Zhongyuan Securities·2025-05-15 12:24Investment Rating - The report maintains an "Outperform" investment rating for the communication industry [7][8]. Core Insights - The North American cloud vendors have significantly increased their capital expenditures, with a 64% year-on-year growth in Q1 2025, leading to a boost in the optical module market [7][21]. - The communication industry index underperformed the CSI 300 index in April 2025, with a decline of 5.95% [7][13]. - The report highlights the growth in AI-driven data centers and the expected increase in demand for optical devices, particularly 400G and 800G products [7][8]. Summary by Sections 1. Market Review - In April 2025, the communication industry index fell by 5.95%, underperforming compared to the Shanghai Composite Index (-1.70%) and the CSI 300 Index (-3.00%) [7][13]. - The telecom business revenue reached 446.9 billion yuan in Q1 2025, showing a year-on-year growth of 0.7% [7][40]. 2. Industry Tracking 2.1 Global Cloud Infrastructure - Global enterprise spending on cloud infrastructure services reached $94 billion in Q1 2025, a 23% increase year-on-year [20]. - Major cloud vendors, including Amazon, Microsoft, and Google, have increased their capital expenditures significantly, with Amazon's Q1 2025 capital expenditure at $24.3 billion, up 74% [21][23]. 2.2 Domestic ICT Market Development - The domestic ICT market is projected to grow at a compound annual growth rate (CAGR) of 6.5%, reaching approximately $751.76 billion by 2028 [30]. 2.3 Industry Economic Data - The TMT industry revenue grew by 10.6% year-on-year in Q1 2025, indicating strong performance in the sector [34]. 2.4 Domestic Telecom Industry Tracking - As of March 2025, 5G mobile phone users accounted for 59.4% of total mobile phone users, with a total of 1.068 billion 5G users [41]. - The average monthly mobile internet usage (DOU) reached 20.56GB per user in March 2025, a 13.7% increase year-on-year [46]. 3. Investment Recommendations - The report suggests focusing on the optical communication sector, telecom operators, and AI mobile phone segments due to their growth potential driven by increased capital expenditures and technological advancements [8].