Core Insights - The communication equipment sector experienced a rise of 0.54% on October 9, with GuoDun Quantum leading the gains [1] - The Shanghai Composite Index closed at 3933.97, up 1.32%, while the Shenzhen Component Index closed at 13725.56, up 1.47% [1] Summary by Category Stock Performance - GuoDun Quantum (688027) closed at 398.79, with a significant increase of 13.62% and a trading volume of 64,800 shares, amounting to a transaction value of 2.581 billion [1] - Guanghe Tong (300638) saw a rise of 10.77%, closing at 33.64 with a trading volume of 926,600 shares, totaling 3.101 billion [1] - Other notable performers included: - Shijia Technology (002796) up 9.99% at 21.46 [1] - Yongding Co. (600105) up 9.99% at 13.98 [1] - ZTE Corporation (000063) up 9.51% at 49.98 with a trading volume of 4,508,700 shares, totaling 22.121 billion [1] Market Trends - The overall communication equipment sector saw a net outflow of 804 million from institutional funds, while retail investors contributed a net inflow of 1.257 billion [2] - The sector's performance indicates a mixed sentiment among different types of investors, with retail investors showing confidence despite institutional outflows [2]

Core Viewpoint - Shenzhen Amperelong Technology Co., Ltd. has recently engaged with 18 institutions, including Tianfeng Securities and E Fund, for investor activities, showcasing strong operational performance in the first half of 2025 with significant revenue growth and strategic advancements in various sectors [1] Group 1: Investor Activities - The investor activities included specific object research, on-site visits, and online meetings held from September 5 to September 25, 2025 [1] - Participating institutions included Tianfeng Securities, Century Asset Management, and E Fund among others [1] - Company representatives included Zhang Yanhong, the Secretary of the Board, and Peng Biyong, the Director of Investor Relations [1] Group 2: Financial Performance - In the first half of 2025, the company achieved a revenue of 553,874,075.46 yuan, representing a year-on-year increase of 34.44% [1] - Domestic revenue was 468,344,613.60 yuan, up 38.03%, accounting for 84.56% of total revenue, while overseas revenue was 85,529,461.86 yuan, up 17.68%, making up 15.44% [1] - Net profit attributable to shareholders was 42,132,049.92 yuan, a 19.60% increase year-on-year, with a net profit of 38,266,307.13 yuan after deducting non-recurring gains, reflecting a 24.76% growth [1] Group 3: Product Performance - Pressure sensors generated revenue of 292.41 million yuan, a 61.88% increase, contributing 52.79% to total revenue [1] - Thermistors and temperature sensors achieved revenue of 251.40 million yuan, up 12.99%, accounting for 45.39% of total revenue [1] - MEMS pressure sensors saw a remarkable revenue increase of 382.33%, reaching 24.45 million yuan, indicating strong demand in automotive and home appliance applications [1] Group 4: Strategic Developments - The company is actively expanding into the robotics sector by forming a research team focused on force control sensors [1] - Global expansion includes establishing a wholly-owned subsidiary in Germany for localized sales and support, a research subsidiary in Belgium for sensor chip technology, and a subsidiary in Hong Kong for supply chain coordination [1] - Progress on the production line for EMB brake system force sensors is underway, with equipment selection completed and installation in progress to meet market demand [1]

Market Overview - The communication equipment sector experienced a decline of 2.18% on September 30, with Feiling Kesi leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Notable gainers in the communication equipment sector included: - Dingxin Communication (603421) with a closing price of 8.00, up 10.04% and a trading volume of 274,800 shares [1] - Bingjin Co., Ltd. (603118) closed at 13.76, up 6.01% with a trading volume of 1,377,400 shares [1] - Xinkai Mobile (688387) closed at 6.94, up 3.58% with a trading volume of 529,600 shares [1] - Major decliners included: - Feiling Kesi (301191) closed at 110.45, down 6.37% with a trading volume of 58,700 shares [2] - Xinyi Sheng (300502) closed at 365.77, down 5.80% with a trading volume of 495,900 shares [2] - Guangku Technology (300620) closed at 118.80, down 5.11% with a trading volume of 166,200 shares [2] Capital Flow - The communication equipment sector saw a net outflow of 5.981 billion yuan from institutional investors, while retail investors contributed a net inflow of 3.771 billion yuan [2][3] - Notable stocks with significant capital flow included: - Dingxin Communication (603421) had a net inflow of 105 million yuan from institutional investors, representing 48.64% of its total capital flow [3] - Bingjin Co., Ltd. (603118) experienced a net outflow of 23.5 million yuan from institutional investors, accounting for 12.28% of its total capital flow [3]

