Core Points - Jiangsu Province signed a strategic cooperation agreement with China Telecom on November 17, emphasizing the importance of digital economy development and collaboration in new infrastructure and emerging industries [1] Group 1: Strategic Cooperation - The agreement aims to deepen cooperation in new infrastructure construction, emerging industries, and social governance [1] - Jiangsu's leadership expressed gratitude for China Telecom's support in the province's development [1] Group 2: Digital Economy Development - Jiangsu is focusing on digitalization, networking, and intelligence to enhance its economic growth [1] - China Telecom plans to leverage its strengths to implement the "Smart Cloud Jiangsu" initiative, collaborating closely with research institutions and industry partners [1]

Core Viewpoint - China Telecom has successfully completed a transmission experiment of over 100 kilometers using hollow-core optical fibers, setting a new record in the field [1] Group 1: Technological Breakthrough - The joint transmission of quantum and classical signals is a key bottleneck for the large-scale deployment of quantum communication [1] - The research team proposed an innovative spectrum collaborative allocation mechanism, achieving efficient and stable joint transmission of quantum and classical signals, addressing the interference issue in traditional solid-core fibers [1] Group 2: Industrial Implications - The industrialization prospects of this technological breakthrough are widely regarded as promising, injecting innovative momentum into multiple fields [1] - In network construction, this technology can significantly reduce the integration deployment costs of quantum communication with existing classical communication networks, accelerating the large-scale implementation of quantum communication and promoting the rapid development of related industries [1] Group 3: Recent Achievements - China Telecom has been continuously focusing on quantum-related innovative technologies, recently achieving new results in quantum computing [1] - The superconducting quantum computer "Tianyan-287," equipped with the same chip as "Zuchongzhi No. 3," has officially started operation, demonstrating "quantum superiority" by processing specific problems 450 million times faster than the fastest supercomputer currently available [1]

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 - China Telecom has successfully completed the world's first transmission experiment using hollow-core optical fibers over a distance exceeding 100 kilometers, marking a significant breakthrough in quantum-classical co-fiber transmission technology [1] Group 1: Technological Breakthrough - The experiment represents a milestone in the field of quantum-classical co-fiber transmission, addressing a critical bottleneck for the large-scale deployment of quantum communication [1] - The research team introduced innovative mechanisms such as spectrum collaborative allocation and multi-source crosstalk suppression strategies, enabling efficient and stable co-fiber transmission of quantum and classical signals [1] Group 2: Industry Implications - The successful transmission resolves the industry challenge of interference between quantum and classical signals in traditional solid-core fibers, which complicates the balance between security and capacity [1] - The new system offers comprehensive advantages including low noise, high security, large capacity, and low complexity, paving the way for the practical application of this technology [1]

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 Viewpoint - The incident highlights the effectiveness of the upgraded security system in a residential community, showcasing the capabilities of the AI Vision Network platform developed by China Telecom in enhancing safety and security measures [1][3]. Group 1: Incident Overview - A theft occurred in the underground parking garage of a residential community in Meishan, Sichuan Province, where an intruder broke into a vehicle and stole cash and valuables [1]. - The incident was recorded by the AI Vision Network, which played a crucial role in identifying and apprehending the suspect [1]. Group 2: Security System Upgrade - The residential community recently upgraded its security system, integrating it with the AI Vision Network platform, which allowed for clear capture of the suspect's features and movements [3]. - The AI Vision Network platform includes advanced features such as area intrusion detection and facial behavior analysis, enabling intelligent monitoring of designated areas [3]. Group 3: Broader Application of AI Vision Network - The AI Vision Network platform is not limited to smart communities; it has expanded its application across various industries, integrating functions like AI protection, intelligent broadcasting, behavior analysis, vehicle recognition, and fire warning systems [3]. - This platform aims to meet diverse needs in production, living, and governance, demonstrating its versatility and adaptability [3].

