- The report focuses on the investment value of the China Securities 5G Communication Theme Index, which selects stocks related to 5G infrastructure, terminal devices, and application scenarios to reflect the overall performance of 5G-related listed companies in the A-share market [3][59][61] - The index's sample selection process involves filtering stocks based on daily average market capitalization and trading volume over the past year, followed by selecting the top 50 securities related to 5G construction or applications [61] - The index's top 10 constituent stocks, as of September 8, 2025, include leading companies in the 5G industry such as New Easystone and Zhongji Xuchuang, which together account for nearly 25% of the index's weight, showcasing a "dual-core" structure [65][64] - The index's sector distribution is concentrated in communication, electronics, and computing, with a combined weight of 94.86%, highlighting its high "hard technology" purity and strong focus on 5G-related industries [65][67] - The index demonstrates a preference for large-cap stocks, with companies valued over 1 trillion RMB accounting for 68.03% of the total weight, emphasizing its "blue-chip" characteristics [68][70] - The index's valuation has rapidly recovered, with its PE and PB ratios showing significant growth, reflecting the high prosperity of the 5G construction and application sectors [75][76] - The index's earnings growth is projected to be robust, with expected revenue growth rates of 23.87%, 23.78%, and 18.46% for 2025, 2026, and 2027, respectively, and net profit growth rates of 40.02%, 30.44%, and 21.22% for the same years [77][78] - The Hua Xia China Securities 5G Communication Theme ETF (5GETF), which tracks this index, aims to minimize tracking deviation and tracking error, and is managed by an experienced fund manager with over 16 years in the industry [79][80]

Technology & Development - The company aims to provide full 5G service from space to cell phones [1] - Achieving this goal requires launching larger, more powerful satellites [1] - The satellite launch depends on a rocket that is still under development [1] Spectrum Acquisition - The company is acquiring spectrum to enable its 5G service [1]

Market Overview - U.S. stocks experienced a strong start to the week, with the S&P 500 gaining 0.5% and setting a new closing record, marking its 25th record this year, while the Nasdaq also reached all-time highs [1] - Market support was bolstered by expectations of potential Federal Reserve rate cuts, despite ongoing diplomatic challenges [2] Sector Highlights - Tesla's stock rose by 3.6% following Elon Musk's announcement of a $1 billion share buyback, which enhanced investor confidence [3] - Oracle and Seagate Technology saw gains due to momentum in data centers and increasing demand for cloud infrastructure [3] - Gold prices continued to rise, climbing another 1% to a new high, achieving a 40% gain year-to-date, making precious metals attractive to investors as a hedge against uncertainty [3] Investment Opportunities - The strength in renewable energy, technology, and commodities highlights a wide range of investment opportunities across various sectors [4] Company Insights - **American Tower Corporation (NYSE:AMT)**: - Achieved an 8.5% core growth rate and expects mid- to high-single-digit growth, driven by spectrum auctions, 5G rollouts, and expanding AI workloads [10] - Operates nearly 150,000 towers and networked data centers globally, positioning itself as one of the largest multitenant communications REITs [11] - **Freeport-McMoRan Inc. (NYSE:FCX)**: - Experienced a temporary disruption at its Grasberg Block Cave mine due to an incident but confirmed contractor safety and prioritized employee safety [12][13] - A leading global mining company specializing in copper, gold, and molybdenum with major operations in North and South America and Indonesia [13] - **EQT Corporation (NYSE:EQT)**: - Announced a 20-year Sale and Purchase Agreement with NextDecade Corporation for 1.5 million tonnes of liquefaction capacity annually at the Rio Grande LNG export facility [14] - The agreement supports EQT's strategy to expand into international gas markets and enhance earnings, positioning it as a preferred global gas supplier [15] - Recognized as the largest U.S. natural gas producer, focusing on sustainable operations in the Appalachian Basin [16]

