Core Viewpoint - The report from Zhongyuan Securities indicates that a series of AI industry catalytic events will occur in 2026, strengthening the leading position of top optical module manufacturers due to their technological, customer, and scale advantages. The current valuation of the communication industry index is below the ten-year average, and the industry maintains a "stronger than the market" investment rating based on performance growth expectations and valuation levels [1][2]. Summary by Sections Review of 2025 - In early 2025, the DeepSeek large model boosted market sentiment, and the three major operators completed the deployment of DeepSeek computing power private networks, enhancing their cloud service capabilities. Domestic cloud manufacturers provided positive capital expenditure guidance, leading to an increase in industry valuations. However, from February to April, the industry index experienced significant fluctuations due to concerns over U.S. tariff policies and future demand for optical modules. By mid-April, the easing of tariff policies and validation of AI computing power demand led to a gradual recovery in the industry index and valuations. In late July, North American cloud manufacturers raised their capital expenditure guidance, further catalyzing the industry. Since September, leading manufacturers faced short-term performance fatigue due to product iterations and customer structure adjustments, raising concerns about unclear downstream business models [2]. Outlook for 2026 - A series of AI industry catalytic events are expected, including the mass production of NVIDIA's next-generation Rubin GPU, the release of Google's new large model Gemini, and clear capital expenditure guidance from cloud manufacturers. AI smartphones equipped with large models are anticipated to become personalized smart assistants, potentially driving the next wave of smartphone upgrades. The development of key 6G technologies by telecom operators is expected to accelerate revenue growth from AI computing power. The report is optimistic about the high industry prosperity and strong growth potential of optical modules, optical devices, optical chips, and the increasing penetration of AI smartphones, as well as the stable operations of quality dividend assets in telecom operators [3][4]. Capital Expenditure Outlook for Leading Cloud Manufacturers - The demand for 800G is increasing, and the industry is transitioning from 800G to 1.6T technology. Leading optical module manufacturers are expected to further highlight their advantages due to technological leadership, stable customer relationships, and scalable delivery capabilities. The development of AI is driving the construction of large data centers, benefiting optical device manufacturers. The long R&D and expansion cycles for optical chips create high barriers in technology, talent, customer validation, and capital, leading to a persistent supply-demand gap for certain optical chips. The increasing demand for domestic controllable solutions is expected to translate into performance for domestic computing power. Recommended companies to watch include: NewEase, Huagong Technology, Guangxun Technology, Yuanjie Technology, Shijia Photon, and Taicheng Light [4]. AI Smartphones and Market Trends - Generative AI smartphones are set to provide users with new interactive experiences, multimodal content generation capabilities, personalized services, and innovative application ecosystems. The continuous improvement of edge AI computing power and large model capabilities is expected to further increase the market penetration of AI smartphones. Innovations and upgrades in AI smartphones are likely to lead to higher average selling prices and improved profit margins. The growth in edge AI shipments will drive sustained growth in core product lines of consumer electronics components [5]. Telecom Operators' Performance - The three major telecom operators are considered quality dividend assets with high dividend yield potential, offering cash dividends twice a year. The quality of traditional business revenue is improving, and a decrease in capital expenditure is expected to lower future depreciation and amortization costs, maintaining stable operations. Additionally, telecom operators are likely to leverage their advantages in data centers, big data, and network infrastructure to reconstruct business models with the help of AI. Investment recommendations include focusing on the optical module, optical device, and optical chip sectors, as well as AI smartphone and telecom operator sectors [6].

