Summary of AI Industry Conference Call Industry Overview - The AI chip demand is surging, driving the development of the industry chain, with major players like Meta and Google accelerating their ASIC chip deployments and repeatedly raising their demand forecasts for 2026, particularly with Google's V7 chip set to fully adopt liquid cooling technology [1][2] Key Points and Arguments - **Liquid Cooling Technology**: - Liquid cooling has become a standard for AI giants, with Google planning to fully adopt it by 2026 and Meta already implementing it in their self-developed chips [1][3] - Infinet is collaborating with Google to develop a universal CDU suitable for various ASIC chips, indicating a trend towards silent liquid cooling in the future [1][4] - **High-Speed Optical Modules**: - The evolution towards 1.6T optical modules is evident, with Google's V7 chip primarily utilizing this technology, benefiting leading companies like Zhongji Xuchuang and Xinyi Sheng [1][5] - The demand for CW light sources is also increasing, positively impacting companies like Yuanjie Technology [1][5] - **OCS Switches**: - Google's OCS switches are expected to achieve over 50% growth next year, benefiting manufacturers like Dekoli and Guangku Technology, as well as component suppliers like Tengjing Technology and Juguang Technology [1][6] - **Competitive Advantages**: - Infinet stands out in the global AI industry chain due to its comprehensive solutions and delivery capabilities, having secured clients like Intel, Meta, Google, and OpenAI [1][7][8] - Zhongji Xuchuang and Xinyi Sheng are recognized as leaders in the high-speed optical module sector, while Yuanjie Technology is a key supplier in the CW light source market [1][8] Additional Insights - **Market Dynamics**: - The global AI industry chain is accelerating, particularly in overseas markets, with OpenAI collaborating with major chip companies like Broadcom, AMD, and NVIDIA, creating a significant siphoning effect [2] - The domestic AI computing card market is currently facing a supply shortage, but improvements are expected in 2026, with major domestic players like Alibaba, ByteDance, and Tencent likely to increase their AI investments significantly [11] - **Emerging Technologies**: - The supernode technology is anticipated to explode in 2026, presenting opportunities across various sectors, including chips, machine manufacturing, optical modules, liquid cooling, copper connections, and server power supplies [12][13] - **AIDC Sector Outlook**: - The AIDC sector, which includes data center construction and power systems, is expected to see improved bidding progress as domestic chip supply increases in 2026, benefiting companies in cooling, power supply, and data center management [14] - **Market Volatility**: - Short-term market fluctuations due to tariff disturbances are not expected to alter the long-term growth trajectory of the AI industry, with upcoming catalysts likely to positively impact the entire industry chain [15]

Investment Rating - The report maintains a positive outlook on the communication industry, emphasizing three main lines of investment: AI computing network differentiation, strengthening of the satellite industry, and optimization of the economic cycle [5][6]. Core Insights - The AI industry is evolving towards inference-driven models, with a diversified computing power solution landscape. The domestic supply chain for chips and modules is beginning to integrate, and the data center supply-demand inflection point has emerged [5][6]. - The satellite communication sector is experiencing significant catalysts, with a complete industry chain forming. Direct satellite connections are expected to drive growth in antennas, RF chips, and inter-satellite communication [5][6]. - The report identifies several high-quality cyclical stocks with confirmed growth and low valuations, particularly in sectors like Beidou navigation and controllers, suggesting a potential return of the investment "pendulum" [5][6]. Summary by Sections AI Computing Network - The AI computing network is highlighted as a key investment line, with operators actively building computing power and expected stable growth. High dividend yields continue to attract investors [5][6]. - The network equipment sector benefits from AI demand, with capital expenditures from operators and CSPs providing structural boosts [5][6]. - The optical device and chip industry is seeing continuous performance releases, driven by both domestic and international demand [5][6]. Satellite Communication - The satellite internet industry is undergoing intense catalysis, with multiple segments expected to maintain high value and high barrier attributes. The focus is on regular launch progress and commercialization [5][6]. Economic Cycle Optimization - The report emphasizes the recovery of demand in various sectors, including high-precision positioning and connectors, with significant growth expected in industrial automation and IoT driven by AI and robotics [5][6]. - The IDC sector is experiencing a structural supply-demand reversal, with core demand remaining in short supply, indicating a sustained high economic cycle [5][6]. Company Performance Predictions - The report forecasts significant profit growth for key companies in the communication sector for Q3 2025, with expected net profit growth rates exceeding 50% for several firms, including NewEase (220%), and 5.5G Canqin Technology (120%) [5][6]. - Companies like China Mobile and China Telecom are expected to maintain stable capital expenditures and improve return on equity through optimized revenue-cost dynamics [7][8]. Key Companies and Their Prospects - **China Mobile**: Focused on AI computing networks, with stable capital expenditure and improved ROE [7]. - **Zhongji Xuchuang**: Leading in optical modules, benefiting from AI computing demand [7]. - **NewEase**: Strong brand presence in optical communication, expected to benefit from AI computing network demand [7]. - **Tianfu Communication**: Anticipated to maintain high growth due to increasing demand for optical devices [7]. - **Zhongxing Communication**: Positioned well for growth through digital transformation and internal profit margin improvements [8]. This comprehensive analysis highlights the positive outlook for the communication industry, driven by advancements in AI, satellite technology, and cyclical recovery across various sectors.

