HTSC·2025-07-28 09:07Investment Rating - The communication sector maintains a "Buy" rating for key stocks such as Tianfu Communication, Ruijie Network, China Mobile, and China Telecom, while China Unicom is rated as "Overweight" [3][5][61]. Core Insights - In Q2 2025, the communication sector's fund holdings increased to 3.61%, up by 1.31 percentage points, indicating a shift from underweight to overweight status [2][15]. - The communication sector's TTM P/E ratio as of July 24, 2025, is 35.71x, which is at the 37.5% historical percentile since early 2011 [2][15]. - Key areas of focus include the domestic computing power and its supporting industrial chain, particularly in optical modules and related technologies [1][14]. Summary by Sections Market Performance - The communication index fell by 0.77% last week, while the Shanghai Composite Index rose by 1.67% and the Shenzhen Component Index increased by 2.33% [1][14]. Fund Holdings - Q2 2025 saw a rise in the communication sector's fund holdings, with a notable increase in the allocation towards optical modules and military communications, while reducing exposure to data centers and wireless equipment [2][15]. Recommended Stocks - Key recommended stocks include: - Tianfu Communication (300394 CH) with a target price of 119.12 and a "Buy" rating - Ruijie Network (301165 CH) with a target price of 88.70 and a "Buy" rating - China Mobile (600941 CH) with a target price of 126.40 and a "Buy" rating - China Telecom (601728 CH) with a target price of 9.13 and a "Buy" rating - China Unicom (600050 CH) with a target price of 7.62 and an "Overweight" rating [5][61]. Key Stock Performance - The top five stocks with increased fund holdings in Q2 2025 include: - Xinyi Technology (300502 SZ) with a total market value increase of 191.65 billion - Zhongji Xuchuang (300308 SZ) with an increase of 182.70 billion - Tianfu Communication (300394 SZ) with an increase of 29.69 billion - Yuanjie Technology (688498 SH) with an increase of 16.90 billion - Haige Communication (002465 SZ) with an increase of 11.01 billion [25][26].