Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Insights - The company, Guangxun Technology, is a leading domestic optical communication enterprise with a vertical integration capability from chip to subsystem, benefiting from the growth of AI computing power in China [1][14] - The demand for high-speed optical modules is surging due to the increasing investment in AI infrastructure by global cloud service providers (CSPs) [2] - The company has a strong market position in the domestic market and is actively expanding into overseas markets, with a significant increase in net profit and revenue expected in the coming years [3][4] Summary by Sections Company Overview - Guangxun Technology has over 50 years of experience in the optical communication field, achieving vertical integration of optical devices through both organic growth and acquisitions [14][15] - The company has a diverse product line that includes optical transceivers, active optical cables, optical amplifiers, and subsystems, widely used in backbone networks, metropolitan networks, access networks, and data centers [19][24] Financial Performance - The company reported a net profit of 347 million yuan for Q3 2025, a year-on-year increase of 35.42% and a quarter-on-quarter increase of 56.00%, marking a historical high [1] - Revenue for 2025 is projected to reach 116.81 billion yuan, with net profits expected to be 10.60 billion yuan, reflecting a significant growth trajectory [3][4] Market Trends - The global AI computing power market is experiencing high demand, with CSPs expected to increase their capital expenditures significantly, which will drive the demand for optical modules [2][49] - The "East Data West Computing" initiative and the development of intelligent computing centers are expected to further boost the demand for transmission networks [2] Technology and Innovation - The company has developed its own optical chips and is expanding production capacity, with plans to raise 3.5 billion yuan for the development of high-speed optical transmission products [3][26] - Guangxun Technology is actively investing in new technologies such as CPO/OCS to lead the upgrade of optical interconnection technology [3][24] Competitive Position - The company ranks fourth globally in the optical device industry and has a leading market share in transmission networks, access networks, and data communication [1][2] - Guangxun Technology's products are increasingly being adopted in both domestic and international markets, with overseas revenue accounting for approximately 25% as of mid-2025 [26][29]

Group 1 - The A-share market showed mixed performance with the Shanghai Composite Index rising by 0.3%, aiming for a nine-day winning streak, and the total market turnover exceeding 1.4 trillion yuan in half a day [1] - Active sectors included chemical fibers, PEEK materials, servers, and CPO, while lithium battery electrolytes, batteries, and dairy sectors experienced adjustments [1] - The ChiNext Index decreased by 0.3%, while the STAR Market 50 Index increased by 0.9%, and the Hang Seng China Enterprises Index rose by 0.8% [1] Group 2 - The ChiNext ETF tracks the ChiNext Index, which consists of 100 stocks with high market capitalization and liquidity, with a significant proportion in strategic emerging industries, particularly in equipment, communication, and electronics, accounting for nearly 60% [3] - The STAR Market 50 ETF tracks the STAR Market 50 Index, composed of 50 stocks with high market capitalization and liquidity, featuring a significant focus on technology leaders, with semiconductors making up over 65% and combined with medical devices and software development, accounting for nearly 80% [3] Group 3 - The Hang Seng China Enterprises Index serves as a broad-based index for the Hong Kong market, reflecting the performance of major Chinese enterprises listed in Hong Kong [3]

Market Overview - The three major indices showed mixed performance in the morning session, with the Shanghai Composite Index up by 0.31%, the Shenzhen Component Index up by 0.03%, and the ChiNext Index down by 0.32% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets reached 1.4078 trillion yuan, a decrease of 57.8 billion yuan compared to the previous day [1] - Over 3,400 stocks in the market experienced declines [1] Sector Performance - The top-performing sectors included carbon fiber, diversified finance, brain-computer interfaces, non-ferrous metals, CPO, wind power equipment, commercial aerospace, and humanoid robots [1] - The sectors that faced the most significant declines were food and beverage, retail, batteries, chemicals, and influenza [1] Notable Stocks - In the carbon fiber sector, Jilin Chemical Fiber reached the daily limit, with Jilin Carbon Valley, Zhongfu Shenying, and Nanjing Julong also showing significant gains [1] - The commercial aerospace sector continued its strong performance, with Shenjian Co. achieving eight consecutive trading limits, Daye Co. four consecutive limits, and Tailong Co. three consecutive limits [1] - Humanoid robot concept stocks saw a surge, with Haoshi Electromechanical, Wuzhou New Spring, and Siling Zhichui leading the gains [1] Underperforming Stocks - The food and beverage and retail sectors collectively declined, with Miaokelan Duo, Baida Group, and Dongbai Group hitting the daily limit down, while Huangshi Group, Nanjiao Food, and Western Pastoral also fell [1] - The battery supply chain underperformed, with XWANDA dropping over 10%, and Haike Xinyuan, Shida Shenghua, and Huasheng Lithium also experiencing declines [1]

