CHINA DRAGON SECURITIES·2025-07-07 06:11Group 1 - The communication industry is experiencing steady growth, with 92 covered companies achieving a total revenue of 625.25 billion yuan, a year-on-year increase of 2.62%, and a net profit of 52.14 billion yuan, up 7.12% [5][62] - The optical module and satellite internet sectors are performing exceptionally well, with significant demand for high-end optical modules and a rapid expansion of the satellite internet market [5][62] - The report maintains a "recommended" rating for the communication industry, emphasizing investment opportunities in optical modules and satellite internet [5][62] Group 2 - The demand for high-end optical modules is robust, driven by the rise of AI applications, with the global market for 800G Ethernet optical modules expected to exceed 40 billion yuan by 2025 [5][38] - Chinese companies are increasing their market share in the optical module sector, with seven out of the top ten global suppliers being Chinese [5][38] - The satellite internet industry is rapidly developing, supported by government policies, with the market expected to reach 59.34 billion yuan by 2031 [55][62] Group 3 - The AI server market is projected to grow significantly, with global market size expected to reach 158.7 billion yuan by 2025, which will further drive the demand for optical modules [31][35] - The capital expenditure of major cloud service providers in North America is increasing, indicating a sustained demand for AI servers and related optical modules [33][35] - The satellite internet applications are diversifying, covering various sectors including government, defense, and public services, with a focus on low-latency and high-bandwidth services [45][55]