Market Performance - A-shares showed a steady upward trend last week, with major indices reaching new highs for the year. The Shanghai Composite Index closed at 3534.48 points, up 0.69% for the week, while the Shenzhen Component Index rose 2.04% to 10913.84 points, and the ChiNext Index increased by 3.17% to 2277.15 points [1] - The total trading volume for the week was 7.73 trillion yuan, marking the largest weekly trading volume in three months [1] - Over 3100 stocks rose during the week, with 311 stocks increasing by more than 10%, 86 by over 20%, and 23 by over 30% [1] Sector Performance - Among the 31 first-level industries, 24 saw gains, with 11 industries rising more than 2% and 6 industries increasing over 3%. The top three performing sectors were Utilities (7.59%), Pharmaceuticals (4.80%), and Communications (3.65%) [1] - Conversely, 7 industries experienced declines, with Real Estate, Media, and Non-Bank Financials showing the largest drops of 1.99%, 1.72%, and 0.82% respectively [1] Investment Opportunities - The light module sector (CPO) and innovative pharmaceuticals showed strong performance, with companies like New Yisheng and Zhongji Xuchuang reporting significant weekly gains of over 39% and 40% respectively [2][3] - New Yisheng projected a net profit of 3.7 billion to 4.2 billion yuan for the first half of 2025, representing a year-on-year growth of 327.68% to 385.47% [3] - Zhongji Xuchuang also forecasted a net profit of 3.6 billion to 4.4 billion yuan for the same period, with a growth rate of 52.64% to 86.57% [3] Future Market Outlook - Analysts suggest that the current upward trend in the A-share market is likely to continue, with a focus on mid-year performance opportunities. Companies with strong earnings growth are expected to attract institutional investment [4] - Key sectors to watch include AI, pharmaceuticals, semiconductors, and large financials, particularly those with low valuations and improving fundamentals [4] - Financial analysts highlight four areas of opportunity: sectors related to "de-involution" such as photovoltaics and lithium batteries, stablecoin-related sectors, precious metals, and companies with better-than-expected mid-year forecasts [5]

Group 1 - The innovation drug and AI computing sectors showed strong performance, with related ETFs rising significantly, such as the Huatai-PB Hang Seng Innovation Drug ETF increasing over 13% [1][2] - The first batch of 10 Sci-Tech Bond ETFs launched on July 17, attracting nearly 60 billion yuan in net inflows over two trading days, increasing total scale from under 29 billion yuan to over 88 billion yuan [2][3] - Major pharmaceutical companies in China are expanding their business development efforts due to the upcoming patent cliff for multinational corporations, indicating a strengthening of China's innovation drug sector [1] Group 2 - The AI computing sector also performed well, with stocks like New Yisheng rising nearly 40%, and several ETFs in this space increasing over 10% [2] - Fund managers are applying for their Sci-Tech Bond ETFs to be included in the repurchase pledge library, which could enhance market liquidity and attract more long-term capital [3] - The leading broad-based ETFs experienced significant outflows, with a total net outflow of nearly 20 billion yuan for ETFs tracking major indices [3] Group 3 - The A-share market remains strong due to stable policy expectations, which have created a "buffer" against macroeconomic disturbances [4] - There is a focus on low-valuation cyclical stocks in the short term, while mid-term opportunities lie in sectors benefiting from supply-side improvements and policy support [4] - The outlook for the Chinese stock market is positive, driven by favorable policies and potential reallocation opportunities in sectors like AI and emerging industries [5]

Investment Rating - The report maintains an "Outperform" rating for the communication industry [4] Core Insights - The communication industry is experiencing significant growth driven by the demand for high-speed optical modules and AI chip infrastructure, particularly in the context of companies like Nvidia and TSMC reporting strong earnings [1][3][17] - The performance of key companies such as Zhongji Xuchuang and Xinyi Sheng indicates a robust outlook for the optical module sector, with substantial year-on-year profit growth expected [1][30][36] Summary by Sections Industry News Tracking - Zhongji Xuchuang forecasts a net profit of 3.6 to 4.4 billion yuan for H1 2025, representing a year-on-year increase of 52.64% to 86.57% due to rising demand for 800G and 1.6T optical modules [1] - Xinyi Sheng anticipates a net profit of 3.7 to 4.2 billion yuan for H1 2025, with a staggering year-on-year growth of 327.68% to 385.47%, driven by changes in demand structure and increased production capacity [1][31] - TSMC reported a Q2 2025 revenue of 933.8 billion NTD, a 38.6% increase year-on-year, with net profit rising 61% [1][17] Investment Recommendations - Focus on AI computing infrastructure across various segments, particularly optical devices and modules, as well as domestic computing companies benefiting from increased investment in 2025 [3][59] - Long-term investment in the three major telecom operators is recommended due to their stable operations and increasing dividend payouts [3][59] Key Company Earnings Forecasts - Zhongji Xuchuang's H1 2025 net profit is projected to be between 3.6 billion and 4.4 billion yuan, with a growth rate of 52.64% to 86.57% [36] - Xinyi Sheng's H1 2025 net profit is expected to be between 3.7 billion and 4.2 billion yuan, reflecting a growth of 327.68% to 385.47% [31] - Guangku Technology anticipates a net profit of 48.56 to 54.63 million yuan for H1 2025, with a year-on-year increase of 60% to 80% [42]

