Guoxin Securities·2025-03-30 13:45Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [6][7]. Core Insights - The telecommunications industry is experiencing growth driven by advancements in AI and communication technologies, with significant events such as the OFC 2025 and ByteDance's AIOT conference expected to accelerate the application of AI in hardware [2][3][4]. - The three major telecom operators reported a combined revenue of CNY 1.96 trillion in 2024, reflecting a year-on-year growth of 3.4%, with a net profit of CNY 192 billion, up 6.1% [4][33]. - The report emphasizes the importance of light communication companies, communication module firms, and submarine cable enterprises as key investment opportunities, alongside the high dividend value of telecom operators [4][5]. Summary by Sections Industry News Tracking - The ByteDance AIOT conference aims to accelerate AI application deployment, focusing on hardware experience innovation [2][13]. - OFC 2025 will showcase advancements in silicon photonics, space optical communication, and data center technologies, including the launch of a 3.2T liquid-cooled co-packaged optics solution [3][19]. Financial Performance of Major Operators - In 2024, China Telecom's revenue reached CNY 529.4 billion, China Unicom's CNY 389.6 billion, and China Mobile's CNY 1.04 trillion, with respective growth rates of 3.1%, 4.6%, and 3.1% [33][34]. - The net profit for China Telecom was CNY 33 billion, China Unicom CNY 20.6 billion, and China Mobile CNY 138.4 billion, showing consistent growth across all three operators [33][34]. Investment Recommendations - The report suggests focusing on light communication companies such as Zhongji Xuchuang, Newyi Sheng, and Tianshu Communication, as well as communication module companies like Guanghetong, and submarine cable firms like Zhongtian Technology and Hengtong Optic-Electric [4][5]. - Long-term perspectives highlight that China Mobile and China Telecom plan to increase their dividend payout ratios to over 75% starting in 2024, enhancing their appeal as dividend assets [4].