Guoxin Securities·2025-08-17 11:52Investment Rating - The report maintains an "Outperform" rating for the communication industry [5][66]. Core Insights - The communication industry is experiencing robust growth driven by AI infrastructure and high demand for related products, particularly in the optical communication and AI server sectors [4][11][19]. - Major domestic optical communication companies are seeing rapid revenue growth, with significant contributions from high-speed optical modules [2][29][33]. - The three major telecom operators are showing stable performance with increasing dividends, indicating a solid long-term investment opportunity [4][48][55]. Summary by Sections Industry News Tracking - Industrial Fulian reported a revenue of 360.76 billion yuan in H1 2025, a year-on-year increase of 35.58%, with net profit rising by 38.61% [11]. - Lumentum's cloud computing and networking business grew by 66.5%, with Q4 revenue reaching $480.7 million, up 55.9% year-on-year [19][20]. - AVC's revenue for H1 2025 was 52.927 billion New Taiwan dollars, a 66.48% increase, driven by strong demand for AI server cooling products [23][24]. Domestic Optical Communication Companies - Huagong Technology's revenue in H1 2025 was 7.629 billion yuan, up 44.66%, with net profit increasing by 44.87% [29][30]. - Taichung Light's revenue reached 828 million yuan in H1 2025, a 62.49% increase, with net profit growing by 118.02% [33][34]. Telecom Operators - China Mobile reported a revenue of 543.8 billion yuan, a slight decline of 0.5%, but net profit increased by 5.0% [48]. - China Telecom's revenue was 269.4 billion yuan, up 1.3%, with net profit rising by 5.5% [48][55]. - The three major operators are increasing their dividend payouts, with a total proposed mid-term dividend of approximately 74.256 billion yuan [2][55]. Market Performance - The communication sector index rose by 7.66%, outperforming the Shanghai and Shenzhen 300 index, which increased by 2.37% [3][62]. - The optical module and device sectors showed strong performance, with significant gains in stock prices [63][64]. Investment Recommendations - The report suggests focusing on AI computing infrastructure, particularly in optical communication and domestic computing sectors [4][66]. - Long-term investment in the three major telecom operators is recommended due to their stable operations and increasing dividend yields [4][66].