastructure and industry data [2] - SOEs have developed over 800 application scenarios in the "AI + scene" construction, exemplified by the launch of 100 representative application scenarios in the energy and chemical industry alongside the Kunlun model [2] Technical Support Side - Private enterprises like iFlytek provide essential computing power and algorithm support for scene implementation [3] - iFlytek's Spark model is the only general model trained on domestic computing power, enabling efficient construction of industry-specific models [3] - iFlytek has maintained a leading position in public bidding for large models in SOEs, serving over 20 central enterprises [3] Strategic Value of SOE and Private Enterprise Cooperation - The collaboration enhances technological innovation and self-control, reducing reliance on external technologies [4] - It accelerates digital transformation and industrial upgrading, addressing challenges faced by SOEs in digitalization [4] - The partnership optimizes resource allocation and promotes collaborative development across industries, enhancing overall competitiveness [4] - The rapid pace of scene cultivation and opening will lead to diverse applications in areas like "5G+", "AI+", and "Industrial Internet," driving high-quality development in the real economy [4]

Core Insights - The focus of global technology competition has shifted from pure computing power to storage, which is essential for supporting AI applications and large models [2][3] - The explosive growth of AI technology is fundamentally changing the underlying logic of storage demand, with global data expected to exceed 200ZB by 2025 and AI training data growing at an annual rate of 67% [2][3] Storage Industry Transformation - AI's rapid development is leading to a significant increase in storage requirements, with enterprises now needing storage systems that can handle tens to hundreds of PBs [3] - The demand for high-performance storage is surging, with AI training bandwidth requirements entering the "TB-level era," and a projected 300% increase in average storage bandwidth needs by 2025 compared to 2023 [3][8] - Traditional storage architectures are facing challenges, including increased data transport costs and inefficiencies, with GPU utilization rates as low as 40% in some cases [5][9] Challenges in the Storage Sector - The separation of storage and computing architectures is causing significant data transport costs, with energy consumption for data movement accounting for over 50% of total system energy [5] - Cost pressures are evident, as all-flash storage, while necessary for AI performance, remains 2.3 times more expensive than HDDs despite a 40% reduction in unit capacity costs by 2025 [5][9] - The complexity of managing diverse data types in the AI era presents significant governance challenges, characterized by the "4V" attributes: volume, variety, value, and velocity [6] Future Directions in Storage - The storage industry is evolving towards a dual focus on high performance and green transformation, driven by AI demands and sustainability requirements [7][9] - Innovations in high-performance storage are shifting from point optimizations to systemic breakthroughs, with full flash storage becoming a necessity and distributed architectures gaining prominence [8] - Green storage initiatives are becoming essential, with data centers aiming for carbon neutrality and significant increases in the use of renewable energy [9][10] Integration of Storage and Computing - The future of data centers is moving towards a model where storage and computing are integrated, addressing the challenges of architecture and efficiency [12] - The development of a hierarchical heterogeneous storage-computing architecture is anticipated, with solutions aimed at enhancing energy efficiency by up to 300 times [12] - Collaborative storage resource networks are being established, with potential cost reductions of 22% and improved computing utilization rates of 18% through regional cooperation [12][13]

Market Overview - On November 17, the communication services sector rose by 0.04% compared to the previous trading day, with Zhongfutong leading the gains [1] - The Shanghai Composite Index closed at 3972.03, down 0.46%, while the Shenzhen Component Index closed at 13202.0, down 0.11% [1] Stock Performance - Zhongfutong (300560) closed at 22.54, up 20.02% with a trading volume of 503,300 shares and a transaction value of 1.133 billion [1] - Dataport (603881) closed at 35.09, up 5.50% with a trading volume of 869,900 shares and a transaction value of 3.014 billion [1] - Other notable performers include Hengxin Dongfang (300081) up 5.20%, Pingzhi Information (300571) up 5.01%, and Fengzhushou (301382) up 4.55% [1] Fund Flow Analysis - The communication services sector saw a net inflow of 161 million in main funds, while retail funds experienced a net outflow of 12.85 million [2] - Main fund inflows were led by Dataport with 249 million, followed by Zhongfutong with 92.87 million [3] - Retail investors showed significant outflows in several stocks, including Zhongfutong and Hengxin Dongfang, indicating a shift in investor sentiment [3]