Investment Rating - The report maintains a positive outlook on the communication industry, indicating an "Overweight" rating for the sector [2][22]. Core Insights - The report emphasizes three main lines for the communication industry in 2025: differentiation in computing networks, strengthening of the satellite industry, and optimization of the economic cycle [4][5]. - The AI industry is evolving towards inference-driven models, with a diversified approach to computing solutions. The supply-demand turning point for data centers has been observed, and technologies like liquid cooling are accelerating penetration [4][5]. - The satellite communication sector is experiencing intensive industry catalysis, forming a closed loop across the entire industry chain, with direct satellite connections expected to drive growth in antennas, RF chips, and inter-satellite communication [4][5]. - The report identifies several high-quality cyclical stocks with confirmed growth and low valuations, particularly in sectors like Beidou navigation and controllers, suggesting a return of the investment "pendulum" [4][5]. Summary by Sections Computing Network - The AI industry trend is shifting towards inference dominance, with the upstream supply chain for domestic chips and modules beginning to integrate [4]. - Data center supply-demand dynamics are changing, with liquid cooling technologies gaining traction [4][5]. Satellite Communication - The second half of 2024 marks a significant catalyst for the satellite communication industry, with a complete industry chain now established [4][5]. Economic Cycle Optimization - The report highlights the importance of downstream economic conditions, particularly in sectors like Beidou navigation and controllers, indicating a strong potential for cyclical stocks [4][5]. Performance Forecast for Key Companies - The report forecasts significant profit growth for key companies in the communication sector for Q3 2025, with expected net profit growth rates exceeding 50% for several firms, including NewEase (220%), and 5.5G Canqin Technology (120%) [4][14]. - Companies like China Mobile and China Telecom are expected to maintain stable capital expenditures, with a focus on AI computing networks [6][14]. Related Companies - Key companies identified include Zhongji Xuchuang, NewEase, and Huagong Technology in the AI computing network segment, and operators like China Mobile and China Telecom [4][6][14].

Market Overview - The Shanghai Composite Index closed at 3912.21 points, with a gain of 1.22% and a total trading volume of 2.09 trillion yuan [1] - A total of 144 A-shares experienced a death cross, where the 5-day moving average fell below the 10-day moving average [1] Notable Stocks with Death Cross - Yuanjie Technology (688498) saw a 4.39% increase today, with a 5-day moving average of 375.13 yuan, which is 2.42% lower than its 10-day moving average of 384.44 yuan [1] - Shanshan Co., Ltd. (600884) had a slight increase of 0.22%, with a 5-day moving average of 14.17 yuan, down 2.32% from its 10-day moving average of 14.51 yuan [1] - WuXi AppTec (603259) rose by 3.69%, with a 5-day moving average of 102.54 yuan, which is 1.84% lower than its 10-day moving average of 104.46 yuan [1] Additional Stocks of Interest - Fabien Information (300925) increased by 2.61%, with a 5-day moving average of 25.74 yuan, down 1.76% from its 10-day moving average of 26.20 yuan [1] - Luokai Co., Ltd. (603829) rose by 1.65%, with a 5-day moving average of 21.34 yuan, which is 1.60% lower than its 10-day moving average of 21.69 yuan [1] - Zhongke Chuangda (300496) increased by 2.24%, with a 5-day moving average of 73.10 yuan, down 1.50% from its 10-day moving average of 74.21 yuan [1]