Group 1 - The core viewpoint of the news highlights the trading performance and financial metrics of China Telecom, indicating a slight decline in stock price and notable trading activity on November 14 [1] - On November 14, China Telecom's stock price fell by 0.29%, with a trading volume of 453 million yuan, and a net financing buy of -6.43 million yuan [1] - As of November 14, the total margin balance for China Telecom was 881 million yuan, with a financing balance of 879 million yuan, representing 0.17% of the circulating market value, which is above the 80th percentile of the past year [1] Group 2 - China Telecom, established on September 10, 2002, primarily engages in telecommunications and related services, with a revenue composition of 39.56% from mobile communication services, 27.78% from industrial digital services, and 23.80% from fixed-line and smart home services [2] - For the period from January to September 2025, China Telecom reported a revenue of 394.27 billion yuan, reflecting a year-on-year growth of 0.59%, and a net profit attributable to shareholders of 30.77 billion yuan, up 5.03% year-on-year [2] - As of September 30, 2025, the number of shareholders for China Telecom increased to 273,700, marking a 22.83% rise compared to the previous period [2] Group 3 - Since its A-share listing, China Telecom has distributed a total of 95.19 billion yuan in dividends, with 68.65 billion yuan distributed over the past three years [3] - As of September 30, 2025, Hong Kong Central Clearing Limited has exited the list of the top ten circulating shareholders of China Telecom [3]

Investment Rating - The report maintains a "Recommended" investment rating for the industry [5]. Core Insights - The gap between domestic and overseas large models in AI is rapidly narrowing, with domestic AI ecosystems represented by Tencent and Alibaba showing significant development. This suggests a potential turning point for accelerated growth in domestic AI [3][22]. - The report emphasizes the importance of focusing on core targets in domestic computing power and AI agents, highlighting key companies in cloud computing, chip design, and AI applications [3][22]. Summary by Sections Market Review - During the week of November 10-14, the CSI 300 index fell by 1.08%, the SME index decreased by 1.71%, and the ChiNext index dropped by 3.01%. The computer sector (CITIC) saw a decline of 3.72% [30]. Industry News - AMD's CEO predicts that the AI data center market will exceed $1 trillion by 2030, growing from approximately $200 billion currently, with a compound annual growth rate (CAGR) of over 40% [23]. - The Ministry of Industry and Information Technology has issued a notice to accelerate the construction of pilot platforms in the manufacturing sector, aiming to enhance innovation and technology transfer [24]. Company News - Lingzhi Software plans to acquire 100% of Kaimiride (Suzhou) Information Technology Co., Ltd. through a share issuance and cash payment, with a share price set at 15.31 yuan [27]. - Zhengyuan Wisdom's board approved a share repurchase plan, intending to reduce up to 2,842,000 shares within six months [29]. Weekly Insights - Domestic large models like MiniMax and DeepSeek are now among the top global models, with MiniMax M2 achieving a daily token usage surpassing 50 billion, indicating strong market acceptance [9][12]. - The report highlights the competitive landscape in AI, with Tencent and Alibaba intensifying their efforts in AI applications, suggesting an imminent phase of heightened competition in the domestic AI market [20][22].

这场热烈的市场反响，标志着中国电信陕西公司在推动人工智能技术普惠化、场景化方面迈出关键一 步，一批批被预定的AI悟空，正如撒向三秦大地的智慧火种，预示着主动式、拟人化的智慧家庭生 活，正从愿景加速照进现实。 近日，优必选(09880)与中国电信（601728）陕西公司联合打造的首款"AI大模型家庭小型人形机器 人"——AI悟空，在陕西电信的多家核心营业厅正式上线，意味着双方此前制定的"10万台销量目标"战 略合作正式进入实质交付阶段。 作为一款定位为"家庭新成员"的智慧伴侣，AI悟空在展示初期便展现出强劲的市场吸引力。在营业厅演 示区，AI悟空与孩子们进行流畅的"诗词接龙"。它不仅能对答如流，更能通过生动的肢体动作诠释诗 意，引来在场观众阵阵惊叹。这一场景生动展现了其卓越的多模态交互能力一融合视觉感知、语音交互 与场景化Agent调度于一体，深度融合大模型技术底座，实现了从"被动应答"到"主动服务"的智慧跨 越。 ...