Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights the continuous growth of Nvidia's data center revenue, with expectations for the GB300 to begin shipping by the end of the quarter. Nvidia reported a revenue of $44.1 billion for FY2026 Q1, marking a 69% year-on-year increase and a 12% quarter-on-quarter increase. The data center business alone generated $39.1 billion, up 73% year-on-year and 10% quarter-on-quarter [2][10] - The DeepSeek R1 model has been upgraded, showcasing enhanced reasoning and programming capabilities. Major cloud giants are integrating this model, which significantly improves inference capabilities and code quality [3][13] - The report emphasizes a positive outlook on the domestic AI computing power industry chain, satellite internet, and 6G, recommending seven key investment directions including AIDC data center construction, IT equipment, network devices, cloud computing platforms, AI applications, and satellite internet & 6G [4][16] Summary by Sections Section 1: Investment Insights - Nvidia's data center revenue continues to grow, with GB300 expected to start shipping soon. The company has deployed nearly 72,000 Blackwell GPUs weekly among major hyperscale enterprises, with Microsoft as a key customer [2][10] - The DeepSeek R1 model has been launched, with significant improvements in structured reasoning and code generation, now being adopted by various major tech companies [3][13] - The report suggests focusing on the domestic AIDC computing power industry chain and highlights the importance of AI applications and infrastructure development [4][16] Section 2: Communication Data Tracking - As of March 2025, China has 4.395 million 5G base stations, with a net increase of 145,000 stations from the end of 2024. The number of 5G mobile phone users reached 1.068 billion, a year-on-year growth of 22.20% [26] - The report notes that 5G mobile phone shipments reached 19.424 million units in March 2025, accounting for 85.3% of total shipments, with a year-on-year increase of 9.52% [26] Section 3: Operator Performance - The three major operators have shown strong growth in cloud computing revenues, with China Mobile's cloud revenue reaching 100.4 billion yuan in 2024, a year-on-year increase of 20.4% [42] - The ARPU values for the three major operators remained stable, with slight variations noted among them [42][48]

Investment Rating - The industry is rated as "Overweight," indicating an expected increase in performance exceeding the market benchmark by over 10% in the next 6-12 months [7]. Core Insights - The report continues to recommend investment in AI software applications, highlighting the potential of the domestic AI computing power industry chain. It also maintains a positive outlook on humanoid robots and the related electronic industries, as well as the valuation reassessment in the Hong Kong internet sector [1][3]. - The emergence of MaaS (Model as a Service) is expected to lead to a reevaluation of software companies, driven by increased update frequency of models, resulting in more stable cash flows for these companies [1]. - The humanoid robot industry is experiencing sustained interest, with a trend of expanding from structural components to electronic components, indicating potential for collaborative development within the electronic industry [3]. Summary by Sections AI Software Applications - Continued recommendation for investment in AI software applications, with a focus on the domestic AI computing power industry chain [1]. - Companies to watch include: 用友网络, 金蝶国际, 汉得信息, 鼎捷数智, 赛意信息, 新致软件, 迈富时, 博思软件, 泛微网络, 致远互联, 虹软科技, 金山办公, 合合信息, 福昕软件, 万兴科技 [1]. AI Computing Power - Emphasis on the importance of the domestic AI computing power industry chain, with a focus on low penetration rates and accelerating commercial trends [2]. - Key areas of interest include CPO, AEC, and liquid cooling technologies, as well as opportunities in cloud vendor valuation reassessment and demand improvement for computing power leasing and IDC leasing [2]. - Relevant companies include: 中国电信, 中国联通, 寒武纪, 海光信息, 浪潮信息, 华勤技术, 中兴通讯, 太辰光, 天孚通信, 瑞可达, 英维克, 龙迅股份, 澜起科技, 胜宏科技, 沪电股份, 中恒电气, 禾望电气, 麦格米特, 欧陆通, 杰华特 [2]. Humanoid Robots - The humanoid robot industry is gaining momentum, with a shift from structural components to electronic components, indicating a strong potential for synergy within the electronic industry [3]. - Companies involved include: 峰岹科技, 思瑞浦, 龙迅股份, 瑞芯微, 电连技术, 纳芯微, 韦尔股份, 地平线 [3]. Hong Kong Internet Sector - Continued focus on the valuation reassessment in the Hong Kong internet sector, driven by advancements in large model technology and the open-source movement [3]. - Tencent Holdings is highlighted for its strong ecosystem combining social and content services, leveraging its user base for monetization across various sectors [3].