Shijia Photons(SH:688313) Changjiang Securities·2025-07-16 05:47Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector saw a 1.99% increase in the 28th week of 2025, ranking 14th among major industries in the Yangtze River region. Year-to-date, the sector has risen by 10.00%, placing it 13th [2][4]. - OpenAI plans to launch an AI browser and open-source a new model, while xAI has released Grok 4 and is initiating a new round of financing to accelerate AI data center construction. The acquisition of Fokexima by Shijia Photon aims to enhance the MPO supply chain [2][5][6][7]. - The current valuation of the communication sector is at a historical low, indicating a high cost-performance ratio for investment [2]. Summary by Sections Market Performance - In the 28th week of 2025, the communication sector increased by 1.99%, with a year-to-date rise of 10.00%. The top three gainers among companies with a market cap over 8 billion yuan were Hengbao Co. (+21.1%), Changxin Bochuang (+19.8%), and Shijia Photon (+14.8%). The top three decliners were Runze Technology (-4.1%), Canqin Technology (-3.4%), and Guomai Technology (-3.4%) [4]. AI and Computing Developments - OpenAI is set to release a browser integrated with a generative AI assistant, which could challenge Chrome's market dominance. Additionally, OpenAI will soon unveil an open-source language model, marking its first release since 2019 without Microsoft's involvement [5]. - xAI's Grok 4, touted as the "world's strongest AI," has surpassed doctoral-level performance in standardized tests. The company is preparing for a new financing round valued between 170 billion to 200 billion USD, with participation from Saudi Aramco's PIF fund [6]. Strategic Acquisitions - Shijia Photon plans to acquire 82.4% of Fokexima, a leading supplier of MT connectors, to strengthen its MPO product line. Fokexima's production capacity has exceeded 10 million units per month, and its revenue for 2024 is projected at 270 million yuan, reflecting a 225% year-on-year increase [7]. Investment Recommendations - The report recommends focusing on key players in various segments: - Telecom operators: China Mobile, China Telecom, China Unicom - Optical modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Shijia Photon - Domestic computing: Fenghuo Communication, Huafeng Technology, Yingweike, Runze Technology, Guanghuan New Network, Aofei Data, Guangxun Technology, ZTE, Unisplendour - AI applications: Heertai, Tuobang Technology, Yiyuan Communication, Meige Intelligent, Guanghetong, Boshijie, Aojie Technology - Satellite applications: Haige Communication, Huace Navigation [8].