Group 1 - The core point of the news is that Shenzhen Flingcos Communication Technology Co., Ltd. experienced a stock price drop of 5.16%, with a current share price of 111.88 CNY and a market capitalization of 7.758 billion CNY [1] - The company, established on April 16, 1999, specializes in the research, development, production, and sales of network equipment, primarily operating under ODM/OEM models [1] - The revenue composition of the company includes 78.42% from switch products, 16.96% from routers and wireless products, 4.00% from communication equipment components, and 0.62% from automotive electronics [1] Group 2 - Among the top ten circulating shareholders of Flingcos, Huashang Fund's Huashang Credit Enhanced Bond A (001751) entered the list in the second quarter, holding 214,800 shares, which is 0.47% of the circulating shares [2] - The estimated floating loss for Huashang Credit Enhanced Bond A today is approximately 1.3081 million CNY [2] - The fund was established on September 8, 2015, with a current scale of 4.865 billion CNY and has achieved a year-to-date return of 19.58% [2]

Group 1 - The core point of the news is that Shenzhen Flingcos Communication Technology Co., Ltd. experienced a stock price drop of 5.02%, with a current share price of 118.80 yuan and a total market capitalization of 8.238 billion yuan [1] - The company, established on April 16, 1999, specializes in the research, development, production, and sales of network equipment, primarily operating under ODM/OEM models [1] - The revenue composition of the company's main business includes 78.42% from switch products, 16.96% from routers and wireless products, 4.00% from communication equipment components, and 0.62% from automotive electronics [1] Group 2 - From the perspective of fund holdings, the Guoshou Anbao Fund has a significant position in Flingcos, with its Guoshou Anbao Stable Hong Mixed A fund holding 8,000 shares, representing 1.32% of the fund's net value [2] - The fund has a total scale of 33.7229 million yuan and has achieved a year-to-date return of 12.94% [2] - The fund manager, Tang Xiaotian, has been in position for 1 year and 201 days, with the fund's total asset size at 2.133 billion yuan [3]

Group 1 - The company’s main business includes smart terminals such as smart wireless routers, smart cloud-managed switches, smart IoT gateways, and smart home central controllers. Wireless devices include wireless AP/AC, wireless routers, 4G/5G routers, and wireless CPE terminals [2] - As of August 31, 2025, the company has repurchased a total of 454,300 shares through a dedicated repurchase account, accounting for approximately 0.66% of the current total share capital. The repurchase plan aimed at maintaining company value and shareholder rights has been completed, while the repurchase for equity incentives or employee stock ownership plans has not yet been completed [2] - The company will implement the repurchase plan for equity incentives or employee stock ownership based on market conditions and will fulfill information disclosure obligations in accordance with relevant laws and regulations [2]

Core Viewpoint - The report from Tianfeng Securities indicates that Feiling Kesi's net profit attributable to shareholders for the first half of 2025 (25H1) was 21.88 million yuan, a year-on-year decline of 71.32% [1]. Financial Performance - In Q2 2025, the net profit attributable to shareholders was 11.17 million yuan, reflecting a year-on-year decrease of 73.49% [1]. - The overall gross margin for the first half of 2025 was 13.47%, down 4.16 percentage points from the same period last year [1]. - The gross margin for Q2 2025 was 13.85%, showing a quarter-on-quarter improvement but a year-on-year decline of 4.89 percentage points [1]. Investment and Future Outlook - The company has increased its investment in research and development, including servers and related businesses, which is expected to enhance profitability once these initiatives yield results [1]. - With the continuous evolution of AI, there is a sustained increase in demand for ICT-related products, positioning the company to capitalize on market opportunities in infrastructure hardware [1]. - The company is focusing on a diversified product layout, including CT, IT, high-end PCBA, and automotive electronics, which may benefit from industry growth driven by AI [1]. Profit Forecast - The net profit attributable to shareholders for 2025 and 2026 has been adjusted to 70 million yuan and 120 million yuan, respectively, down from previous estimates of 220 million yuan and 290 million yuan [1]. - The forecast for net profit attributable to shareholders in 2027 is set at 180 million yuan, with corresponding PE valuations for 2025-2027 at 107, 64, and 43 times, respectively [1]. - The rating for the company remains "Accumulate" [1].

