Core Viewpoint - The report from Guojin Securities highlights the emphasis on quantum technology and nuclear fusion energy as new economic growth points in the 14th Five-Year Plan proposed by the Central Committee of the Communist Party of China [1] Group 1: Industry Focus - The 14th Five-Year Plan aims to promote industries such as quantum technology, biomanufacturing, hydrogen energy, nuclear fusion energy, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications as new economic growth drivers [1] - Quantum computing and controllable nuclear fusion are expected to receive top-level policy support and funding, indicating a positive upward trend for these industries [1]

Report Industry Investment Rating - Not provided Core Viewpoints of the Report - In the morning session, driven by the smooth progress of China - US economic and trade negotiations, the major indices of the two markets opened higher, with the Shanghai Composite Index approaching 4,000 points. The trading volume increased as the market rose. High - growth industries and the stock market are expected to perform well, and the stability of the stock market is crucial for boosting consumer confidence and promoting economic internal circulation [1][2][3] - High - growth industries such as quantum technology, biomanufacturing, and AI are expected to become new economic growth points in the future, with the potential to double the scale of China's high - tech industry in the next 10 years [3] - Goldman Sachs predicts that Chinese stocks will show a more sustained upward trend in the future, with the MSCI China Index expected to rise by about 30% by the end of 2027 [2] Summary According to the Directory Market Review - The trading volume of the two markets was 2.34 trillion yuan. The CSI 300 Index closed at 4,716 points, up 55 points or 1.18%; the SSE 50 Index closed at 3,069 points, up 23 points or 0.78%; the CSI 500 Index closed at 7,379 points, up 120 points or 1.67%; the CSI 1000 Index closed at 7,495 points, up 76 points or 1.03% [1] - Among industry and theme ETFs, the top gainers were communication equipment ETF, semiconductor equipment ETF, etc., while the top losers were game ETF, real estate ETF, etc. Among the sector indices of the two markets, the top gainers were components, forestry, etc., and the top losers were games, wind power equipment, etc. [1] - The CSI 500, CSI 1000, CSI 300, and SSE 50 index futures saw net inflows of 4.2 billion, 3.8 billion, 3.2 billion, and 700 million yuan respectively in the settled funds [1] Important Information - China - US economic and trade teams had in - depth and constructive exchanges on issues such as 301 measures on the maritime logistics and shipbuilding industries, and reached a basic consensus on resolving concerns [1] - From January to September, the total profit of industrial enterprises above designated size was 5.3732 trillion yuan, a year - on - year increase of 3.2%. In September, the profit of industrial enterprises above designated size increased by 21.6% year - on - year [1] - Global investors' stock allocations are continuously rising, approaching the historical high of the 1990s, driven by factors such as excess global liquidity and technological breakthroughs in AI [1] - Tencent's R & D shows that AI has been deeply integrated into its R & D system, with over 90% of engineers using AI programming assistants and 50% of new code generated by AI, boosting overall R & D efficiency by over 20% [1] - Blue Arrow Aerospace's Zhuque - 3 completed pre - flight fueling and static ignition tests, and is scheduled for an orbital launch in November, aiming to be China's first recyclable launch vehicle [1] - OpenAI completed a $15 trillion chip supply deal, showing high execution efficiency and the urgency of the AI computing power race [2] - The AI data center boom is squeezing the US manufacturing industry, with a 18% increase in data center construction spending and a 2.5% contraction in factory construction this year [2] - Google's cloud business won a major order from AI unicorn Anthropic, posing pressure on its competitor Amazon [2] - After the US sanctions on Russian oil companies, Indian refineries are considering reducing Russian crude oil purchases [2] - A Japanese startup launched the world's first yen - linked stablecoin, marking a change in Japan's financial infrastructure [2] - US quantum computing companies achieved technological breakthroughs, and the industry predicts that the "quantum advantage" may be reached in 3 - 5 years, posing a threat to security [2] - The Fed is expected to cut interest rates for the second consecutive time this week, but extending the easing cycle may face opposition from some officials due to inflation concerns [2] Market Logic - Driven by the smooth progress of China - US negotiations, the major indices of the two markets opened higher. In September, the profit of industrial enterprises above designated size increased significantly year - on - year [1][2] - The "15th Five - Year Plan" proposes to strengthen original innovation and key core technology research in key areas such as integrated circuits and industrial mother machines [2] - As the stock market recovers, investor confidence is increasing, driving up residents' property income, highlighting the importance of stabilizing the stock market [2] - Goldman Sachs predicts that Chinese stocks will have a more sustained upward trend in the future [2] Market Outlook - High - growth industries such as quantum technology and AI are expected to become new economic growth points, with the potential to double the scale of China's high - tech industry in the next 10 years [3] - Chinese stocks are attracting more domestic and foreign investors. Stable stock market can boost consumption and strengthen economic internal circulation [3] - Before the China - US summit on October 30, the uncertainty of the details of the agreement may cause market fluctuations. The Shanghai Composite Index may experience sharp fluctuations around 4,000 points [3] Trading Strategies - For futures index trading, before the China - US summit on October 30, wait for a clearer situation at the end of the month. Long positions in index futures should be mainly based on the CSI 300 Index and the SSE 50 Index [3] - For index option trading, wait and see as there may be sharp fluctuations around the 4,000 - point level of the Shanghai Composite Index [3]