Group 1 - Qualcomm Incorporated (NASDAQ:QCOM) is a global leader in semiconductors, software, and services related to wireless communications, making it attractive to dividend-focused investors due to its balance of innovation and consistent income generation [1] - The company gained prominence by driving the smartphone revolution in the 2000s and 2010s, and the rollout of 5G networks has provided a renewed boost to its growth [2] - Qualcomm has expanded its portfolio beyond mobile phones to include components for network infrastructure, industrial equipment, smart home devices, virtual reality systems, and automotive technology, enhancing its long-term growth prospects [3] Group 2 - Qualcomm has a strong dividend growth streak of 21 years, making it one of the best stocks for a dividend portfolio, currently offering a quarterly dividend of $0.89 per share and a dividend yield of 2.14% as of September 18 [4]

Quantitative Models and Construction Methods 1. Model Name: 250-Day New High Distance - **Model Construction Idea**: This model tracks the distance of a stock's closing price from its 250-day high to identify momentum and trend-following opportunities in the market. It is inspired by studies showing that stocks near their 52-week highs tend to outperform[11][18]. - **Model Construction Process**: The formula for the 250-day new high distance is: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $Close_t$ represents the latest closing price - $ts\_max(Close, 250)$ represents the maximum closing price over the past 250 trading days If the latest closing price reaches a new high, the distance is 0. If the price has fallen from the high, the distance is a positive value indicating the percentage drop[11]. - **Model Evaluation**: This model effectively captures market momentum and highlights stocks or indices that are leading the market trends[11][18]. 2. Model Name: Stable New High Stock Screening - **Model Construction Idea**: This model identifies stocks with stable price paths and consistent momentum, as smoother price trajectories are associated with stronger momentum effects[27]. - **Model Construction Process**: The screening process involves the following steps: - **Analyst Attention**: Stocks must have at least 5 "Buy" or "Overweight" ratings in the past 3 months - **Relative Strength**: Stocks must rank in the top 20% of the market based on 250-day price performance - **Price Stability**: Stocks are scored based on two metrics: - **Price Path Smoothness**: Measured by the ratio of price displacement to the total price path length - **Momentum Consistency**: Calculated as the time-series average of the 250-day new high distance over the past 120 days - **Trend Continuation**: Stocks are ranked based on the 5-day average of the 250-day new high distance, and the top 50 stocks are selected[27][29]. - **Model Evaluation**: This model emphasizes the importance of smooth and consistent price movements, which are less likely to attract excessive attention and thus generate stronger momentum effects[27][29]. --- Model Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[2][12][34] 2. Stable New High Stock Screening - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[3][30][35] --- Quantitative Factors and Construction Methods 1. Factor Name: 250-Day New High Distance - **Factor Construction Idea**: Measures the relative position of a stock's closing price to its 250-day high, capturing momentum and trend-following signals[11]. - **Factor Construction Process**: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ - $Close_t$: Latest closing price - $ts\_max(Close, 250)$: Maximum closing price over the past 250 trading days[11]. 2. Factor Name: Price Path Smoothness - **Factor Construction Idea**: Quantifies the smoothness of a stock's price trajectory, as smoother paths are associated with stronger momentum effects[27]. - **Factor Construction Process**: - **Price Path Smoothness**: Ratio of price displacement to total price path length over a given period[27]. 3. Factor Name: Momentum Consistency - **Factor Construction Idea**: Measures the stability of a stock's momentum over time, emphasizing consistent performance[27]. - **Factor Construction Process**: - **Momentum Consistency**: Time-series average of the 250-day new high distance over the past 120 days[27]. 4. Factor Name: Trend Continuation - **Factor Construction Idea**: Captures short-term momentum by analyzing recent price movements[27]. - **Factor Construction Process**: - **Trend Continuation**: 5-day average of the 250-day new high distance, with stocks ranked based on this metric[27]. --- Factor Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[2][12][34] 2. Stable New High Stock Screening Factors - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[3][30][35]