多图速览>> 本周（7月14日至7月18日）的五个交易日中，A股三大指数集体上涨，沪指累计涨0.69%，深成指涨2.04%，创业板指涨3.17%。 | 指数 | 周五涨跌幅 | 周五收盘点数 | 周五成交额(亿元) | 近一周涨跌幅 | स्टे | | --- | --- | --- | --- | --- | --- | | 上证指数 | 0.50% | 3534 | 6436 | 0.69% | ת | | 深证成指 | 0.37% | 10914 | 9274 | 2.04% | | | 北证50 | -0.67% | 1419 | 225 | -0.15% | 31 | | 科创50 | 0.19% | 1008 | 269 | 1.31% | | | 创业板指 | 0.34% | 2277 | 4325 | 3.17% | 6 | | 上证50 | 0.74% | 2765 | ત્ત્વે સ | 0.28% | | | 泊深300 | 0.60% | 4059 | 3542 | 1.09% | | Wind数据显示，本周（7月14日至7月18日）共有23只个股涨幅超30%，9只个股涨超40%。 ...

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].

Core Viewpoint - The article highlights the ongoing strong performance of the innovative drug sector, with several fund managers increasing their allocations to this area, indicating a positive outlook for the future despite potential adjustments and volatility ahead [2][3][8]. Group 1: Fund Managers' Adjustments - Fund manager Fu Pengbo has increased allocations to the pharmaceutical sector, particularly in innovative drugs and traditional medicine benefiting from AI, while also adjusting positions in the export chain [4]. - Fund manager Gao Nan has shifted focus towards TMT (Technology, Media, and Telecommunications) and innovative drugs, with significant growth in fund size, indicating a strategic pivot in investment focus [5][6]. - Both fund managers express confidence in the continuation of the innovative drug market's upward trend, emphasizing the importance of evaluating company performance through upcoming mid-year reports [4][10]. Group 2: Market Dynamics and Trends - The innovative drug sector is seen as a necessary evolution rather than an option, with Chinese companies positioned to benefit from global competition and transparency in drug development [9][10]. - Factors contributing to the success of Chinese innovative drugs include high research efficiency, lower operational costs, and a well-established industry chain that supports rapid market entry and commercialization [9]. - The article notes that while the innovative drug sector has strong long-term potential, it has already experienced significant gains, suggesting that market corrections and fluctuations are likely in the near future [3][11].

Investment Rating - The report maintains a "Buy" rating for key companies in the computing power industry chain, specifically recommending leading companies in the optical module sector such as Zhongji Xuchuang and Xinyi Sheng [3][8][26]. Core Insights - The computing power industry is experiencing a significant surge, driven by multiple factors including the strong performance of major companies like Nvidia, which has reached a market capitalization of $4.2 trillion, and the projected capital expenditures (Capex) of over $300 billion by major cloud service providers (CSPs) in 2025 [1][21]. - The report identifies four key milestones in AI technology that are reshaping market perceptions, including the upcoming release of GPT-5, which will support multi-modal inputs, and the introduction of advanced chips like Broadcom's Tomahawk Ultra [2][22]. - There is a growing recognition of the rigid demand for computing power, with significant investments and user willingness to pay for AI services, indicating a robust market outlook despite concerns about Capex sustainability and ROI [3][27]. Summary by Sections Market Dynamics - The computing power sector has seen explosive growth, with Zhongji Xuchuang's market value surpassing 200 billion yuan and Xinyi Sheng achieving a 39% weekly increase in market value [1][16]. - The optical communication index has outperformed other sectors, with a 16.9% increase, reflecting strong investor sentiment and performance in the optical module market [17][20]. Key Milestones - AI technology is transitioning towards multi-modal capabilities, with significant hardware upgrades and increased penetration rates [2][22]. - Major CSPs have revised their Capex expectations upwards, confirming the high demand for computing power [22]. Investment Opportunities - The report emphasizes the importance of the optical communication sector as a critical component of AI infrastructure, suggesting that companies like Zhongji Xuchuang and Xinyi Sheng will benefit from this trend [8][26]. - It also highlights the potential of domestic computing power supply chains, particularly in liquid cooling technologies [26][27]. Company Performance - Zhongji Xuchuang and Xinyi Sheng are highlighted as key players, with projected earnings per share (EPS) growth and favorable price-to-earnings (PE) ratios indicating strong future performance [11][14]. - The report notes that the market is shifting towards value investment in high-performing companies, moving away from high-risk classifications [25].

