Group 1 - The stock price of China Telecom (601728) closed at 7.39 yuan on July 29, 2025, with an increase of 1.23% and a turnover rate of 0.22% [1] - The trading volume was 1.7253 million hands, with a transaction amount of 1.272 billion yuan [1] - The net inflow of main funds today was 126 million yuan, accounting for 9.92% of the transaction amount [1] Group 2 - For the latest quarterly report, China Telecom reported total operating revenue of 134.509 billion yuan, a year-on-year increase of 0.01% [1] - The net profit attributable to shareholders was 8.864 billion yuan, reflecting a year-on-year growth of 3.11% [1] - The company's current ratio is 0.629, quick ratio is 0.617, and debt-to-asset ratio is 45.78% [1] Group 3 - China Telecom has made investments in 88 companies and participated in 5,000 bidding projects [2] - The company holds 53 trademark registrations and 5,000 patent filings [2] - Additionally, China Telecom possesses 72 administrative licenses [2]

Core Insights - The Shanghai government and China Telecom jointly launched the "Smart Cloud Shanghai" urban information service brand at the WAIC 2025 closing ceremony, marking it as the first urban informationization brand in the country [1] - "Smart Cloud Shanghai" focuses on key areas such as governance, industry, and people's livelihoods, aiming to promote the deep integration of artificial intelligence with economic and social development [1] - The initiative supports modern urban governance, optimizes and upgrades industrial structures, expands new scenarios for public services, and aims to create the world's first "fully cloud-based and intelligent" urban service system [1]

Market Performance - The Hang Seng Index closed at 25,562, up 0.68% with a year-to-date increase of 27.43% [1] - The Hang Seng Tech Index closed at 5,664, down 0.24% with a year-to-date increase of 26.77% [1] - The Dow Jones Index closed at 44,837, down 0.14% with a year-to-date increase of 5.39% [1] Currency and Commodity Overview - The RMB Index is at 95.710, down 0.22% over the last month and down 5.14% over the last six months [2] - Brent crude oil is priced at $69.10 per barrel, up 3.40% over the last month but down 5.59% over the last six months [2] - Gold is priced at $3,338.20 per ounce, up 1.04% over the last month and up 20.77% over the last six months [2] Company News - Alibaba has launched its first self-developed AI smart glasses, Quark Glasses, which integrates features from its ecosystem including Alipay [9] - Lenovo has signed a strategic cooperation agreement with China Telecom to explore AI computing and other fields [10] - Audi reported a 24.27% decline in profit for the first half of the year, adjusting its full-year performance guidance downwards [13] - Tesla has signed a $16.5 billion chip supply agreement with Samsung, aimed at producing next-generation AI chips [14] Trade and Economic Data - Hong Kong's exports grew by 11.9% year-on-year last month, marking the 16th consecutive month of growth, although the growth rate has slowed [11] - The Dallas Fed's manufacturing index rose to 0.9 in July, indicating a recovery in factory activity after five months of decline [15] Stock Performance - China Biologic Products Holdings saw a stock price increase of 7.09%, leading the gainers in the Hang Seng Index [17] - BYD's stock price decreased by 1.16%, with a short-selling ratio of 42.43% [19] - The top-performing sectors in the Hong Kong market included biotechnology and pharmaceuticals, while the automotive sector faced declines [20]

Group 1: Market Performance - The communication ETF had an intraday turnover of 16.27%, with a transaction volume of 18.2966 million yuan, indicating active market trading [3] - Over the past week, the communication ETF's average daily transaction volume was 15.4895 million yuan [3] - The communication ETF's net value increased by 45.57% over the past year [3] Group 2: Fund Growth and Returns - The communication ETF saw a growth of 1.0009 million yuan in scale over the past week, ranking first among comparable funds [3] - Since its inception, the communication ETF recorded a highest monthly return of 24.48%, with the longest consecutive monthly gains being three months and the longest gain percentage being 23.48% [3] - The average return during the rising months was 6.09% [3] Group 3: Industry Outlook - The communication industry in China is experiencing stable operations, with growth in telecom business volume and orderly progress in new infrastructure construction [4] - By 2025, the communication sector is expected to benefit from technological iterations and policy dividends, with new growth drivers from AI, quantum communication, and low-altitude economy [4] - The top ten weighted stocks in the national communication index accounted for 59.17% of the total index as of June 30, 2025 [4] Group 4: Key Stocks Performance - The top weighted stocks include Zhongji Xuchuang (9.34%), China Telecom (8.56%), and Xinyi Sheng (8.25%), among others [6] - Notable stock performances include Zhongji Xuchuang with a rise of 9.09% and Tianfu Communication with a rise of 12.64% [6] - Investors can access AI-driven optical communication investment opportunities through the communication ETF linked fund (019072) [6]