Core Insights - The 2025 Global Computing Conference (CGC) hosted the release of the "2025 Annual Global Computing Industry Application Case Compilation (GMVPS)" which serves as an annual benchmark for innovation in the global computing industry [1] - The event featured nearly 60 submitted cases across more than ten industries, highlighting the breadth of innovation in the computing sector [1][8] Group 1: Case Collection and Evaluation - The case collection process, initiated on July 21, received strong support from various communities and attracted numerous submissions from GCC member units and industry partners [8] - The focus areas included intelligent computing, high-performance computing, green computing, and edge computing, covering advanced efficiency, secure computing, and intelligent systems [8] - A committee composed of technical experts, industry leaders, and media representatives conducted multiple rounds of material reviews and evaluations to select benchmark cases in technology innovation and industry application [13] Group 2: Special Recommendations and Recognitions - The newly introduced "Committee Special Recommendation" title emphasizes technological breakthroughs and industry demonstration, with a list of notable cases announced [14] - Selected cases include advanced solutions from companies like China Mobile, Huawei, and Lenovo, showcasing significant contributions to the computing landscape [16][17] Group 3: Ecosystem Development and Future Outlook - The GMVPS case selection activity aims to build bridges for industry innovation, promoting deep integration of computing technology across various sectors [19] - The release of the annual case collection not only showcases outstanding industry practices but also establishes a platform for technical exchange and resource sharing [19] - The alliance plans to continue gathering industry forces to enhance collaborative innovation, focusing on trends like intelligent upgrades and green low-carbon initiatives, thereby driving sustainable growth in the global digital economy [19]

Investment Rating - The report maintains an "Outperform" rating for the communication industry [5][44]. Core Insights - The communication industry is experiencing strong growth driven by advancements in AI infrastructure and silicon photonics, with companies like Tower and AMD showing significant revenue growth projections [1][15][21]. - Tower Semiconductor's Q3 2025 revenue reached $396 million, a 7% year-over-year increase, with expectations for Q4 revenue to be $440 million, driven by a 70% increase in silicon photonics revenue [11][1]. - AMD projects a compound annual growth rate (CAGR) of over 35% for overall revenue and over 60% for its data center business over the next 3-5 years, highlighting the growing demand for AI-related infrastructure [15][21]. - Cisco reported an 8% year-over-year revenue increase in Q1 FY2026, primarily due to strong AI infrastructure orders, with expectations for AI-related revenue to exceed $3 billion in FY2026 [21][22]. Summary by Sections Industry News Tracking - North American optical module and chip companies are expected to see significant growth, with Tower planning to triple its silicon photonics capacity [1][11]. - Baidu's World Conference 2025 unveiled a roadmap for computing infrastructure upgrades and the launch of the Wenxin large model 5.0, showcasing advancements in AI capabilities [26][27]. - The successful launch of 13 low-orbit satellites marks a significant step in accelerating satellite internet development [28]. Market Performance Review - The communication index fell by 4.77% this week, underperforming the Shanghai and Shenzhen 300 index, which decreased by 1.08% [3][36]. - Within the sector, IoT controllers, operators, and satellite internet showed relatively better performance [3][39]. Investment Recommendations - Continued focus on AI computing infrastructure development is advised, with recommendations to consider companies involved in optical devices, communication equipment, and liquid cooling solutions [44]. - The three major telecom operators are highlighted as important assets for long-term investment due to their stable operations and increasing dividend payouts [44]. Key Company Earnings Forecasts and Investment Ratings - Key companies such as China Mobile, Zhongji Xuchuang, and ZTE are rated as "Outperform" with projected earnings per share (EPS) growth and favorable price-to-earnings (PE) ratios [5][43].