西部利得新享混合A（008541）基金经理为糜怀清、袁朔。 10月15日，源杰科技涨5.12%，截至发稿，报364.24元/股，成交8.23亿元，换手率3.84%，总市值313.06 亿元。 资料显示，陕西源杰半导体科技股份有限公司位于陕西省西咸新区沣西新城开元路1265号，成立日期 2013年1月28日，上市日期2022年12月21日，公司主营业务涉及光芯片的研发、设计、生产与销售。主 营业务收入构成为：数据中心类及其他51.04%，电信市场类48.73%，技术服务及其他0.23%。 从基金十大重仓股角度 数据显示，西部利得基金旗下1只基金重仓源杰科技。西部利得新享混合A（008541）二季度持有股数 699股，占基金净值比例为1.07%，位居第一大重仓股。根据测算，今日浮盈赚取约1.24万元。 西部利得新享混合A（008541）成立日期2020年5月7日，最新规模312.83万。今年以来收益11.27%，同 类排名5509/8161；近一年收益1.85%，同类排名7468/8015；成立以来收益2.46%。 截至发稿，糜怀清累计任职时间3年26天，现任基金资产总规模1.93亿元，任职期间最佳基金回报 25 ...

Group 1 - The core point of the news is that Yuanjie Technology's stock price increased by 5.12% to 364.24 CNY per share, with a trading volume of 823 million CNY and a turnover rate of 3.84%, resulting in a total market capitalization of 31.306 billion CNY [1] - Yuanjie Technology, established on January 28, 2013, and listed on December 21, 2022, specializes in the research, design, production, and sales of optical chips. The main business revenue composition is 51.04% from data center and other sectors, 48.73% from the telecommunications market, and 0.23% from technical services and others [1] Group 2 - Chang'an Fund has one fund heavily invested in Yuanjie Technology, specifically the Chang'an Industry Select Mixed A (000496), which held 7,621 shares in the second quarter, accounting for 3.06% of the fund's net value, making it the fifth-largest holding. The estimated floating profit today is approximately 135,200 CNY [2] - The Chang'an Industry Select Mixed A (000496) was established on May 7, 2014, with a latest scale of 18.8692 million CNY. Year-to-date returns are 26.77%, ranking 3,046 out of 8,161 in its category; the one-year return is 15.22%, ranking 4,563 out of 8,015; and since inception, the return is 63.32% [2]

Market Overview - The Shanghai Composite Index closed at 3869.25 points, with a change of 0.10% [1] - The total trading volume of A-shares reached 1,280.495 billion yuan [1] Technical Analysis - A total of 175 A-shares experienced a death cross between the 5-day and 10-day moving averages [1] - Notable stocks with significant distance between their 5-day and 10-day moving averages include: - Yuanjie Technology: 5-day MA down by 2.50% from the 10-day MA [1] - Shanshan Shares: 5-day MA down by 2.32% from the 10-day MA [1] - Zijian Electronics: 5-day MA down by 2.09% from the 10-day MA [1] Individual Stock Performance - Yuanjie Technology (688498): Increased by 3.59% with a trading turnover of 2.90% [1] - Shanshan Shares (600884): Increased by 0.22% with a trading turnover of 3.13% [1] - Zijian Electronics (301121): Decreased by 0.60% with a trading turnover of 3.19% [1] - Other notable stocks include: - WuXi AppTec (603259): Increased by 2.21% [1] - Fabon (300925): Increased by 1.67% [1] Summary of Stocks with Death Cross - Stocks with a death cross and their respective metrics include: - Yuanjie Technology: 5-day MA at 374.57 yuan, 10-day MA at 384.17 yuan [1] - Shanshan Shares: 5-day MA at 14.17 yuan, 10-day MA at 14.51 yuan [1] - Zijian Electronics: 5-day MA at 48.72 yuan, 10-day MA at 49.76 yuan [1] - The latest prices of these stocks are below their 10-day moving averages, indicating potential bearish trends [1]

