Changjiang Securities·2025-09-11 14:45Investment Rating - The report maintains a "Positive" investment rating for the communication industry [12] Core Insights - The communication industry continues to show high prosperity in H1 2025, driven by the computing power industry chain. Operators are shifting capital expenditures towards intelligent computing, leading to increased profitability and market share for leading companies [2][8] - The overall revenue of the communication industry (excluding the three major operators) reached CNY 434.35 billion in H1 2025, a year-on-year increase of 15.94%, with net profit attributable to shareholders at CNY 33.55 billion, up 15.67% [8][21] - The AI and computing power infrastructure construction, AI application terminal modules, and satellite internet are advancing, resulting in accelerated revenue and performance growth for the industry [21] Summary by Sections Industry Overview - The communication industry achieved a revenue of CNY 4,343.53 billion in H1 2025, a 15.94% increase year-on-year, and a net profit of CNY 335.48 billion, up 15.67% [21] - In Q2 2025, the industry generated CNY 2,426.68 billion in revenue, reflecting a 19.36% year-on-year growth, with net profit reaching CNY 191.65 billion, a 15.16% increase [21] Computing Power Industry Chain - Operators are becoming key players in the new round of computing power construction, with capital expenditures shifting from traditional networks to intelligent computing infrastructure [9] - The demand for 800G optical modules is rapidly increasing, and the industry maintains a high prosperity level, with core manufacturers increasing their market share [9] IoT and Satellite Communication - The IoT sector is experiencing steady revenue growth driven by emerging applications such as AI and robotics, despite profit growth being relatively weak due to cost inputs and international trade conditions [10] - The Beidou navigation and satellite communication sectors are seeing accelerated penetration into civilian markets, with significant growth potential in high-precision applications [10] Investment Recommendations - The report recommends focusing on key companies within the sector, including China Mobile, China Telecom, and China Unicom for operators; Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication for optical modules; and various companies in the AI application and satellite sectors [11]