2025 年 07 月 20 日 投资评级：看好（维持） 行业走势图 数据来源：聚源 -17% 0% 17% 34% 50% 67% 2024-07 2024-11 2025-03 通信 沪深300 相关研究报告 通信 业 研 《英伟达将恢复 H20 在华销售，核心 利好 AIDC 链—行业点评报告》- 2025.7.15 《算力公司业绩亮眼，Grok-4 发布， AWS 推出 GB200 UltraServers，看好 全球 AIDC 产业链—行业周报》- 2025.7.13 《AI 驱动光铜共进，AEC 等受益于 高速短距连接需求—行业深度报告》 -2025.7.8 海外 AI 或估值提升，国内 AI 迎基本面拐点 ——行业周报 | 蒋颖（分析师） | 雷星宇（联系人） | 陈光毅（联系人） | | --- | --- | --- | | jiangying@kysec.cn | leixingyu@kysec.cn | chenguangyi@kysec.cn | | 证书编号：S0790523120003 | 证书编号：S0790124040002 | 证书编号：S0790124020006 | 算力 ...

Core Viewpoint - The A-share market has shown a positive trend with significant gains in various sectors, particularly in optical modules and semiconductor companies, driven by strong institutional interest and promising earnings forecasts [2][3][4]. Market Performance - During the week of July 14 to 18, the three major A-share indices continued to rise, with the Shanghai Composite Index increasing by 0.69% to close at 3534.48 points, the Shenzhen Component Index rising by 2.04%, and the ChiNext Index gaining 3.17% [2]. Hot Topics - The market experienced rapid rotation of hot topics, with sectors such as optical modules (CPO), innovative drugs, rare earths, generic drugs, and weight loss drugs performing notably well [3]. Institutional Research - Institutional research remained active, with 160 listed companies disclosing research summaries. Approximately 70% of these companies achieved positive returns, with New Yisheng's stock price increasing by over 39% and several others, including Zhongdali De and Hengshuai, rising by over 20% [3]. Optical Module Sector - The optical module sector emerged as a leading theme, largely due to strong earnings forecasts from key companies. New Yisheng, which saw the highest stock price increase among researched companies, projected a net profit of 3.7 billion to 4.2 billion yuan for the first half of 2025, representing a year-on-year growth of 327.68% to 385.47% [4]. - Zhongji Xuchuang, another key player in the optical module sector, expects a net profit of 3.6 billion to 4.4 billion yuan for the same period, reflecting a year-on-year increase of 52.64% to 86.57% [4]. AI and Optical Module Demand - Zhongji Xuchuang indicated that demand for 800G optical modules is expected to grow in the second half of the year, with a gradual increase in 1.6T demand as well [5]. Robotics and Semiconductor Developments - New Times Technology hosted 95 institutional visits focusing on humanoid robot advancements and collaboration with Haier. The company plans to launch a general controller for humanoid robots by 2025 [6]. - Wenta Technology, which received 84 institutional visits, projected a net profit of 390 million to 585 million yuan for the first half of 2025, marking a year-on-year increase of 178% to 317% [6]. Management Changes - Wenta Technology recently announced the resignation of its chairman, vice president, and secretary, stating that the company will focus on its semiconductor business and enhance its management team with experienced professionals in the field [7].

Core Viewpoint - The article highlights the strong performance of the optical module sector in the A-share market, driven by significant growth in companies like New Yisheng and Zhongji Xuchuang, which are benefiting from increased demand for AI-related computing power investments [3][5]. Group 1: Market Performance - During the week of July 14 to 18, the A-share market indices continued to rise, with the Shanghai Composite Index increasing by 0.69% to close at 3534.48 points, the Shenzhen Component rising by 2.04%, and the ChiNext Index gaining 3.17% [3]. - The optical module sector emerged as a leading theme, with several companies in the sector reporting strong earnings forecasts, contributing to the overall market momentum [4][5]. Group 2: Institutional Research - A total of 160 listed companies disclosed institutional research minutes during the week, with approximately 70% of these companies achieving positive returns [3]. - New Yisheng was the most favored stock among institutions, with a price increase of over 39% and 139 institutions conducting research on the company [5]. Group 3: Company Highlights - New Yisheng expects to achieve a net profit of 3.7 billion to 4.2 billion yuan for the first half of 2025, representing a year-on-year growth of 327.68% to 385.47% due to the ongoing investment in AI-related computing power [5]. - Zhongji Xuchuang anticipates a net profit of 3.6 billion to 4.4 billion yuan for the same period, reflecting a year-on-year increase of 52.64% to 86.57%, driven by strong demand for high-end optical modules [6]. - New Shida is also gaining attention, with 95 institutions conducting research, focusing on its humanoid robot advancements and collaboration with Haier [6][7]. Group 4: Semiconductor Sector - Wentai Technology expects a net profit of 390 million to 585 million yuan for the first half of 2025, an increase of 178% to 317% year-on-year, supported by growth in its semiconductor business [8]. - The company is undergoing a strategic shift to focus on its semiconductor operations, following the resignation of several key executives [8].