Quantitative Models and Construction Methods 1. Model Name: 250-Day New High Distance Model - **Model Construction Idea**: This model tracks the distance of the latest closing price from the highest closing price over the past 250 trading days. It is used to identify stocks or indices that are approaching or have surpassed their historical highs, which can serve as indicators of market trends and hotspots[11][18]. - **Model Construction Process**: The formula for the 250-day new high distance is: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $ Close_t $ represents the latest closing price - $ ts\_max(Close, 250) $ represents the maximum closing price over the past 250 trading days If the latest closing price reaches a new high, the distance is 0. If the price has fallen from the high, the distance is a positive value indicating the percentage drop[11]. - **Model Evaluation**: The model is effective in identifying stocks or indices with strong momentum and can be used to monitor market trends and leading sectors[11][18]. 2. Model Name: Stable New High Stock Screening Model - **Model Construction Idea**: This model focuses on identifying stocks that not only achieve new highs but also exhibit stable price paths and consistent momentum. It incorporates factors such as analyst attention, relative strength, and price stability to refine the selection of high-momentum stocks[27][29]. - **Model Construction Process**: The screening criteria include: - **Analyst Attention**: At least 5 buy or overweight ratings in the past 3 months - **Relative Strength**: 250-day price change in the top 20% of the market - **Price Stability**: Stocks are ranked based on the following metrics: - **Price Path Smoothness**: Ratio of price displacement to the total price path - **New High Continuity**: Average 250-day new high distance over the past 120 days - **Trend Continuity**: Average 250-day new high distance over the past 5 days The top 50 stocks based on these criteria are selected as stable new high stocks[27][29]. - **Model Evaluation**: The model emphasizes the temporal characteristics of momentum and identifies stocks with smoother price paths, which are less likely to experience extreme volatility[27][29]. --- Model Backtesting Results 1. 250-Day New High Distance Model - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[12][13][34] 2. Stable New High Stock Screening Model - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[30][35] --- Quantitative Factors and Construction Methods 1. Factor Name: 250-Day New High Distance - **Factor Construction Idea**: Measures the relative position of the latest closing price to the highest price in the past 250 trading days, indicating momentum strength[11]. - **Factor Construction Process**: The formula is: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $ Close_t $ is the latest closing price - $ ts\_max(Close, 250) $ is the maximum closing price over the past 250 trading days[11]. - **Factor Evaluation**: This factor effectively captures momentum and is widely used in trend-following strategies[11][18]. 2. Factor Name: Price Path Smoothness - **Factor Construction Idea**: Evaluates the stability of a stock's price movement by comparing the displacement of the price path to its total length[27]. - **Factor Construction Process**: $ Price\ Path\ Smoothness = \frac{Price\ Displacement}{Total\ Price\ Path} $ Where: - Price Displacement is the straight-line distance between the starting and ending prices - Total Price Path is the cumulative sum of absolute daily price changes over a given period[27]. - **Factor Evaluation**: Stocks with smoother price paths tend to exhibit stronger and more sustainable momentum[27]. 3. Factor Name: New High Continuity - **Factor Construction Idea**: Measures the consistency of a stock's ability to maintain new highs over time[29]. - **Factor Construction Process**: $ New\ High\ Continuity = Average\ (250\ Day\ New\ High\ Distance\ Over\ Past\ 120\ Days) $ This factor calculates the mean of the 250-day new high distance over a rolling 120-day window[29]. - **Factor Evaluation**: This factor highlights stocks with persistent upward trends, making them attractive for momentum-based strategies[29]. --- Factor Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[12][13][34] 2. Price Path Smoothness and New High Continuity - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[30][35]

Group 1: Industry Outlook - The lighting industry is currently facing significant market pressures, leading to increased operational challenges for companies [2] - The competitive landscape is expected to persist, with cost and market pressures accelerating the exit of small and medium enterprises, thereby promoting industry consolidation [2] - The market concentration is anticipated to improve, with leading companies solidifying their positions due to advantages in channels, branding, technology, scale, and capital [2] Group 2: Strategic Planning - The company aims to transition from a single product supply model to integrated solutions in smart cities, smart homes, health lighting, and green lighting [2] - The development strategy is anchored on "internal growth + external mergers and acquisitions" as a dual-driven approach [2] - Internal growth will be achieved through enhanced operational efficiency, increased R&D investment, and optimized product structure, while external growth will focus on mergers to integrate industry resources and expand into high-potential emerging fields [2]