A股午评：沪指涨0.31%，商业航天产业链延续强势 南方财经12月29日电，A股三大指数早盘集体涨跌不一，截至午盘，沪指涨0.31%，深成指涨0.03%，创 业板指跌0.32%，北证50指数涨0.11%，沪深京三市半日成交额14078亿元，较上日缩量578亿元。全市 场超3400只个股下跌。板块题材上，碳纤维、多元金融、脑机接口、有色金属、CPO、风电设备、商业 航天、人形机器人板块涨幅居前；食品饮料、零售、电池、化工、流感板块跌幅居前。盘面上，碳纤维 板块早盘走高，吉林化纤涨停，吉林碳谷、中复神鹰、南京聚隆涨幅居前。商业航天板块延续强势，神 剑股份8连板，大业股份4连板，泰尔股份3连板，苏州高新、中超控股、航天发展2连板。人形机器人概 念股盘中拉升，昊志机电、五洲新春、斯菱智驱领涨。此外，CPO、有色金属、华为昇腾等多个板块盘 中轮动。另一方面，食品饮料、零售等大消费板块集体走低，妙可蓝多、百大集团、东百集团盘中跌 停，皇氏集团、南侨食品、西部牧业跟跌。电池产业链同样表现落后，欣旺达盘中跌超10%，海科新 源、石大胜华、华盛锂电纷纷下挫。 相关股票： 石大胜华神剑股份昊志机电海科新源中超控股南侨食品妙可蓝多 ...

Market Performance - The A-share market experienced a nine-day rally, with the Shanghai Composite Index rising by 0.31% and the Shenzhen Component Index increasing by 0.03% [1] - The ChiNext Index fell by 0.32%, while the North China 50 Index rose by 0.11% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets reached 1.4078 trillion yuan, a decrease of 57.8 billion yuan compared to the previous day [1] - Over 3,400 stocks in the market declined [1] Sector Performance - Leading sectors included carbon fiber, diversified finance, brain-computer interfaces, non-ferrous metals, CPO, wind power equipment, commercial aerospace, and humanoid robots [1] - Underperforming sectors were food and beverage, retail, batteries, chemicals, and influenza [1] ETF Performance - The non-ferrous metal sector saw gains, with the Dachen Fund Non-Ferrous Metal ETF rising by 2.9% [1] - The oil and gas sector performed well, with the Penghua Fund Oil and Gas ETF and the Jingshun Great Wall Fund Oil and Gas ETF increasing by 2% and 1.92%, respectively [1] - The AI sector showed signs of recovery, with the Kexin AI ETF and the Kexin Artificial Intelligence ETF rising by 2% [1] - The commercial aerospace sector continued its upward trend, with the Satellite ETF from Yifangda increasing by 1.7% [1] Declining ETFs - High-premium Hong Kong stock ETFs saw significant declines, with the Hang Seng ETF for Hong Kong Stock Connect hitting the limit down and the Hong Kong Stock Connect 50 ETF dropping by 7% [1] - The latest premium/discount rates for these ETFs were 5% and 0.27%, respectively [1] - The Hong Kong innovative drug sector declined, with the Hang Seng Innovative Drug ETF falling by 2% and the Hong Kong Stock Connect Innovative Drug ETF decreasing by 1.7% [1] - Power stocks experienced a pullback, with the Green Power ETF and Power ETF both declining by 1.6% [1]