Core Viewpoint - Beijing Zhizhen Technology Co., Ltd. has responded to the Shenzhen Stock Exchange's inquiries regarding customer concentration, outsourced services, and gross margin fluctuations, revealing a significant reliance on its largest customer, China Mobile, which is consistent with industry norms [1][2]. Customer Concentration - The revenue contribution from the top five customers of Zhizhen Technology was 89.34%, 90.73%, 89.92%, and 86.70% during the reporting period, with China Mobile accounting for 78.24%, 83.04%, 80.01%, and 60.49% respectively, indicating a notably high customer concentration compared to industry averages [2][3]. - The high customer concentration is attributed to the oligopolistic structure of the telecommunications industry in China, dominated by China Mobile, China Telecom, and China Unicom, with comparable companies like AsiaInfo Technology also exhibiting similar customer concentration [2]. Outsourced Services - The proportion of outsourced services exceeded 90%, primarily for auxiliary tasks, with amounts of 167.73 million, 172.64 million, 114.27 million, and 75.31 million yuan, representing 92.84%, 95.98%, 93.09%, and 94.84% of total procurement [3]. - The company clarified that outsourced services mainly include low-technical tasks such as software testing and operational support, while core business functions remain handled by in-house teams, indicating no core business outsourcing [3]. Gross Margin Fluctuations - The overall gross margin showed a fluctuating upward trend, recorded at 54.69%, 62.93%, 62.84%, and 55.83%, driven by an increase in high-margin software development business, which achieved a gross margin of 74.36% in 2023, up by 4.73 percentage points from 2022 [4]. - Research and development (R&D) expense ratios from 2022 to 2024 were 29.52%, 34.72%, and 34.01%, which are higher than those of peers like Si Tech and Baoland, indicating a strong commitment to R&D [4]. Performance Volatility - The company's performance has shown volatility post-listing, with a net profit of -48.74 million yuan for the first nine months of 2025, primarily due to cost-cutting policies from telecom operators [5]. - The company is addressing these challenges through a dual-drive strategy, focusing on deepening its market presence with telecom operators and expanding into new business areas such as computing networks and satellite internet [5]. Fundraising Projects - The company plans to raise 661.89 million yuan for projects including OSS product R&D and intelligent scheduling systems, with a warning that these projects may further increase customer concentration as the primary target customers remain telecom operators [6][7]. - To mitigate this risk, the company aims to innovate and expand its customer base beyond telecom operators, having made progress in satellite internet and heterogeneous computing scheduling [7].

Core Insights - The micro-short drama "Kuo Shao Returns to Hometown" focuses on the emotional core of "brokenness and reconstruction," depicting the transformation of a returnee youth, Bai Weite, from a wealthy individual to a non-material cultural heritage inheritor through his engagement with Shaanxi folk songs and other intangible cultural heritages [3][5] Group 1: Cultural Significance - Shaanxi folk songs are described as a vital part of the cultural heritage of the Yellow River Plateau and a national-level intangible cultural heritage [5] - The drama innovatively transforms this ancient intangible cultural heritage into a modern micro-short drama format, aligning with the Ministry of Culture and Tourism's emphasis on systematic protection of intangible cultural heritage [5][9] Group 2: Production and Cast - The production involves notable figures including new-generation actors Xuan Hao and musician Han Xiaojiu, marking Han's debut in micro-short dramas [7] - The cast features a "star-studded" lineup of Shaanxi folk singers, with 83-year-old Bai Mingli serving as the artistic director and prominent folk song inheritor Luo Shengjun making a special appearance [7] Group 3: Release and Impact - "Kuo Shao Returns to Hometown" is set to premiere in early 2026 on platforms like Migu, aiming to create a dual dissemination effect of "drama + music" and enhance the cultural influence of tourism and intangible heritage [9] - The drama seeks to convey the value of "perseverance" in intangible heritage transmission, promoting a dynamic and engaging representation of cultural heritage rather than a static display [9]

Investment Rating - The report maintains a "Buy" rating for several key companies in the telecommunications and AI computing chain, including ZTE Corporation, NewEase, Ruijie Networks, Zhongji Xuchuang, China Telecom, Haige Communication, China Mobile, and Shanghai Hantong [9][41]. Core Insights - The report highlights the ongoing concerns regarding the sustainability of the AI "bubble" and the effectiveness of Scaling Law, while expressing optimism about the performance of Gemini 3 and Banana Pro, which have exceeded initial expectations [2][3]. - The AI computing chain is expected to continue its upward trend, with a focus on Google's core components such as optical modules and liquid cooling systems [2][3]. - The report emphasizes the generational leap in capabilities of Gemini 3, which has achieved significant benchmarks in reasoning and multimodal tasks, thereby shortening the time from investment to revenue [20][14]. Summary by Sections Market Overview - The telecommunications index fell by 2.51% last week, while the Shanghai Composite Index and Shenzhen Component Index dropped by 3.90% and 5.13%, respectively [2][13]. - Concerns about the overseas AI "bubble" are prevalent, particularly regarding the effectiveness of Scaling Law and the sustainability of ROI [2][3]. Key Companies and Dynamics - The report recommends several companies within the AI computing chain, including: - ZTE Corporation (Buy, target price: 64.34) [41] - NewEase (Buy, target price: 476.71) [41] - Ruijie Networks (Buy, target price: 102.51) [41] - Zhongji Xuchuang (Buy, target price: 626.68) [41] - China Telecom (Buy, target price: 9.11) [41] - Haige Communication (Buy, target price: 13.70) [41] - China Mobile (Buy, target price: 126.20) [41] - Shanghai Hantong (Buy, target price: 28.28) [41] - China Unicom (Hold, target price: 7.56) [41] AI Computing Chain Insights - The report notes that the performance of Gemini 3 and Nano Banana Pro has significantly advanced the capabilities in reasoning and multimodal tasks, indicating a strong integration into the AI ecosystem [20][14]. - The demand for AI computing resources is expected to grow, driven by the increasing need for reasoning capabilities and the expansion of cloud token scales [20][14]. Financial Performance - ZTE Corporation reported a revenue of 100.52 billion yuan for the first nine months of 2025, a year-on-year increase of 12%, but a net profit decline of 33% [42]. - NewEase's revenue for the first three quarters of 2025 reached 16.5 billion yuan, a year-on-year increase of 222%, with a net profit increase of 284% [44]. - Ruijie Networks reported a revenue of 10.68 billion yuan for the first nine months of 2025, a year-on-year increase of 28%, with a net profit increase of 65% [46].

