Dongguan Securities·2025-09-05 13:00Investment 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][48]. Core Viewpoints - The communication industry has shown stable operation in the first seven months of 2025, with telecom business revenue exceeding 1 trillion yuan, reflecting a year-on-year growth of 0.7%. The total telecom business volume, calculated at constant prices from the previous year, has increased by 8.9% [24]. - The report highlights that the communication industry is in a period of technological iteration and policy dividends, with new growth drivers from AI, quantum communication, and low-altitude economy. The demand for communication facilities such as base stations, optical cables, and data centers is expected to continue growing [24][45]. Summary by Sections 1. Communication Industry Market Review - The communication sector has seen a cumulative increase of 7.58% over the past two weeks (August 22 to September 4), outperforming the CSI 300 index by 5.78 percentage points. Year-to-date, the sector has risen by 50.22%, surpassing the CSI 300 index by 39.29 percentage points [10][14]. 2. Industry News - The Ministry of Industry and Information Technology and the State Administration for Market Regulation have issued a plan to enhance the electronic information manufacturing industry, focusing on major projects and equipment updates [16]. - Juniper Research predicts that global cellular IoT connection revenue will exceed $30 billion by 2030, a 74% increase from $18 billion in 2025, driven by rising demand for operational efficiency and automation [19]. - The global 6G wireless communication standardization work has officially begun, marking a significant step in the development of 6G technology [20]. 3. Company Announcements - ZTE Corporation reported a net profit of 5.058 billion yuan for the first half of 2025, with a revenue of 71.553 billion yuan, reflecting a year-on-year growth of 14.51% [26]. - Meige Intelligent announced a net profit increase of 151% year-on-year for the first half of 2025, with revenue of 1.886 billion yuan, up 44.50% [28]. 4. Industry Data Updates - As of July 2025, the number of mobile phone users reached approximately 1.815 billion, a year-on-year increase of 2.68% [30]. - The total number of 5G base stations reached 4.598 million, with a net increase of 348,000 from the end of the previous year, accounting for 36% of all mobile base stations [40]. 5. Communication Sector Weekly Viewpoint - The report suggests focusing on companies that align with the three main themes of "technology commercialization, policy catalysis, and performance certainty," recommending stocks such as China Mobile, China Telecom, and FiberHome [45].