Investment Rating - The report maintains an "Outperform" rating for the communication industry, consistent with the previous rating [5]. Core Insights - Marvell Technology, Inc. has launched the "Golden Cable" initiative to accelerate and expand the Active Electrical Cable (AEC) ecosystem, facilitating faster time-to-market for large-scale AI deployments. This initiative provides leading software, validated reference designs, and comprehensive support in an open model [2][24]. - LightCounting forecasts that the CPO market will reach $10 billion by 2030, with significant contributions from companies like Broadcom and NVIDIA, who are expected to launch integrated CPO products by 2026. Marvell will also leverage its acquisition of Celestial AI technology to introduce similar products, with shipments starting in 2027 [2][31]. - USI plans to establish a production capacity of over 1 million units of 800G and 1.6T silicon photonic modules in Vietnam, focusing on data center-related businesses and accelerating product and capacity development [3][36]. Summary by Sections Market Overview - The communication index rose by 4.07% during the week of December 22-28, 2025, outperforming other major indices [14]. - Among the communication sub-sectors, communication cables and accessories saw the highest increase at 6.52%, followed by other communication equipment (5.90%) and communication terminals and accessories (5.38%) [17]. Industry Dynamics - Marvell's "Golden Cable" initiative aims to support the growing demand for AEC in AI data centers, with market size projected to grow from $644 million in 2025 to $1.4 billion by 2029 [24][25]. - LightCounting's report indicates that the CPO market is gaining traction, with expected growth driven by advancements in AI and networking technologies [29][30]. - USI's investment in Vietnam is part of a broader strategy to meet the increasing demand for optical modules in North America, with plans to expand production capacity significantly [36][37].

Group 1 - The market showed a continuous rebound this week, with all three major indices recording five consecutive days of gains. The CSI 500 index led with a weekly increase of 4.03%, while the SSE 50 and CSI 300 indices lagged behind [2][30]. - In terms of sector performance, industries such as non-ferrous metals, industrial trade, national defense, and chemicals saw significant gains, while utilities, media and entertainment, transportation, and pharmaceuticals underperformed [4][30]. - The thematic sectors that performed well included fiberglass, lithium battery electrolytes, Hainan Free Trade Port, photovoltaics, and batteries [5][30]. Group 2 - In November, the manufacturing PMI was reported at 49.2%, an increase of 0.2 percentage points from the previous month, indicating an improvement in economic conditions. Conversely, the non-manufacturing business activity index fell to 49.5%, down 0.6 percentage points [8]. - Consumer prices in November rose by 0.7% year-on-year, while the average for January to November remained flat compared to the previous year. Month-on-month, consumer prices decreased by 0.1% [13]. - In November, the export value from China increased by 5.9% year-on-year, while imports grew by 1.9%. The trade surplus reached $111.68 billion, up from $90.07 billion in the previous period [19]. - New social financing in November amounted to 2.49 trillion yuan, an increase of 159.7 billion yuan year-on-year, with new deposits totaling 1.41 trillion yuan [19]. - The industrial added value in November saw a real growth of 4.8% year-on-year, with a month-on-month increase of 0.44%. For the first eleven months, the growth was 6.0% year-on-year [21]. - Fixed asset investment from January to November totaled 4440.35 billion yuan, a decrease of 2.6% year-on-year, with real estate development investment down by 15.9% [24][25]. - Retail sales of consumer goods in November reached 43.898 billion yuan, reflecting a year-on-year growth of 1.3%, while the total for January to November grew by 4.0% [27][29]. Group 3 - The market outlook remains optimistic, with expectations for a spring rally in the coming year due to policy support and major projects being prioritized. The focus will be on domestic demand policies as a key driver for market performance [30][33]. - Despite current market fluctuations, there is a belief that the market will strengthen gradually, with strategies focusing on upcoming earnings disclosures and themes such as domestic demand, anti-involution, new momentum, and technological growth [33].

