Dongguan Securities·2025-08-08 09:51Investment Rating - The report maintains an "Overweight" rating for the communication industry, expecting the industry index to outperform the market index by more than 10% in the next six months [2][43]. Core Viewpoints - The communication industry is entering a phase of technological iteration and policy benefits, with new growth drivers from AI, quantum communication, and low-altitude economy. The recovery of cellular IoT modules from inventory adjustments and the ongoing construction of communication facilities such as base stations and data centers are expected to create new demands for devices, equipment, and service operations [3][40]. Summary by Sections 1. Industry Market Review - The communication sector index rose by 3.93% from July 25 to August 7, outperforming the CSI 300 index by 4.75 percentage points, ranking 4th among 31 first-level industries. The sector has seen a cumulative increase of 21.63% this year, surpassing the CSI 300 index by 17.06 percentage points [4][11]. 2. Industry News - The report highlights several key developments: 1. The release of the new GPT-5 series model by OpenAI, which will be integrated into various Microsoft platforms [16]. 2. Omdia's forecast that global cellular IoT connections will reach 5.1 billion by 2030, driven by technologies like 5G RedCap [18]. 3. The Ministry of Industry and Information Technology's initiative to develop leading enterprises in the brain-computer interface sector [19]. 4. A strategic cooperation agreement between China Mobile and Tencent [20]. 5. Shanghai's goal to achieve a computing power center scale of over 100 EFLOPS by the end of 2025 [21]. 3. Company Announcements - Key financial results include: 1. China Mobile reported a revenue of 543.8 billion yuan for the first half of 2025, a slight decrease of 0.5% year-on-year [24]. 2. Weisheng Information's net profit increased by 12.2% year-on-year [26]. 3. Shijia Photon reported a significant revenue growth of 121.12% year-on-year [27]. 4. Industry Data Updates - As of June 2025, the mobile phone user base reached approximately 1.81 billion, a year-on-year increase of 2.66% [28]. The internet broadband access user base was about 684 million, up 4.98% year-on-year [29]. The length of optical cable lines reached approximately 73.77 million kilometers, reflecting a year-on-year growth of 9.91% [31]. The number of 5G base stations reached 4.549 million, with a net increase of 298,000 from the end of the previous year [36]. 5. Investment Recommendations - The report suggests focusing on companies that align with the themes of "technology commercialization, policy catalysis, and performance certainty." Recommended stocks include China Telecom, FiberHome, Yangtze Optical Fibre, and Weisheng Information, each with distinct competitive advantages in the communication sector [40][41].