Investment Rating - The report maintains a "Positive" investment rating for the industry [9] Core Insights - The computer sector rebounded last week, rising by 3.83%, ranking 7th among major industries in the Yangtze River region, with a trading volume accounting for 6.37% of the total market [2][6][18] - Key focus areas include the cloud service industry, the domestic chip supply chain, particularly leading companies in domestic computing chips like Cambrian, and cloud service providers [8][64] Summary by Sections Market Performance - The overall market saw a significant increase, with the Shanghai Composite Index surpassing 3900 points, closing at 3950.31 points, marking a 2.88% rise [6][18] - The computer sector's performance was highlighted by active trading in quantum technology and aerospace-related stocks [20] Key Developments - Huawei officially launched the new HarmonyOS 6, enhancing its ecosystem and user experience [23][32] - Google's quantum AI lab introduced a new Quantum Echoes algorithm, achieving the first verifiable quantum advantage [34][39] Investment Opportunities - The report emphasizes the importance of cloud vendors and domestic computing capabilities as core components of the AI industry [8][64] - The domestic AI model industry is rapidly evolving, with companies like Alibaba and DeepSeek leading advancements in model performance and cost reduction [57][64] - The demand for computing power is expected to surge, driven by the rapid growth of AI applications and the need for scalable infrastructure [60][63] Policy and Innovation - The 20th Central Committee of the Communist Party of China emphasized the need for high-level technological self-reliance and innovation, which is expected to drive new productive forces [43][45] - The report suggests that emerging industries such as quantum technology, low-altitude economy, and brain-computer interfaces will benefit from supportive policies and have significant growth potential [52][64]

Group 1 - The first mass production of a four-channel ultra-low noise semiconductor single-photon detector in China marks a leading position in single-photon detection technology [1] - Future economic growth in quantum technology may arise from three paths: manufacturing of quantum devices, upgrading industries like medicine and finance, and the emergence of new business models such as quantum AI and quantum IoT [1] - The Ministry of Industry and Information Technology has initiated 17 key tasks to enhance the development of quantum technology across various sectors, including healthcare, transportation, energy, and finance [1] Group 2 - Quantum precision measurement instrument developer Guoyi Quantum Technology has completed a strategic financing round of 131 million yuan, aimed at upgrading research and design capabilities for quantum computing and related equipment [2] - China Telecom's quantum research team achieved significant progress in quantum communication, successfully conducting a real-world experiment with over 80 kilometers of transmission at speeds exceeding 10 Tb/s [2] - The development of quantum technology in China is characterized by a combination of policy guidance and market-driven innovation [2] Group 3 - Commercial applications of quantum technology have made substantial progress in finance and healthcare, demonstrating the feasibility of industry implementation [3] - Beijing Boson Quantum Technology will provide top-tier quantum optimization algorithms and computing power services for China Merchants Bank's "Libra AI" quantum computing project [3] - The quantum molecular docking platform developed by Benyuan Quantum Computing and WuXi AppTec significantly reduces the drug screening cycle for Alzheimer's disease from five years to eight months, cutting costs by 60% [3] - The quantum technology market in China is projected to reach $9.758 billion by 2029, with a compound annual growth rate of 37.45% from 2024 to 2029 [3]