Market Performance - The Shanghai Composite Index rose by 0.1%, achieving an eight-day winning streak and approaching the 4000-point mark, with a total trading volume of 2.18 trillion yuan, marking a new monthly high [1] Sector Highlights - The non-ferrous metals sector experienced a significant surge, particularly in the upstream materials for lithium batteries, which saw a wave of stocks hitting the daily limit [1] - The commercial aerospace concept remained active, while the AI industry chain collectively retreated, with photolithography machines, OCS, and CPO concepts experiencing widespread declines [1] ETF Movements - Mini-sized Hong Kong stock ETFs continued to rise, with the GF Fund's Hang Seng ETF through Stock Connect increasing by 7.18%, and the latest premium discount rate standing at 16.96% [1] - The non-ferrous sector ETFs, including the Guotai Fund's Mining ETF, the Non-ferrous Mining ETF from China Merchants, and the Southern Fund's Non-ferrous Metals ETF, rose by 4.25%, 4.16%, and 3.95% respectively [1] - The satellite internet sector saw afternoon gains, with the China Merchants Satellite Industry ETF, E Fund's Satellite ETF, and the Fuguo Fund's Satellite ETF increasing by 3.64%, 3.59%, and 3.49% respectively [1] - The Hong Kong Stock Connect 100 ETF retracted from high premiums, declining by 2% [1] - The semiconductor sector faced declines, with semiconductor equipment ETFs falling by 1.59% and 1.45% respectively, while the CPO sector also retreated, with the communication ETF down by 1.15% [1]

Market Overview - A-shares recorded a total trading volume of 2.16 trillion yuan, marking a new monthly high [1][6] - The three major indices closed slightly higher, with the Shanghai Composite Index up 0.1%, Shenzhen Component Index up 0.54%, and ChiNext Index up 0.14% [1] Sector Performance - The non-ferrous metals sector experienced a significant surge, with lithium battery upstream materials seeing a wave of limit-up stocks [2][4] - The commercial aerospace concept remained active, while the AI industry chain collectively declined, with sectors like photolithography machines and OCS facing widespread losses [2] Notable Stocks - Several stocks in the Hainan Free Trade Zone saw limit-up performances, including Hainan Mining, Hainan Development, and Hainan Airlines [2] - Key gainers included Intercontinental Oil & Gas (+10.11%), Hainan Mining (+10.02%), and Hainan Development (+10.01%) [3] Capital Flow - Main capital inflows were observed in non-ferrous metals, photovoltaic equipment, and automotive sectors, while semiconductor, aerospace, and consumer electronics sectors saw net outflows [8] - Notable net inflows included Sunshine Power (+2.322 billion yuan), Aerospace Development (+2.048 billion yuan), and BYD (+1.473 billion yuan) [8] Institutional Insights - Guojin Securities indicated that the spring market has begun, emphasizing the importance of AI chain rotation opportunities [9] - Everbright Securities noted that the commercial aerospace theme continues to expand its profit-making effect, potentially attracting more capital and pushing the Shanghai Composite Index towards 4000 points before the year-end [10]

Market Performance - On December 26, the Shanghai Composite Index experienced a slight decline of 0.19%, while the ChiNext Index fell by 0.15%. In contrast, the Shenzhen Component Index rose by 0.17% [1] - The total market turnover reached 1.4648 trillion yuan, an increase of 252.9 billion yuan compared to the previous day [1] Sector Performance - The AI industry chain saw a collective pullback, with CPO, liquid cooling, and high-speed copper concepts leading the declines. Technology themes such as robotics and photolithography also underwent a general correction [1] - Conversely, the lithium battery industry chain surged, with the non-ferrous metals sector accelerating. Companies like Luoyang Molybdenum and Zijin Mining reached historical highs in stock prices [1] - The commercial aerospace concept began to show signs of differentiation in performance [1] ETF Performance - Mini-sized Hong Kong stock ETFs continued to rise, with GF Fund's Hang Seng ETF and Cathay Fund's Hong Kong Stock Connect 50 ETF increasing by 7.11% and 2.84%, respectively. Their latest premium/discount rates are 16.96% and 12.35% [1] - The non-ferrous and photovoltaic sectors strengthened, with Southern Fund's Non-Ferrous Metals ETF, Huatai-PineBridge Fund's Non-Ferrous 50 ETF, and Yinhua Fund's Non-Ferrous Metals ETF all rising by 3%. Additionally, Harvest Fund's New Energy ETF and Bosera Fund's New Energy Theme ETF increased by 2% [1] - The semiconductor and CPO sectors declined, with chip equipment ETFs, semiconductor equipment ETFs, and semiconductor device ETFs dropping by 1.6%. Communication ETFs and 5G communication ETFs fell by 1.6% and 1.43%, respectively [1]