Zhongyuan Securities·2025-06-11 00:15Investment Rating - The report maintains an "Outperform" investment rating for the communication industry [6][7]. Core Insights - The communication industry index outperformed the Shanghai Composite Index in May 2025, with a rise of 5.53% compared to +2.09% for the Shanghai Composite Index [6][12]. - In the first four months of 2025, the total telecom business revenue reached 598.5 billion yuan, showing a year-on-year growth of 1.0% [6][43]. - The report highlights a significant increase in 5G mobile phone shipments, which grew by 5.6% year-on-year in the first four months of 2025, accounting for 85.5% of total mobile phone shipments [6][69]. - The export volume of optical modules in April 2025 increased by 13.5% year-on-year, indicating a recovery in overseas demand [6][6]. - The report emphasizes the optimistic outlook for capital expenditure from major cloud vendors, which is expected to drive demand for optical devices [6][7]. Summary by Sections Market Review - The communication industry index rose by 5.53% in May 2025, outperforming major indices [12][15]. - Various sub-sectors within the communication industry saw positive performance, with network equipment and other communication devices increasing by 14.4% and 6.3% respectively [15][16]. Industry Tracking - Global cloud infrastructure spending reached $94 billion in Q1 2025, a 23% year-on-year increase [20][21]. - Major cloud providers are significantly increasing their capital expenditures, with North America's top four cloud companies spending a total of $76.5 billion in Q1 2025, up 64% year-on-year [21][24]. - 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 [32][35]. Domestic Telecom Industry Tracking - The number of mobile phone users reached 1.803 billion by April 2025, with 5G users accounting for 59.9% of this total [43][46]. - The average monthly data usage (DOU) per user reached 20.43 GB in April 2025, reflecting a year-on-year increase of 14.6% [53][54]. - The construction of gigabit optical fiber networks is progressing, with 10G PON ports increasing by 18.45% year-on-year [56][57]. Domestic Mobile Phone Industry Tracking - In April 2025, domestic mobile phone shipments totaled 25.04 million units, a 4.0% year-on-year increase [69][72]. - The report notes that domestic brands accounted for 86.9% of total mobile phone shipments in the first four months of 2025, with a year-on-year growth of 7.8% [72][73].