Core Points - The Shanghai Composite Index is at 3876.54 points with a change of 0.29%, and the total trading volume of A-shares is 961.216 billion yuan [1] - A total of 158 A-shares have seen their 5-day moving average cross below the 10-day moving average, indicating potential bearish trends [1] Group 1: Stocks with Significant Moving Average Crosses - Yuanjie Technology (688498) has a 5-day moving average of 374.30 yuan, which is 2.53% lower than its 10-day moving average of 384.03 yuan, with a current price of 357.58 yuan, down 6.89% from the 10-day average [1] - Shanshan Co., Ltd. (600884) shows a 5-day moving average of 14.14 yuan, down 2.43% from its 10-day moving average of 14.49 yuan, with a current price of 13.29 yuan, down 8.28% from the 10-day average [1] - ZhiJian Electronics (301121) has a 5-day moving average of 48.75 yuan, which is 2.05% lower than its 10-day moving average of 49.78 yuan, with a current price of 46.54 yuan, down 6.50% from the 10-day average [1] Group 2: Other Notable Stocks - WuXi AppTec (603259) has a 5-day moving average of 102.27 yuan, which is 1.97% lower than its 10-day moving average of 104.33 yuan, with a current price of 98.12 yuan, down 5.95% from the 10-day average [1] - Fabon Information (300925) shows a 5-day moving average of 25.73 yuan, down 1.78% from its 10-day moving average of 26.20 yuan, with a current price of 25.13 yuan, down 4.07% from the 10-day average [1] - Loka (603829) has a 5-day moving average of 21.29 yuan, which is 1.73% lower than its 10-day moving average of 21.67 yuan, with a current price of 20.07 yuan, down 7.37% from the 10-day average [1]

Core Viewpoint - Yuanjie Technology's stock has experienced significant volatility, with a year-to-date increase of 171.50% but a recent decline of 11.51% over the past five trading days [2] Financial Performance - For the first half of 2025, Yuanjie Technology reported revenue of 205 million yuan, a year-on-year increase of 70.57%, and a net profit attributable to shareholders of 46.26 million yuan, up 330.31% [2] - The company has distributed a total of 90.59 million yuan in dividends since its A-share listing [3] Stock Market Activity - As of October 14, Yuanjie Technology's stock price was 363.01 yuan per share, with a market capitalization of 31.2 billion yuan [1] - The stock has seen a trading volume of 312 million yuan and a turnover rate of 1.40% on the same day [1] - The stock has appeared on the "Dragon and Tiger List" twice this year, with the most recent occurrence on September 3 [2] Shareholder Structure - As of June 30, 2025, the number of shareholders decreased by 20.16% to 7,617, while the average number of circulating shares per person increased by 25.25% to 7,896 shares [2] - Notable institutional shareholders include Changcheng Jiujia Innovation Growth Mixed Fund and Harvest SSE STAR Market Chip ETF, with some changes in their holdings [3]

Core Viewpoint - Yuanjie Technology's stock price has shown significant growth this year, with a year-to-date increase of 182.06%, indicating strong market interest and performance in the semiconductor sector [2]. Financial Performance - For the first half of 2025, Yuanjie Technology reported a revenue of 205 million yuan, representing a year-on-year growth of 70.57%, and a net profit attributable to shareholders of 46.26 million yuan, which is a substantial increase of 330.31% [2]. - The company has distributed a total of 90.59 million yuan in dividends since its A-share listing [3]. Stock Market Activity - As of October 13, Yuanjie Technology's stock price was 377.12 yuan per share, with a market capitalization of 32.41 billion yuan [1]. - The stock has experienced a recent decline of 2.05% in intraday trading, with a trading volume of 638 million yuan and a turnover rate of 2.77% [1]. - The stock has appeared on the "Dragon and Tiger List" twice this year, with the most recent occurrence on September 3 [2]. Shareholder Structure - As of June 30, 2025, the number of shareholders decreased by 20.16% to 7,617, while the average number of circulating shares per person increased by 25.25% to 7,896 shares [2]. - Notable institutional shareholders include Changcheng Jiujia Innovation Growth Mixed Fund and the Jiashi Shanghai Stock Exchange Science and Technology Innovation Board Chip ETF, with changes in their holdings noted [3].