HTSC·2025-06-10 00:45Investment Rating - The report maintains an "Overweight" rating for the communication industry [8] Core Insights - The report highlights strong investment opportunities in the optical module sector and CPO technology, driven by continuous high growth in performance and low PE valuations [12][13] - Broadcom's recent launch of the TH6 chip is expected to accelerate the implementation of CPO technology, which is anticipated to significantly enhance GPU cluster stability and reduce link fluctuations [2][13] - The report emphasizes the potential for AI business revenue growth, with network products contributing 40% to Broadcom's AI revenue in Q2 FY25, and forecasts that at least three clients will deploy million-card clusters by 2027 [12][14] Summary by Sections Market Performance - The communication index rose by 5.27% last week, outperforming the Shanghai Composite Index and Shenzhen Component Index, which increased by 1.13% and 1.42% respectively [12] Key Companies and Dynamics - Recommended companies include ZTE Corporation, Zhongji Xuchuang, Xinyi Technology, Tianfu Communication, Taicheng Light, and Global Data, focusing on AI computing power chains and core asset value reassessment [2][9] Investment Recommendations - Specific stock recommendations include: - China Mobile (600941 CH) - Buy, target price 126.40 - China Telecom (601728 CH) - Buy, target price 9.13 - China Unicom (600050 CH) - Hold, target price 7.62 - ZTE Corporation (000063 CH) - Buy, target price 39.41 - Zhongji Xuchuang (300308 CH) - Buy, target price 164.78 - Xinyi Technology (300502 CH) - Buy, target price 128.76 - Tianfu Communication (300394 CH) - Buy, target price 119.12 - Taicheng Light (300570 CH) - Hold, target price 99.01 - Lais Information (688631 CH) - Hold, target price 84.41 - Global Data-SW (9698 HK) - Buy, target price 40.47 [9][50]