Investment Rating - The report maintains a "Buy" rating for multiple companies in the communication sector, including 沪电股份 (002463.SZ), 美格智能 (002881.SZ), 中际旭创 (300308.SZ), 天孚通信 (300394.SZ), and others [1]. Core Insights - The report highlights the broad prospects for domestic computing power chips and the acceleration of AI digital interaction in commercial scenarios, indicating a positive outlook for related industry chain investment opportunities [2][6]. - The reintroduction of the H20 chip is expected to provide more computing power options for AI application companies, alleviating the shortage of high-end chips and accelerating the commercialization of AI applications [3][20]. - The RISC-V summit in 2025 is seen as a pivotal moment for China's chip industry, with significant contributions to the global RISC-V chip shipment volume expected from China [19][20]. Summary by Sections Industry Viewpoints - The communication sector index increased by 7.56%, outperforming the Shanghai and Shenzhen 300 index by 6.47 percentage points [14]. - The report emphasizes the importance of the H20 chip and RISC-V developments in enhancing China's chip autonomy and innovation capabilities [24][32]. Weekly Strategy Insights - The approval of H20 chip exports to China and the launch of the RTX Pro GPU by NVIDIA are significant developments that could enhance the domestic chip market [18][24]. - The AI model Grok 4 has shown substantial improvements in human-like simulation capabilities, indicating a growing trend in AI-driven digital interactions [21][51]. Communication Industry Dynamics - The report notes that the domestic computing power market is expanding rapidly, with the AI chip market expected to reach 141.2 billion yuan in 2024, reflecting a 41.9% year-on-year growth in 2023 [20][36]. - The investment scale of China's intelligent computing center market reached 87.9 billion yuan in 2023, with a projected growth to 288.6 billion yuan by 2028 [50][51].

Investment Rating - The report maintains a "Recommend" rating for the communication industry, expecting the industry index to outperform the benchmark index by more than 5% in the next 3-6 months [36]. Core Insights - The optical module industry has shown unexpected growth in the first half of 2025, with major companies reporting over 50% year-on-year profit increases, driven by the demand for 800G products [22][26]. - NVIDIA's H20 chip is set to re-enter the Chinese market, which is expected to enhance the domestic computing power supply chain and benefit related sectors such as IDC [19][17]. - The communication sector has outperformed the broader market indices, with a 7.56% increase in the past week, and a 17.82% increase year-to-date, significantly surpassing the performance of the CSI 300 index [9][10]. Summary by Sections Industry Overview - The communication industry consists of 123 listed companies with a total market capitalization of approximately 492.49 billion yuan [3]. - The sector's performance has been strong, with a year-to-date increase of 17.82%, outperforming the CSI 300 index by 14.67 percentage points [9]. Market Performance - The communication sector's absolute performance over the last month, six months, and twelve months stands at 8.7%, 18.6%, and 30.5%, respectively [4]. - The sector's PE-TTM is reported at 35.94, compared to 13.39 for the CSI 300 index [9]. Key Companies and Recommendations - Key recommendations include China Mobile, China Telecom, and China Unicom for operators; for optical modules, NewEase, Tianfu Communication, and Zhongji Xuchuang are highlighted [30]. - The report suggests monitoring companies like Aofei Data, Guanghuan New Network, and Runze Technology in the IDC sector due to the anticipated benefits from the H20 chip's market re-entry [19][30]. Optical Module Market - Major optical module suppliers in China have reported significant profit growth, with NewEase's net profit expected to increase by 327.68%-385.47% year-on-year [22]. - The demand for 800G and 1.6T products is driving the market, with expectations of continued growth in the coming quarters [26][24].

