Nvidia(US:NVDA) Zhongyuan Securities·2025-07-09 13:09Investment Rating - The report maintains an "Outperform" investment rating for the communication industry [6][7]. Core Insights - The communication industry index outperformed the CSI 300 index in June 2025, with a rise of 13.15% compared to the Shanghai Composite Index (+2.90%) and CSI 300 Index (+2.50%) [6][12]. - Telecom business revenue showed a year-on-year increase of 1.4% in the first five months of 2025, totaling 748.8 billion yuan [6][41]. - The penetration of 5G mobile phone users reached 60.8% by May 2025, with a monthly average data usage (DOU) of 21.3GB per user, reflecting a year-on-year increase of 14.9% [6][43][47]. - Retail sales of communication equipment increased by 33.0% year-on-year in May 2025, driven by smartphone upgrades and market promotions [6][37]. - The report highlights the expected growth in AI mobile phones, with a projected penetration rate of 34% in 2025 [6][7]. Summary by Sections Market Review - The communication industry index rose by 13.15% in June 2025, outperforming major indices [12][15]. - Sub-sectors such as network equipment and communication terminals saw significant gains, with increases of 37.00% and 13.97% respectively [15][16]. Industry Tracking - Global cloud infrastructure spending reached $90.9 billion in Q1 2025, a 21% year-on-year increase, driven by AI application deployments [20][28]. - The domestic ICT market is projected to grow significantly, with an estimated size of $751.76 billion by 2028, reflecting a CAGR of 6.5% [32][40]. Domestic Telecom Industry Tracking - Telecom business revenue totaled 748.8 billion yuan in the first five months of 2025, with a total business volume growth of 8.6% [41][42]. - The number of 5G mobile phone users reached 1.098 billion by May 2025, with a net increase of 84.14 million users since the end of 2024 [43][44]. - The number of broadband users with gigabit access reached 223 million, accounting for 32.7% of total broadband users [45][53]. Emerging Business Development - Telecom operators are focusing on key sectors such as industrial manufacturing and digital government, leveraging cloud and new digital technologies [56][62].