Core Viewpoint - The article highlights the advancements and ambitions of TeleAI, a subsidiary of China Telecom, in the field of embodied intelligence, showcasing their comprehensive self-research capabilities in hardware, software, and data integration, which positions them uniquely in the industry [10][12][61]. Group 1: Technological Advancements - The "Kungfu boy" robot has been upgraded to perform martial arts demonstrations with minute-level precision, showcasing significant advancements in robotics technology [2][36]. - TeleAI's robots utilize a self-developed multi-motor collaborative drive control embedded hardware system, allowing for precise movement and stability [21][23]. - The remote operation system, TeleHumos, enhances the robot's capabilities in hazardous environments, utilizing 5G technology for kilometer-level operational range [9][26]. Group 2: Comprehensive Research and Development - TeleAI is committed to full-stack self-research, integrating hardware and software development to create a competitive edge in the embodied intelligence sector [14][17]. - The company has developed a unified multi-gait hybrid expert model, enabling robots to adapt their movements based on environmental conditions [34][35]. - TeleAI's approach to data generation involves creating realistic virtual environments to train robots, addressing the challenges of data scarcity in the robotics industry [43][50]. Group 3: Collaborative Intelligence - TeleAI emphasizes the importance of collaboration among robots, enabling them to share learning experiences and adapt to new situations collectively [57][58]. - The integration of AI Flow allows for seamless communication between edge devices and cloud systems, enhancing real-time decision-making capabilities [54][55]. - This collaborative approach positions TeleAI's robots as part of a larger intelligent network, rather than isolated units, which is crucial for complex operational scenarios [51][53]. Group 4: Industry Implications - TeleAI's advancements reflect a broader trend in the embodied intelligence industry, moving towards ecosystem-level collaborative innovation rather than isolated technological breakthroughs [60][61]. - The company's focus on self-research and development is seen as a strategic advantage for China's position in the global embodied intelligence competition [63][64].

Investment Rating - The communication sector maintains a "Buy" rating for key stocks such as Tianfu Communication, Ruijie Network, China Mobile, and China Telecom, while China Unicom is rated as "Overweight" [3][5][61]. Core Insights - In Q2 2025, the communication sector's fund holdings increased to 3.61%, up by 1.31 percentage points, indicating a shift from underweight to overweight status [2][15]. - The communication sector's TTM P/E ratio as of July 24, 2025, is 35.71x, which is at the 37.5% historical percentile since early 2011 [2][15]. - Key areas of focus include the domestic computing power and its supporting industrial chain, particularly in optical modules and related technologies [1][14]. Summary by Sections Market Performance - The communication index fell by 0.77% last week, while the Shanghai Composite Index rose by 1.67% and the Shenzhen Component Index increased by 2.33% [1][14]. Fund Holdings - Q2 2025 saw a rise in the communication sector's fund holdings, with a notable increase in the allocation towards optical modules and military communications, while reducing exposure to data centers and wireless equipment [2][15]. Recommended Stocks - Key recommended stocks include: - Tianfu Communication (300394 CH) with a target price of 119.12 and a "Buy" rating - Ruijie Network (301165 CH) with a target price of 88.70 and a "Buy" rating - China Mobile (600941 CH) with a target price of 126.40 and a "Buy" rating - China Telecom (601728 CH) with a target price of 9.13 and a "Buy" rating - China Unicom (600050 CH) with a target price of 7.62 and an "Overweight" rating [5][61]. Key Stock Performance - The top five stocks with increased fund holdings in Q2 2025 include: - Xinyi Technology (300502 SZ) with a total market value increase of 191.65 billion - Zhongji Xuchuang (300308 SZ) with an increase of 182.70 billion - Tianfu Communication (300394 SZ) with an increase of 29.69 billion - Yuanjie Technology (688498 SH) with an increase of 16.90 billion - Haige Communication (002465 SZ) with an increase of 11.01 billion [25][26].