Market Overview - On September 26, the communication equipment sector declined by 2.8%, with Wanma Technology leading the drop [1] - The Shanghai Composite Index closed at 3828.11, down 0.65%, while the Shenzhen Component Index closed at 13209.0, down 1.76% [1] Stock Performance - Notable gainers in the communication equipment sector included: - Feiling Kesi (301191) with a closing price of 125.08, up 6.72% [1] - Sinan Navigation (688592) at 49.00, up 6.57% [1] - Cambridge Technology (603083) at 133.05, up 6.55% [1] - Major decliners included: - Wanma Technology (300698) at 47.20, down 7.61% [2] - Taicheng Light (300570) at 106.02, down 6.98% [2] - Lian Te Technology (301205) at 97.05, down 6.54% [2] Capital Flow - The communication equipment sector experienced a net outflow of 4.834 billion yuan from institutional investors, while retail investors saw a net inflow of 2.787 billion yuan [2] - The sector's overall capital flow indicates a mixed sentiment among different investor types [2] Individual Stock Capital Flow - Key stocks with significant capital flow include: - Cambridge Technology (603083) with a net inflow of 52.9 million yuan from institutional investors [3] - Feiling Kesi (301191) saw a net inflow of 82.92 million yuan from institutional investors [3] - Xin Ke Mobile (688387) had a net inflow of 46.39 million yuan from institutional investors [3]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company reported a revenue of 722 million yuan in the first half of 2025, a year-on-year decrease of 12.39%, and a net profit attributable to shareholders of 21.88 million yuan, down 71.32% year-on-year [1] - In Q2, the company achieved a revenue of 432 million yuan, a year-on-year increase of 3.59% and a quarter-on-quarter increase of 49.03%, with a net profit of 11.17 million yuan, down 73.49% year-on-year [2] - The overall gross margin for the first half of the year was 13.47%, a decrease of 4.16 percentage points year-on-year, while Q2 gross margin was 13.85%, showing a quarter-on-quarter improvement but a year-on-year decline of 4.89 percentage points [3] - The data center switch business saw significant growth, with sales revenue increasing by approximately 119% year-on-year in the first half of 2025, driven by AIGC [4] - The company is expanding its product layout to capture opportunities in AI, forming a multi-dimensional business system that includes CT communication, IT computing, high-end PCBA manufacturing, and automotive electronics [5] Financial Data and Valuation - The company’s projected net profits for 2025 and 2026 are adjusted to 70 million yuan and 120 million yuan, respectively, with a forecast of 180 million yuan for 2027 [5] - The corresponding PE ratios for 2025 to 2027 are projected to be 107, 64, and 43 times [5] - The company’s revenue is expected to decline by 11.80% in 2023, 19.09% in 2024, and 5.50% in 2025, before increasing by 36.25% in 2026 and 34.15% in 2027 [11]

Investment Rating - The report maintains an "Overweight" rating for the communication industry [5]. Core Insights - The communication industry experienced steady revenue growth and accelerated profitability in H1 2025, with total revenue reaching 1,785 billion yuan, a year-on-year increase of 10.07%, and net profit attributable to shareholders at 160.43 billion yuan, up 11.26% year-on-year [2][8]. - In Q2 2025, the industry continued to show robust growth, with revenue of 942.48 billion yuan, reflecting a year-on-year increase of 10.91%, and net profit attributable to shareholders of 98.68 billion yuan, up 12.33% year-on-year [11]. - Key sectors such as optical modules, communication PCBs, network equipment manufacturers, and IoT modules demonstrated strong performance, ranking among the top five in revenue and net profit growth rates [14][16]. Summary by Sections 1. H1 2025 Performance Overview - The communication industry achieved total revenue of 1,785 billion yuan in H1 2025, with a year-on-year growth of 10.07%, and net profit attributable to shareholders of 160.43 billion yuan, up 11.26% year-on-year [2][8]. 2. AI Industry Chain Investment - Overseas cloud vendors are expected to maintain optimistic growth in capital expenditures, with a total of 95 billion USD in Q2 2025, marking an increase of 82.96% year-on-year [22]. - Major companies like Apple and Meta are significantly increasing their investments in AI infrastructure, indicating a robust outlook for the AI industry chain [22][24]. 3. Sector Performance Changes - The optical module and device sector reported revenue of 479.88 billion yuan in H1 2025, with a year-on-year increase of 64.88%, and net profit of 108.76 billion yuan, up 111.99% year-on-year [31]. - The communication PCB sector achieved revenue of 572.49 billion yuan in H1 2025, reflecting a year-on-year growth of 37.66%, and net profit of 80.58 billion yuan, up 80.79% year-on-year [36]. - The network equipment sector generated revenue of 5,071.11 billion yuan in H1 2025, with a year-on-year increase of 28.86%, and net profit of 191.84 billion yuan, up 19.57% year-on-year [40]. 4. Telecom Operators' Performance - The basic telecom operators' sector reported revenue of 10,133.93 billion yuan in H1 2025, a slight increase of 0.33% year-on-year, with net profit of 1,136.01 billion yuan, up 5.14% year-on-year [54]. - China Mobile's total connections reached 3.815 billion, with a net increase of 145 million, and its digital transformation revenue grew by 6.6% year-on-year [55].