Core Viewpoint - The article discusses the release of the evaluation index system for world-class enterprises in 16 industries by state-owned enterprises, highlighting the progress and assessment of central enterprises in building world-class standards [1]. Group 1: Evaluation Index System - The first batch of 11 industry evaluation index systems was released in November 2024, followed by a second batch of 5 in November 2025, covering 16 industries including power grid, oil and gas exploration, and telecommunications [1]. - The evaluation index system aims to assess the construction of world-class enterprises based on data from the year 2024 [1]. Group 2: Assessment Results - Among the 45 central enterprises evaluated, 13, including China National Petroleum, China Petroleum & Chemical, and State Grid, ranked in the top tier of their respective industries [1]. - The overall results indicate that central enterprises are making solid progress in building world-class standards [1]. Group 3: Key Evaluation Metrics - The evaluation metrics include various dimensions such as competitiveness, innovation, control, influence, and risk management, with specific indicators for each dimension [2][4][5]. - Key indicators include total revenue, total assets, profit margins, and R&D investment intensity, which are essential for assessing the performance and competitiveness of enterprises [2][3][4][5].

Core Insights - The report maintains a "stronger than market" investment rating for the communication industry, highlighting its growth potential and favorable valuation levels [1][5][12] - The communication industry index has shown significant performance, ranking second among 30 major industry indices with a 60.87% increase as of November 20, 2025 [12][14] - The report emphasizes the optimistic outlook for AI-related developments, particularly in AI computing and cloud services, which are expected to drive industry growth [4][5][45] Market Review and Industry Performance - In the first three quarters of 2025, the communication industry achieved a total revenue of CNY 19,753.67 billion, representing a year-on-year growth of 2.30%, while net profit reached CNY 1,886.40 billion, up 6.95% [18] - The overall gross margin for the communication industry was 28.45%, with a net margin of 10.19% for the first three quarters of 2025, indicating stable profitability [19] - The telecommunications operators segment reported a revenue of CNY 14,819.21 billion, growing by 0.57%, and a net profit of CNY 1,548.98 billion, increasing by 4.30% [35] Segment Performance - The optical communication segment (including optical modules, devices, and chips) saw a revenue of CNY 795.38 billion, a year-on-year increase of 56.14%, with net profit soaring by 116.86% [41] - The telecommunications equipment segment recorded a revenue of CNY 1,390.0 billion, growing by 11.2%, while the consumer electronics components segment also grew by 11.1% [21] - The cable segment achieved a revenue of CNY 464.54 billion, reflecting a growth of 6.99%, driven by increasing demand across multiple applications [46] Investment Recommendations - The report suggests focusing on companies within the optical module/device/chip sector, such as NewEase, Huagong Technology, and Guangxun Technology, due to their strong growth prospects [5][41] - For AI mobile phones, companies like Xunwei Communication and ZTE are highlighted as key players to watch [5][41] - The telecommunications operators, including China Mobile, China Telecom, and China Unicom, are recommended for their stable operations and high dividend yields [5][41]