Market Overview - The Shanghai Composite Index rose by 0.50% on July 18, with 22 out of 28 sectors experiencing gains, led by non-ferrous metals and basic chemicals, which increased by 2.10% and 1.36% respectively [2] - The media and electronics sectors saw declines of 0.98% and 0.49% respectively, while the telecommunications sector fell by 0.31% [2] Capital Flow Analysis - The main capital outflow from the two markets totaled 22.99 billion yuan, with 10 sectors seeing net inflows. The non-ferrous metals sector led with a net inflow of 3.794 billion yuan, followed by the non-bank financial sector with a net inflow of 0.897 billion yuan and a daily increase of 0.33% [2] - The electronics sector experienced the largest net outflow of 8.341 billion yuan, followed by the computer sector with a net outflow of 4.375 billion yuan. Other sectors with significant outflows included telecommunications, machinery, and automotive [2] Telecommunications Sector Performance - The telecommunications sector declined by 0.31%, with a total net outflow of 2.701 billion yuan. Out of 126 stocks in this sector, 31 rose while 88 fell [3] - Notable stocks with significant net inflows included Dongxin Peace, which saw a net inflow of 182 million yuan, followed by China Mobile and China Telecom with inflows of 144 million yuan and 140 million yuan respectively [3][4] - The sector's stocks with the highest net outflows included Hengbao Co., New Yisheng, and ZTE, with outflows of 716 million yuan, 265 million yuan, and 258 million yuan respectively [5] Key Stocks in Telecommunications Sector - Top gainers in the telecommunications sector included Dongxin Peace with a rise of 2.44% and a turnover rate of 25.65%, and China Telecom with a rise of 0.53% [4] - Major losers included Hengbao Co. with a decline of 7.88% and a turnover rate of 39.74%, and New Yisheng with a decline of 0.64% [5]

Group 1 - The conference highlighted five major trends in artificial intelligence, including accelerated iteration of foundational large models, a shift in focus towards post-training and inference stages, deep collaboration between hardware and software, the rise of intelligent agents and the intelligent agent economy, the promotion of open-source ecosystems, and increasing demands for AI safety governance [1] - Beijing Economic-Technological Development Area is committed to building a comprehensive AI city, with plans to establish a national AI data training base, the largest public computing power platform in the city, and to implement special policies and funding exceeding 1 billion yuan to support major projects in various AI-related fields [1] - By the end of 2025, the development goals include opening 100 landmark application scenarios, gathering 600 core enterprises, and achieving an industry scale target of 80 billion yuan [1] Group 2 - The AI hardware and software testing and verification center was officially launched, aiming to provide key testing and verification capabilities for AI hardware and software, with four core capabilities established [2] - The center has partnered with major companies to create innovation labs and testing facilities to accelerate the innovation and prosperity of intelligent computing technologies [2] - Five major achievements in AI hardware and software collaborative innovation were announced, showcasing significant breakthroughs across the entire technology chain from foundational computing power to framework software [2] Group 3 - The center completed the first batch of testing and evaluation for the adaptation of large models and domestic hardware and software, with several companies successfully passing the evaluation [3] - The conference awarded certificates to institutions that passed the unified benchmark testing, marking a new stage in the standardized and quantifiable development of AI collaborative innovation ecosystems [3] - The AI safety governance initiative was highlighted, with 18 companies disclosing their safety practices, contributing to the establishment of a solid foundation for responsible AI development [3] Group 4 - The vice president of the China Academy of Information and Communications Technology emphasized the urgent need to address challenges in hardware and software collaboration for building an open intelligent computing ecosystem [4] - The AISHPerf 2.0 benchmark system was officially released, featuring upgrades to support multiple inference engines and domestic open-source model loads, addressing various evaluation needs [4] - The academy has initiated a series of collaborative testing and verification efforts based on AISHPerf, focusing on large model adaptation and key collaborative technologies [4]

Group 1 - The 2025 Global Digital Economy Conference in Lhasa focuses on the theme "Digital Gathering in Lhasa, Collaborative Development," attracting representatives from key digital economy enterprises such as China Mobile and China Telecom [1] - The forum features discussions on core topics like technology infrastructure, collaborative architecture design, and application innovation, providing insights and case studies from leading digital companies [2] - The event enhances Lhasa's visibility in the digital economy sector and facilitates multiple investment agreements, showcasing a strong commitment to developing the digital economy [2] Group 2 - The conference elaborates on the "1+6+N" policy framework, a 1.5 billion RMB industry fund, and the construction of billion-level digital application scenarios, reflecting Lhasa's determination to accelerate digital economic growth [2] - Twelve companies, including Tibet Zijin Logistics and China Telecom Tibet Branch, signed cooperation agreements with Lhasa's high-tech zone, demonstrating a pragmatic approach to advancing digital economic development [2] - The forum includes various sub-forums on digital finance, low-altitude economy, and computing power empowerment, along with interactive displays showcasing the latest practices and achievements in Lhasa's digital economy [3]