Investment Rating - The report maintains an "Accumulate" rating for the industry, specifically in the power equipment sector [5]. Core Insights - The intelligent computing center industry is experiencing rapid expansion driven by a combination of policy support, local government initiatives, and surging market demand. The investment scale in China's intelligent computing center market reached 87.9 billion yuan in 2023, representing a year-on-year growth of over 90%. It is projected to reach 288.6 billion yuan by 2028 [1][20]. - Local governments and basic telecom operators are the primary participants in the construction of intelligent computing centers, accounting for over 50% of the projects in operation, under construction, or planned as of August 2024. Internet and cloud service providers contribute approximately 17.7% of the projects [20][21]. Summary by Sections 1. Demand Driven Growth in AIDC - The investment scale of intelligent computing centers is significantly increasing due to the resonance of policy support and the demand for large models. The rapid growth in data volume driven by large model applications is pushing the intelligent computing center into an expansion phase [16][17]. - Major telecom operators and internet companies are ramping up their investments in computing power. For instance, China Mobile plans to invest 37.3 billion yuan in computing power, which will constitute 25% of its capital expenditure in 2025 [2][27]. 2. Evolution of Data Center Power Supply Architecture - The current power supply systems in data centers primarily utilize UPS, but there is a gradual shift towards HVDC and Panama power systems. HVDC systems offer significant advantages in reliability, efficiency, and economic viability compared to traditional UPS systems [3][26]. - The Panama power system demonstrates clear advantages in investment costs and operational efficiency, achieving a conversion efficiency of 97% [3][26]. 3. Future Trends in Power Supply Architecture - The transition towards medium and high voltage power supply systems is becoming a trend, with a focus on high-density and energy-efficient solutions in the AIDC era [3][38]. - The report suggests that companies like Kehua Data and Kstar, as well as leaders in HVDC and Panama power systems like Zhongheng Electric, are well-positioned to benefit from the increasing capital expenditures by internet companies [4][38].

Core Viewpoint - The article discusses the innovative technology "AI Flow" developed by China Telecom's Artificial Intelligence Research Institute, which integrates information and communication technologies to enhance data transmission efficiency, particularly in challenging environments like the ocean [4][35]. Group 1: AI Flow Technology - AI Flow enables smooth video calls at sea by significantly reducing the data transmission required, achieving a reduction of one to two orders of magnitude in bandwidth usage [19][4]. - The technology allows for the transmission of model-extracted features instead of raw data, transforming the communication process from "pixel transportation" to "meaning understanding and artistic reconstruction" [18][19]. Group 2: The Three Laws of AI Flow - The first principle, "Law of Information Capacity" (信容律), reveals the conversion and measurement between different forms of information, allowing for a unified metric to measure communication and computation [15][8]. - The second principle, "Law of Familial Model" (同源律), describes a family of models where smaller models inherit knowledge from larger models, enabling efficient collaboration and task execution [22][25]. - The third principle, "Law of Multi-model Collaboration" (集成律), emphasizes the importance of connecting multiple intelligent agents to achieve a greater collective intelligence, allowing for a "1+1>2" effect through diverse and complementary capabilities [30][31]. Group 3: Implications and Future Outlook - The integration of these principles signifies a new era in communication technology, likened to installing a new "nervous system" for the digital world, which has profound implications for efficiency and convenience in an intelligent society [34][35]. - The advancements made by China Telecom in AI and communication technology position the company at a significant historical opportunity, marking a pivotal moment in the convergence of AI and communication [35][36].

Group 1 - Lenovo and China Telecom signed a strategic cooperation agreement during the 2025 China Telecom Artificial Intelligence Ecosystem Forum [1] - The collaboration will focus on areas such as basic communication, comprehensive information services, AI computing, international business, and joint expansion of government and enterprise clients [1]

Group 1 - The core viewpoint of the articles highlights the rapid advancement and adoption of AI agents across various industries, with 2025 being seen as a pivotal year for their emergence, and an expectation of over 1 billion AI agents by 2026 [1] - AI agents are being utilized to address common challenges in industries such as textiles, where they enhance the accuracy and speed of fabric inspection, thereby reducing costs and improving efficiency [1] - China Telecom has developed over 80 industry-specific large models and more than 20 AI agent applications, serving over 20,000 industry clients, showcasing the extensive application of AI technology in sectors like industrial, emergency, and education [1] Group 2 - In the office sector, Mido Technology Co., Ltd. launched V Assistant 2.0, a multi-agent collaborative intelligent body for comprehensive public opinion analysis, demonstrating the versatility of AI agents in various applications [2] - AI agents are increasingly being integrated into business processes, particularly in clearly defined task environments, allowing them to take on more routine execution tasks and improve operational efficiency [2] - An example from Belle Fashion Group illustrates the successful implementation of over 800 AI applications across various business nodes, significantly enhancing information connectivity and process automation [3]