破局攻坚，扛起自主创新时代使命。3G时代，为打破欧美FDD技术垄断，我国超前预判时分双工（TDD）在频谱宽带化、灵活化等方面的优势，将其确立 为产业图强的战略切入点。但TDD组网面临重大难题，全球都不看好TDD发展，王晓云带领中国移动团队勇担国家使命，扛起TDD组网创新大旗，携手产 业链各方实现全方位突破。标准层面，补齐并完善首个TDD标准；组网层面，提出"三不三新三融合"等技术方案；产业层面，推动产业初步构建起我国移动 通信端到端产业链，推动我国自主技术首次实现全球商用部署，掀开中国通信事业新篇章。 跨越赶超，紧抓机遇实现历史转折。随着移动互联网兴起，4G技术成为数字经济核心底座，"新一代宽带无线移动通信"被世界各国视作科技竞争的制高点 之一。我国紧抓全球4G发展机遇，建立产学研深度融合创新体系，突破核心技术，主导国际标准与产业发展，实现移动通信历史性转折。这一进程中，王 晓云继续带领团队通过自主创新做大做强TDD网，特别是提出多域协同TDD组网架构与机制，攻克了TDD同频组网中的广域高干扰难题等，最终推动TD- LTE成为4G国际主流标准。中国移动联合产业界克服技术、产业、组网、测试、组织机制五大难题，首 ...

Core Viewpoint - The International Telecommunication Union (ITU) has officially released an international standard for interactive multimedia communication in the 5G/6G era, led by China Mobile, marking it as the first global standard in the field of visual internet [1] Group 1 - The standard focuses on interactive multimedia communication for the 5G/6G era [1] - China Mobile played a leading role in the development of this international standard [1] - This standard is significant for the advancement of the visual internet sector [1]

Core Insights - The article discusses the significant advancements in China's telecommunications industry, particularly the implementation of policies aimed at reducing costs and increasing internet speeds for users [1][2][3]. Group 1: Policy Implementation - As of July 1, 2023, the three major telecom operators in China have eliminated domestic mobile data "roaming" fees, allowing users to enjoy nationwide data without additional charges [2][3]. - The average mobile data tariff has decreased by 46.2% compared to the end of 2017, reflecting the government's push for lower costs in the telecommunications sector [1][2]. - By the end of June 2023, 53.4% of users had internet speeds of 100 Mbps or higher, an increase of 13.5 percentage points since the beginning of the year [1]. Group 2: User Experience and Feedback - The effectiveness of the cost reduction measures will ultimately be assessed through user bills, which will provide a direct indication of the benefits experienced by consumers [3]. - The Ministry of Industry and Information Technology (MIIT) is closely monitoring user feedback to ensure that the implementation of the new policies meets consumer expectations and addresses any complaints [3]. Group 3: Future Developments - The cancellation of "roaming" fees and other cost-reduction measures are seen as preparatory steps for the upcoming 5G era, which is expected to significantly enhance network speeds and capacity [5]. - The commercial rollout of 5G is anticipated to begin in mid-2019, with expectations of increased data usage and the continuation of data speed limits due to finite network resources [5].

Core Viewpoint - The launch of commercial trials for satellite IoT in China marks a significant step towards enhancing the satellite communication market, stimulating industry growth, and supporting emerging sectors like commercial space and low-altitude economy [1][2][3] Industry Summary - The Ministry of Industry and Information Technology announced the start of a two-year commercial trial for satellite IoT, aimed at enriching market supply and establishing a regulatory framework [1] - The satellite IoT business connects various IoT devices through satellite communication, providing low-speed data services for a wide range of applications, including agriculture and emergency communications [1][2] - The satellite communication market in China is projected to exceed 80 billion yuan in 2023, with an expected annual growth rate of approximately 15% from 2024 to 2029, potentially reaching over 200 billion yuan by 2029 [2] - The commercial trial is expected to create significant demand for satellite launches, driving growth in satellite manufacturing and rocket launch industries [1][3] Company Developments - China Telecom has made advancements in satellite internet technology, enabling mobile devices to connect directly to satellites, with coverage extending to 25 million mobile terminals [4] - China Mobile has received a license to operate satellite mobile communication services, enhancing applications in emergency communication and remote area connectivity [5] - China Unicom successfully launched four low-orbit satellites, including the first domestic satellite with 3GPP narrowband IoT capabilities, marking a significant step in low-orbit satellite IoT development [5]