中央第四指导组围绕整治利用虚拟号码诈骗扰民问题开展专题调研座谈 智通财经7月16日电，据工信微服，7月14日下午，中央第四指导组聚焦"着力整治利用虚拟号码诈骗扰 民问题"专项工作赴中国联通开展下沉调研，并与中国电信、中国移动、中国联通等3家基础电信企业座 谈交流，了解问题整治进展情况、听取有关意见建议、研究下一步工作举措。中央第四指导组组长车俊 强调，虚拟号码诈骗扰民问题整治已取得阶段性成效，但也要清醒认识到此项工作的复杂性、长期性， 必须保持韧劲定力，持续用力、久久为功，推动整治工作取得更大成效。要进一步提高思想认识，把整 改整治工作作为坚定拥护"两个确立"、坚决做到"两个维护"的政治检验，践行以人民为中心的发展思 想，持续转变工作作风、强化党性修养，着力提高政治自觉、思想自觉和行动自觉，推动形成抓作风强 工作、抓工作强作风的良性循环。要进一步抓紧抓细抓实后续工作，坚持标本兼治、综合施策，坚持经 济效益、社会效益相统一，坚持依法遵纪合规推进，特别注重源头治理、科技创新，加强干部职工教育 和行业自律，持续提升综合治理效能。通过学习教育集中整治，确保利用虚拟号码诈骗扰民问题发生率 大幅下降并能长期巩固。要进一步 ...

Core Viewpoint - The collaboration between Shandong Telecom and Shandong Cultural Tourism Group aims to leverage digital technologies to drive the digital transformation and upgrade of the cultural tourism industry in Shandong [3][5]. Group 1: Partnership Details - A joint technology innovation laboratory was established through a signing and unveiling ceremony in Jinan, attended by key leaders from both companies [1][5]. - The partnership will focus on integrating Shandong Telecom's technological capabilities in software development and platform construction with Shandong Cultural Tourism's resources in the cultural and tourism sectors [3][5]. Group 2: Strategic Goals - Shandong Telecom aims to become a "globally leading comprehensive intelligent information service operator" by advancing business ecology, network intelligence, and operational wisdom through new digital technologies such as 5G, cloud computing, and artificial intelligence [3]. - Shandong Cultural Tourism Group is focused on strategic emerging industries, driving industrial upgrades through technological innovation, and enhancing market competitiveness in the cultural tourism sector [3][5]. Group 3: Future Collaboration - The innovation laboratory will operate under a model of "demand co-research, technology sharing, and result co-creation," serving as a hub for driving innovation and incubation [5]. - There will be a focus on developing collaborative mechanisms in areas such as intelligent early warning systems, perimeter security, and emergency command, aiming to translate typical solutions into practical applications across the cultural tourism industry [5].

Core Insights - Heilongjiang Province is making significant strides in digital infrastructure development during the 14th Five-Year Plan period, showcasing a robust digital transformation across urban and rural areas [1][2][3] Group 1: Digital Infrastructure Development - As of April 2025, Heilongjiang Province has established a total of 90,900 5G base stations, achieving full coverage in all towns and administrative villages, as well as key scenic areas [1] - The province has also reached 612,000 10G-PON ports and over 3.517 million gigabit users, with a 100% coverage rate for gigabit platforms in urban and town areas by May 2025 [1] - The opening of the Harbin National Internet Backbone Direct Connection Point in May 2022 has significantly improved the province's internet connectivity, reducing network latency and attracting external enterprises [2] Group 2: Internet of Things and IPv6 Deployment - Heilongjiang Province has built a comprehensive IoT network with 19,265 NB-IoT base stations, achieving full coverage in towns and above, while rural areas are covered as needed [2] - The deployment of IPv6 is progressing steadily, with mobile network IPv6 traffic accounting for 65.54% and fixed network traffic at 27.26% by May 2025, indicating a strong shift towards next-generation internet protocols [2] Group 3: Data Centers and Economic Impact - During the 14th Five-Year Plan, Heilongjiang Province has established 30 data centers, including four national-level green data centers, with the total number of racks exceeding 100,000 [3] - The extensive digital infrastructure is likened to capillaries, continuously injecting vitality into the economic and social development of the province, highlighting the transformative impact of digitalization [3]