Group 1: Semiconductor Products - The company has achieved mass sales of high-precision CNC cutting, grinding, and polishing equipment for 6-8 inch silicon carbide substrates, becoming a major supplier in this field [2] - Silicon carbide is a core material for third-generation semiconductors, widely used in RF fields such as 5G communication and aerospace due to its high-temperature and high-power resistance [2] - The company is developing high-precision multi-wire cutting equipment for 12-inch silicon wafers, indicating a focus on larger substrate sizes [3] Group 2: Consumer Electronics - The global smartphone shipment is projected to grow by 1.0% in Q2 2025, reaching 295.2 million units, marking the eighth consecutive quarter of growth [4] - The company’s high-precision multi-wire cutting machines are widely used in cutting, grinding, and polishing hard and brittle materials for consumer electronics, receiving high recognition from industry leaders [4] - The rise of AI technology and new consumer electronics trends are creating new opportunities for the company in this sector [4] Group 3: Magnetic Materials - Magnetic materials are essential for various industries, including wind power, electronics, and new energy vehicles, with significant growth expected in these areas [6] - In 2024, China's production and sales of new energy vehicles are projected to reach 12.888 million and 12.866 million units, respectively, representing growth rates of 34.4% and 35.5% [6] - The company is recognized for its cutting machines and diamond wire products in the magnetic materials sector, which is expected to benefit from the industry's ongoing recovery [6]

Core Viewpoint - The company, Wuhan LianTe Technology Co., Ltd., specializes in the research, production, and sales of optical communication transceiver modules, with a significant focus on high-speed optical modules and technologies related to 5G and data centers [7]. Company Overview - Wuhan LianTe Technology was established on October 28, 2011, and went public on September 13, 2022. The company primarily generates revenue from 10G and above optical modules, accounting for 92.72% of its total revenue [7]. - As of June 30, 2025, the company reported a revenue of 504 million yuan, representing a year-on-year growth of 15.43%, and a net profit attributable to shareholders of 34.81 million yuan, up 14.02% year-on-year [8]. Market Position and Technology - The company has developed core capabilities in optical chip integration, high-speed optical devices, and high-speed optical module design and production. It is currently working on 800G optical modules and technologies required for next-generation products [2]. - The main application markets for optical modules include data communication, telecommunications, and emerging markets, with the data communication market being the fastest-growing segment [2][3]. Financial Performance - The company has a significant overseas revenue share of 89.07%, benefiting from the depreciation of the Chinese yuan [3]. - The average trading cost of the company's shares is 107.21 yuan, with the stock currently near a support level of 108.00 yuan [6]. Shareholder and Institutional Holdings - As of June 30, 2025, the number of shareholders increased to 23,300, with an average of 2,920 shares held per person, a decrease of 9.85% from the previous period [8]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited and new institutional investors, indicating a diversified shareholder base [9].

Core Viewpoint - The company, Zhejiang Zhaolong Interconnect Technology Co., Ltd., is experiencing fluctuations in stock performance and is positioned to benefit from trends in high-speed connectivity, 5G, and machine vision technologies [1][2]. Company Overview - Zhejiang Zhaolong Interconnect was established on August 21, 1995, and went public on December 7, 2020. The company specializes in the design, manufacturing, and sales of data cables, specialized cables, and connection products [7]. - The revenue composition includes: 43.60% from data communication cables of category 6 and below, 20.81% from category 6A and above, 18.04% from specialized cables, 11.62% from connection products, and 5.94% from other sources [7]. Financial Performance - For the first half of 2025, the company achieved a revenue of 972 million yuan, representing a year-on-year growth of 14.29%. The net profit attributable to shareholders was 89.61 million yuan, showing a year-on-year increase of 50.30% [7]. - As of June 30, 2025, the company had a total market capitalization of 18.22 billion yuan [1]. Market Position and Products - The company is one of the few in China capable of designing and manufacturing data cables of category 6, 7, and even category 8, which are essential for the data transmission needs of the 5G era [2]. - The company’s high-speed component series products (DAC) are primarily used for connections in large data center switches and servers, with successful development of 800G transmission speed cables [2]. International Revenue - As of the 2024 annual report, overseas revenue accounted for 61.93% of total revenue, benefiting from the depreciation of the Chinese yuan [3]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 24.73% to 35,000, with an average of 7,265 shares held per person, a decrease of 3.80% [7]. - The company has distributed a total of 113 million yuan in dividends since its A-share listing, with 82.34 million yuan distributed over the past three years [8].