ZTE(SZ:000063)2025-03-04 07:31Investment Rating - The report maintains a "Recommended" rating for the communication industry [2] Core Viewpoints - The global artificial intelligence market continues to grow, with China's intelligent computing development rate exceeding expectations. IDC forecasts that by 2025, China's intelligent computing scale will reach 1,037.3 EFLOPS, with a compound annual growth rate of 46.2% from 2023 to 2028 [31][36] - The report emphasizes the importance of the upcoming Two Sessions meetings in March 2025, which may influence policy directions and market sentiment [11] - The communication sector is expected to benefit from the digital economy's new infrastructure, with a focus on AI applications and the recovery of the optical network industry chain [4][24] Summary by Sections 1. Weekly Market Performance - The communication sector index fell by 9.64% in the past week, while the switch manufacturing sub-sector performed well with a gain of 10.04% [8][19] - Among individual stocks, 10.69% increased, 1.53% remained stable, and 87.78% declined [22] 2. Industry Development and Key Events - The report highlights the rapid growth of the industrial internet, 5G applications, and the integration of AI in various sectors, indicating a promising outlook for the communication industry [11][24] - China Mobile has successfully completed the full-stack domestic deployment of DeepSeek V3/R1 for China Petroleum, enhancing AI technology applications in the energy sector [9] 3. Major Equipment Manufacturers' Dynamics - ZTE Corporation reported a revenue of 121.3 billion yuan and a net profit of 8.42 billion yuan for 2024, maintaining stable performance despite a decline in telecom capital expenditure [10][49] - Huawei announced the launch of the Star River communication system, marking a significant breakthrough in satellite communication technology [10][49] 4. Investment Recommendations - The report suggests focusing on high-quality stocks in sub-sectors with improving market conditions, particularly in digital infrastructure and AI applications [4][24]