Economic Indicators - The US Consumer Price Index (CPI) increased by 0.3% month-on-month in June, with a year-on-year growth of 2.7% before seasonal adjustment [1] - Major US stock indices showed mixed results, with the Nasdaq up by 0.18%, while the Dow Jones and S&P 500 fell by 0.98% and 0.4% respectively [1] - Nvidia's market capitalization increased by $161.8 billion (approximately 1160.5 billion RMB) after a more than 4% rise in its stock price [1] Industry Insights - The World Digital Academy released the AI STR series new standard for AI agent operational safety testing, marking the first global standard in this area [2] - AI agents are expected to significantly enhance user experience by reducing the need for complex app interactions, with IDC predicting that by 2027, AI mobile and PC market shares in China will exceed 50% and 80% respectively [3] - The establishment of Huawei Cloud's Embodied Intelligence Industry Innovation Center in Shenzhen is a strategic move to accelerate the development of embodied intelligent robots [4] - The market for embodied intelligence is projected to exceed 1 trillion RMB by 2026, driven by advancements in AI models and technology [4] - The Central Urban Work Conference emphasized the importance of smart city development as a core driver for economic growth and urban governance modernization [5][6] - The smart city market in China is expected to reach 45.3 trillion RMB by 2025, with a compound annual growth rate (CAGR) of 25.2% from 2020 to 2025 [6] Company Developments - Hengfeng Information announced plans for major share reductions by its controlling shareholder, with a maximum of 493.74 million shares (3% of total shares) to be sold [7] - Jinji Co. plans to reduce its shares by up to 127.4 million (0.2717% of total shares) by its largest shareholder's action [7] - Angli Education intends to reduce its repurchased shares by up to 573.1 million (2% of total shares) [7] - Fangzheng Technology announced a plan to reduce shares by up to 94.51 million (2.27% of total shares) [7] - Lingzhi Software and Tianyuan Co. also announced share reduction plans, with respective maximum reductions of 0.3%, 0.8125%, and 1% of total shares [8]

Core Viewpoint - Huizhou Telecom is committed to driving digital transformation through innovative technologies, focusing on AI and quantum technology to enhance public services and improve operational efficiency in various sectors [1][3][5]. Group 1: Digital Transformation and Innovation - Huizhou Telecom adheres to the "red telecom spirit," emphasizing innovation and technology to support the digital transformation of the economy and society [1][3]. - The company has received numerous accolades, including the "National User Satisfaction Enterprise" and "Advanced Anti-Fraud Unit," reflecting its strong brand and effective management [1]. - Huizhou Telecom is actively implementing the "AI+" strategy, integrating deep intelligent technologies into government services, marking the transition to "Smart Government 3.0" [5][6]. Group 2: AI and Government Services - The company has developed the DeepSeek atomic capability platform, enabling significant advancements in AI applications for government operations, such as intelligent document drafting and citizen inquiry responses [5][10]. - Huizhou Telecom's AI-driven "proactive governance" model enhances decision-making by analyzing public sentiment and optimizing resource allocation [11]. - The integration of AI in the 12345 hotline has improved service efficiency and quality, establishing a comprehensive AI empowerment system [10][11]. Group 3: Security and Safety - Huizhou Telecom prioritizes cybersecurity, employing advanced technologies like quantum communication and AI to create a robust security framework for users [19][20]. - The company has launched quantum communication services, providing secure communication solutions for various sectors, including government and finance [20]. - Huizhou Telecom's anti-fraud initiatives have earned it recognition as an "Advanced Anti-Fraud Unit," reflecting its commitment to protecting citizens' assets [21]. Group 4: Community and Social Responsibility - The company actively participates in rural development initiatives, improving communication infrastructure in villages and contributing to the "Beautiful Countryside" project [24][26]. - Huizhou Telecom engages in public welfare activities, such as anti-fraud campaigns, demonstrating its commitment to social responsibility and community service [28].