Investment Rating - Industry rating: Outperform the market (maintained rating) [5] Core Viewpoints - The construction sector is expected to benefit from more proactive fiscal policies and moderate monetary policies, with an emphasis on accelerating the issuance and utilization of local government special bonds and ultra-long-term special treasury bonds [2][13] - The construction index rose by 0.56% this week, outperforming the Shanghai and Shenzhen 300 index by 0.16 percentage points, with notable gains in small and mid-cap stocks related to transformation [1][25] - The first quarter of 2025 saw significant growth in new orders for major construction companies, indicating a recovery in traditional infrastructure sectors [20][24] Summary by Sections Fiscal Policy and Economic Outlook - The April 25 Politburo meeting highlighted the need for more proactive macroeconomic policies to stabilize employment, businesses, and market expectations, with a focus on increasing fiscal spending and issuing special bonds [2][13] - The meeting's optimistic stance on policies suggests potential improvements in physical construction volumes, particularly in infrastructure and housing sectors [2][19] Market Performance - The construction index's performance this week included significant gains in construction decoration, design services, and landscaping, with leading stocks such as Hanjia Design (+31%) and Sanwei Chemical (+22%) [1][25][30] - The construction sector's performance historically shows that it tends to underperform the Shanghai and Shenzhen 300 index in the month following the Politburo meetings, but this year may differ due to positive policy signals [2][19] Investment Recommendations - Focus on infrastructure-related investment opportunities, particularly in high-growth regions such as Sichuan, Xinjiang, and Tibet, as well as cyclical sectors [1][30] - Recommendations include traditional construction blue-chip stocks and emerging business directions such as data centers and cleanroom technologies, with specific companies highlighted for their growth potential [31][32][33]

Investment Rating - Maintain "Buy" rating for the industry [4] Core Viewpoints - The market has underestimated the explosive potential of innovative connection solutions in optical communication, particularly with the increasing demand for MPO and shuffle box in complex interconnections [1][21] - The transition from 400G to higher speeds like 800G and 1.6T in optical modules is becoming a consensus, creating new opportunities for passive connection devices [3][24] - The report emphasizes the importance of high-density, high-speed, and low-power solutions in the context of growing computing clusters, which will drive innovation in passive products [24] Summary by Sections Investment Strategy - Focus on the undervalued high-speed optical interconnect sector, recommending "Two Big and Four Small" companies: Tianfu Communication, Sanhuan Group, and smaller firms like Taicheng Light, Shijia Photon, Bochuang Technology, and Zhishang Technology [7][13][24] Market Review - The communication sector has seen an increase, with the blockchain segment performing the best [18][19] - The report notes significant stock movements, with Guomai Technology leading the sector with a 46.586% increase [20] Weekly Topic - The upcoming GTC and OFC events are expected to highlight new technologies in optical communication, with a focus on the demand for more compact and efficient solutions [1][21] Key Recommendations - The report suggests monitoring developments in optical modules and passive connection devices, as these areas are poised for growth due to technological advancements and market demand [24][26]