Group 1 - The article discusses the "14th Five-Year Plan" which emphasizes the development of hydrogen energy and nuclear fusion as new economic growth points, alongside other advanced technologies like quantum science and bio-manufacturing [4] - The automotive industry is undergoing a transformation driven by technological advancements such as intelligent driving and humanoid robots, which aligns with the policy focus on "industrial technology + boosting domestic demand" [4] Group 2 - Ziyuan Food reported a revenue of 2.514 billion yuan for the first three quarters of 2025, a year-on-year decrease of 6.43%, with a net profit of 194 million yuan, down 44.37% [4] - Jinzhai Food achieved a revenue of 1.808 billion yuan for the first three quarters of 2025, a year-on-year increase of 2.05%, but its net profit decreased by 19.51% to 173 million yuan [5] - Dongpeng Beverage's revenue for the first three quarters of 2025 reached 16.844 billion yuan, a year-on-year increase of 34.13%, with a net profit of 3.761 billion yuan, up 38.91% [7] - Zhongju Gaoxin reported a revenue of 3.156 billion yuan for the first three quarters of 2025, a year-on-year decrease of 20.01%, with a net profit of 380 million yuan, down 34.07% [8] - Sanofi Biotech's revenue for the first three quarters of 2025 was 3.453 billion yuan, an increase of 8.52%, but its net profit fell by 17.36% to 211 million yuan [9]

Core Insights - China's first mass production of a four-channel ultra-low noise semiconductor single-photon detector marks a leading position in single-photon detection technology [1] - The future of quantum technology in China is expected to contribute to economic growth through three pathways: manufacturing quantum devices, empowering industries like medicine and finance, and fostering new business models such as quantum AI and quantum IoT [1] - The release of policy incentives is accelerating industry development, with the Ministry of Industry and Information Technology planning 17 key tasks focused on quantum computing, communication, and precision measurement [1] Industry Developments - The Yangtze River Delta region is developing a "superconducting quantum computing + cloud services" ecosystem, while the Guangdong-Hong Kong-Macau Greater Bay Area is promoting "quantum + AI" applications centered around Huawei's quantum cloud platform [1] - Quantum precision measurement instrument manufacturer Guoyi Quantum Technology has completed a strategic financing of 131 million yuan, aimed at upgrading research and design capabilities for quantum computing and magnetic resonance equipment [2] - China Telecom's quantum research team achieved significant progress in quantum communication, successfully conducting a real-world experiment with over 80 kilometers of transmission at speeds exceeding 10 Tb/s [2] Commercial Applications - The commercialization of quantum technology has made substantial progress in finance and healthcare, demonstrating the feasibility of industry applications [3] - Beijing Boson Quantum Technology is providing quantum computing services for China Merchants Bank's "Tianchen AI" project, addressing complex computational challenges in investment portfolio optimization and risk control [3] - Huaxia Bank is developing a "quantum financial cloud platform" that integrates various technologies to create core algorithms for applications in intelligent risk control [3] - A collaboration between Benyuan Quantum Computing and WuXi AppTec has reduced the drug screening cycle for Alzheimer's disease from five years to eight months, cutting costs by 60% [3] - The quantum technology market in China is projected to reach $9.758 billion by 2029, with a compound annual growth rate of 37.45% from 2024 to 2029 [3]

Core Insights - The 20th Central Committee's Fourth Plenary Session is a significant mobilization for advancing Chinese-style modernization, coinciding with the conclusion of the 14th Five-Year Plan and the initiation of the 15th Five-Year Plan [1] Group 1: Economic Development and Planning - The 15th Five-Year Plan period is crucial for solidifying the foundation of socialist modernization and fully unleashing potential, with a focus on transforming new advantages into high-quality development [2][3] - The plan emphasizes building a modern industrial system and strengthening the foundation of the real economy, responding to profound changes in the international environment [2] - The 15th Five-Year Plan is seen as a key phase for achieving the long-term goal of basic socialist modernization by 2035, requiring systematic planning and implementation [4] Group 2: Strategic Opportunities and Challenges - The current development environment is characterized by complex changes, with both strategic opportunities and risks, necessitating a proactive approach to adapt and respond [2][3] - The importance of maintaining strategic determination and enhancing economic, technological, and comprehensive national strength is highlighted as essential for winning strategic competition [3] Group 3: Corporate Strategies and Opportunities - Enterprises are encouraged to align their development directions with the 15th Five-Year Plan, focusing on key tasks and exploring international markets [5] - Companies should leverage policy benefits such as financial subsidies and tax incentives to support their growth [5] - Cultural enterprises are presented with opportunities to enhance cultural exchange and storytelling, contributing to the construction of a culturally strong nation [5] Group 4: Market Dynamics - The establishment of a unified national market is crucial for facilitating domestic circulation and transforming the domestic market from large to strong [3] - Expanding domestic demand is emphasized as a strategic foundation, with a focus on improving public service spending and increasing disposable income [3]

