Guoxin Securities·2025-07-20 11:19Investment Rating - The report maintains an "Outperform" rating for the communication industry [4] Core Insights - The communication industry is experiencing significant growth driven by the demand for high-speed optical modules and AI chip infrastructure, particularly in the context of companies like Nvidia and TSMC reporting strong earnings [1][3][17] - The performance of key companies such as Zhongji Xuchuang and Xinyi Sheng indicates a robust outlook for the optical module sector, with substantial year-on-year profit growth expected [1][30][36] Summary by Sections Industry News Tracking - Zhongji Xuchuang forecasts a net profit of 3.6 to 4.4 billion yuan for H1 2025, representing a year-on-year increase of 52.64% to 86.57% due to rising demand for 800G and 1.6T optical modules [1] - Xinyi Sheng anticipates a net profit of 3.7 to 4.2 billion yuan for H1 2025, with a staggering year-on-year growth of 327.68% to 385.47%, driven by changes in demand structure and increased production capacity [1][31] - TSMC reported a Q2 2025 revenue of 933.8 billion NTD, a 38.6% increase year-on-year, with net profit rising 61% [1][17] Investment Recommendations - Focus on AI computing infrastructure across various segments, particularly optical devices and modules, as well as domestic computing companies benefiting from increased investment in 2025 [3][59] - Long-term investment in the three major telecom operators is recommended due to their stable operations and increasing dividend payouts [3][59] Key Company Earnings Forecasts - Zhongji Xuchuang's H1 2025 net profit is projected to be between 3.6 billion and 4.4 billion yuan, with a growth rate of 52.64% to 86.57% [36] - Xinyi Sheng's H1 2025 net profit is expected to be between 3.7 billion and 4.2 billion yuan, reflecting a growth of 327.68% to 385.47% [31] - Guangku Technology anticipates a net profit of 48.56 to 54.63 million yuan for H1 2025, with a year-on-year increase of 60% to 80% [42]