Robotics - Lingyi Zhi Zao has recently received over a hundred orders for complete machine assembly from leading clients in the robotics industry [1] - Greebo has entered the implementation phase of its collaboration with Zhiyuan Robotics on commercial cleaning robots [1] Quantum Technology - Guangdian Measurement is increasing discussions with industry professionals to establish a quantum testing research team [2] - New Jingang and Yachuang Electronics have not engaged in quantum technology or quantum computing-related products [2] Battery Technology - BYD's "Haohan" features the world's largest 2710Ah energy storage blade battery, improving performance by over 300% compared to conventional energy storage batteries [2] - Tongxing Technology's sodium-ion battery materials are suitable for start-stop power sources and UPS power supply needs [2] Semiconductor Materials - Quartz Co. has received certification for its self-produced high-purity quartz sand from several major international semiconductor equipment manufacturers [3] High-Temperature Alloys - Zhongzhou Special Materials' high-temperature corrosion-resistant alloy products are applicable in oil and gas drilling and deep-earth economic fields [3] Rare Earth Technology - Jiuwu High-Tech possesses technological reserves and patents in rare earth extraction and separation, as well as rare earth wastewater treatment [3] AI Technology - China Great Wall's AI server power supply has officially entered production [3] Phosphor Materials - Ruifeng High Materials' subsidiary has begun the debugging phase for its ton-level black phosphorus pilot plant equipment [3]

Market Overview - The market experienced a strong upward trend with the Shanghai Composite Index rising over 1%, reaching a ten-year high and approaching the 4000-point mark. The total trading volume in the Shanghai and Shenzhen markets was 2.34 trillion, an increase of 365.9 billion from the previous trading day [1][9] - The closing figures showed the Shanghai Composite Index up 1.18%, the Shenzhen Component Index up 1.51%, and the ChiNext Index up 1.98% [1] Stock Performance - A total of 50 stocks hit the daily limit up, while 29 stocks faced limit down, resulting in a limit-up rate of 63% [1] - Notable stocks included Yingxin Development with six consecutive limit-ups, Shilong Industrial with five, and Shikong Technology with four [1][3] Sector Analysis - The storage chip, CPO, and controllable nuclear fusion sectors saw significant gains, while gaming and wind power equipment sectors experienced declines [1] - The storage chip sector continued its strong performance, with several companies like Jiangbolong and Zhaoyi Innovation reaching historical highs [6] - The controllable nuclear fusion sector gained attention following announcements about China's "artificial sun," with stocks like Dongfang Tantalum and Antai Technology achieving limit-ups [7] Hot Stocks and Trends - Yingxin Development's rise was attributed to low price, mergers and acquisitions, and storage chip involvement [4][11] - Guoguang Chain achieved six limit-ups over 11 days, driven by retail sector performance [4][11] - The coal sector showed recovery, with Zhengzhou Coal Electricity hitting limit-up after a period of adjustment [7][8] Future Outlook - The market is expected to continue its structural trends, with a focus on technology and large financial stocks leading the way [9] - The upcoming third-quarter earnings reports may influence market dynamics, with potential profit-taking affecting short-term stock prices [5][9]

Investment Rating - The communication industry is rated as "Positive" with expectations that the industry index will outperform the market index by over 5% in the next six months [49]. Core Insights - The communication sector has shown robust growth, with a 11.56% increase from October 20 to October 24, 2025, outperforming the CSI 300 index by 8.31 percentage points [3][13]. - Year-to-date, the communication industry has risen by 70.42%, ranking second among major sectors [3][15]. - The current PE TTM for the communication sector is 25.93, which is at the 34.12 percentile, indicating a relatively low valuation level [15]. - The report highlights a significant internal performance and stock price divergence among listed companies, suggesting a cautious yet optimistic outlook for operators with sustained profit growth and enhanced network value [6][47]. Summary by Sections Market Review - The communication sector has outperformed the CSI 300 index, with 101 out of 120 listed companies experiencing stock price increases during the review period [14][15]. - The top three gainers were Zhongji Xuchuang, Online Offline, and Shijia Photon, while the top three decliners were Dongxin Peace, Zhongguang Lightning Protection, and Wanma Technology [17][14]. Industry News - The report discusses the strategic focus on emerging technologies such as quantum technology, embodied intelligence, and 6G, which are expected to create significant market opportunities over the next decade [18][19]. - Major telecommunications companies like China Mobile, China Telecom, and China Unicom reported steady revenue growth, with China Mobile achieving a revenue of 794.7 billion yuan and a net profit of 115.4 billion yuan, reflecting a 4% year-on-year increase [26][28][30]. Investment Recommendations - The report suggests maintaining a cautiously optimistic stance, focusing on operators with continuous profit growth, companies benefiting from traffic growth and computing networks, and high-quality firms with strong core competitiveness [6][47].